The Dollar Stretcher

Preparation - military style

2008-07-15T21:08:00Z

Got an email from a friend poining out a blog that's a little different. It talks about finances, but also has stuff for survivalists and adventurers! You can check it out here

Right now they have a lot of different information on financial preparedness. Seems like that might be our theme this week. And while I'm not to the point that I think the economy is going to force me to be able to survive without my local grocery store, it is a good time to get ready in case things get tougher economically.

Keep on Stretching those Dollars!

Gary

Recession or Depression?

2008-07-10T14:37:00Z

What's the difference between a recession and a depression?
Which one are we in now?
Is it possible that the other will happen?
Thanks, Carrie

Perhaps an article on the definition of a recession would be helpful. Love the Stretcher, but you seem to accept that we are in a recession. Not by
the numbers - not yet, at least. We are experiencing inflation. But maybe not a recession. Time will tell. Just makes a great website and
newsletter look less than stellar when you buy in to the conventional wisdom instead of stating facts...
Jennifer

Carrie & Jennifer,

Let's start with the facts. A recession is when the economy shrinks for 2 consecutive quarters.A depression is when the economy shrinks by more than 10%.

So far we have not even had 1 quarter where the economy has shrunk. So we're not in either a recession or a depression.

It's possible (likely?) that we'll go into a recession. We haven't had even 1 quarter of economic decline since Q3 2001 (9/11) and no recession since before 2000. So it's remarkable that we haven't had one before now. Based on past economic cycles we are long, long overdue.

As to forecasting the future? That's something that I really don't think I can do.

Do I buy the 'conventional wisdom' that we're already in a recession? No, I really don't. I think that the media will always promote a potential crisis. It helps them to keep readers/viewers and to make money. You'll never see a big headline saying "Everything Is OK". That doesn't sell newspapers or keep TV watchers from reaching for the remote. In fact, I get bugged when they hype a recession that doesn't exist. Frankly, they've got a lot of people scared who don't need to be.

But just because we're not officially in a recession, that doesn't mean that we shouldn't discuss being prepared for hard times. Even when times are good. Just like the Boy Scouts we believe in being prepared. For a job loss, unexpected illness or other unexpected expense. That's just being smart in my book. We've been encouraging people to save for a rainy day since we started in '96. I've been telling individuals the same thing back when I was a financial planner for the last 25 years. It's always been good advice.

Does that make us look like we're going along with the 'conventional wisdom'? Perhaps. But, that's really not the motivation.

It's important for us to remember that not everyone is in the same place in life. Some of our readers are doing just fine. Sure, they're not happy about higher gasoline or bread prices. But, paying for them won't break their budget.

That's not true for everyone. Some folks are really struggling with the higher gas prices. They can hardly afford to drive to work. Others may have lost a job or faced a sudden illness. For them it doesn't matter whether the economy is in a recession. Their family is in a recession. And, that's all that matters to them.

It's our job to try to provide tools for those who need them and are willing to use them. That means that we'll probably always pay a little more attention to the black cloud instead of looking at the silver lining. Personally I tend to be an optimist. But I think that being prepared for the worst actually gives you more freedom to be optimistic about the future. Instead of worrying about it, you know that you've taken appropriate steps.

That really would make a good motto. "Expect the best, prepare for the worst." (I googled it and find that it's attributable to Zig Ziglar - it does sound like something that he'd say). But, it's good advice. Especially for those of us who want to be in control of our financial futures.

Keep on Stretching those Dollars!

Gary

You Wouldn't Believe...

2008-07-07T14:27:00Z

It all started three weeks ago. A group of friends and I were doing the BBQ for a fairly large charity event (expected crowd 300 to 500 people) on a Saturday. We were bringing out our trailered smoker and 8 burner gas grill. On the menu: burgers, dogs, pulled pork and corn-on-the-cob. In volume. The first guys headed out about 8am. I followed about 9:30.Figured to start serving about 11:30am.

