T he key to achieving long-term financial security is to be a smart spender. To save more money without compromising your lifestyle...

Use two checkbooks. Most people use the amount in their checkbooks to pay for all types of expenses. But two checkbooks will force you to save for variable expenses. And -- many banks allow you to open a second checking account for free. How the system works...

Primary checkbook holds cash needed for necessities -- mortgage, groceries, utilities, insurance premiums, etc.

Second checkbook functions as a savings account and is used to pay for gifts, travel, unreimbursed health insurance costs and all other variable expenses.

The two-tiered checkbook approach will help you set saving priorities and encourage you to pay in full for major, luxury expenses rather than with a credit card.

Try the painful payment method. The ideal way to pay for what you buy is not the one that makes you feel best. The more uncomfortable you feel when you pay, the more likely you will think about whether each purchase is really worth it. Result: You'll wind up spending less.

Example: If it hurts to pay cash, pay cash. If you hate writing checks, pay by check. Either method is far more annoying than using a credit card, which is the worst way to pay -- because there are no feelings of restraint or guilt.

Forget about frequent-flier miles. Credit cards that reward you with miles are terrible temptations. They encourage you to overspend because you think you'll get a bargain on airfare.

Reality check: Each mile you receive has a real-world value of about one cent. So if you spend $100 more at the mall than you should, your actual "reward" will be $1.