We were really smoking (literally!) until about 10:30. We had plenty of help and the guys were all just enjoying working together for a good cause (in this case, a home for foster children). That's when it became obvious to us that rain clouds were heading our way. Massive rain clouds.

You can probably guess what happened next. The skies opened up on us. And, there's no downpour like a Florida downpour. A little like standing under a waterfall. But we had people to feed. So we kept on cooking. And cooking. For about 3 hours in a very steady hard rain.

Still the guys were all fine about it. In fact, we even had some fun with it. By the time I got home around 3pm I was soaked to the skin. Couldn't have been any wetter if I had jumped in a lake with my clothes on. I had a few dollars folded in one pocket. Soaked. My wallet? Just about the same. First thing I did when I got home was to get out of the wet clothes and take a shower. Tossed my wallet in it's usual place figuring it would dry out soon enough.

Fast forward a couple of weeks. I'm shopping and pull a bill from my wallet. It's still a little damp. And my wallet has a distinct musty aroma! Now that wouldn't be a big deal unless you're known as the Dollar Stretcher. And, although I'll admit to be careful spending money, there's no truth to the rumor that my wallet is opened so seldom that mold is growing on the inside. Really, I promise you that it's just not true!

Moral to the story? If you're cheap and get very wet you need to make sure that your wallet gets properly dried. Failing that I wonder if putting one of those pine tree car fresheners in my wallet would work...

Keep on Stretching those Dollars!

Gary

(musty smelling wallet)

$2.42 per gallon?

2008-07-05T15:45:00Z

As regular readers know, I'm a car guy. Always have been. Always will be. In fact, I plan on taking my Impala to an old car show tonight. Can't wait!

Part of being a car guy is learning about cars. And, I've learned that the internal combustion engine wasn't always the only choice for power. Back in the early days (until the 1920's), both steam (Stanley Steamer and others) and electric (primarily the Detriot Electric) were options. But there have always been some alternative fuel vehicles. The Checker Motor Co. (makers of cabs from the 20's until the 80's) experimented with a propane car in the 70's. There were others. But, eventually the internal combustion engine always had more going for it than the others. The main advantages were that you didn't have to wait for the car to be ready (like steam) and you could drive anywhere that gasoline was sold (unlike the electric which had a limited range).

Just today I was fascinated to read a blog entry from someone who's been driving a CNG Honda. CNG stands for Compressed Natural Gas. He claims to be paying the equivalent of $2.42 per gallon of gasoline or $15 a fillup! Thought that you might find it interesting reading. You can check it out here .

I'm not sure what the future of personal transportation will be. Tonight I'll be driving a 327 Chevy putting out about 300 hp on high test. I won't spin the tires even though I could. But, I wouldn't be surprised to find that someday people will look at my '65 and wonder why people used internal combustion engines as long as they did.

Right now CNG is only practical if you live in certain places and can find a fillup when you need one. But, if that's the case you might find that it's a great way to avoid problems caused by rising gasoline prices!

Surprises

2008-07-04T14:56:00Z

I love the little surprises of the day. Especially the ones that make me smile or think. Really especially the ones that make me do both!

This morning I was introduced to a new blog. It's called "Only Knives" and the entry that drew my attention was "10 Reasons to Shave with a Straight Razor". You can read it here

Now most guys would pretty much laugh at that type of thing. After all, who wants to go back 100 years or more. And, the thought of putting something sharp near your jugular vein conjures up all kinds of horror films.

But, I am kind of a retro guy. Much of our furniture is 50's style (mid-century modern). For fun I drive a '65 Chevy. And, much of the music I love is back in the tape or record era. So maybe it's something I should think about.

In any case, it's an interesting read. Even if you have no intention of letting anything more lethal than a Bic disposable razor anywhere near your neck! And, even if the only shaving you do is on those beautiful legs of your's. It may not make you think the way I did, but it will make you smile! And, if you decide to take a swipe at it (ok, wrong choice of words) it could save you some money!

Keep on Stretching those Dollars!

Gary

Modeling

2008-07-01T15:06:00Z

The other day I saw an interesting t-shirt at the Y. A simple message. "Professional Role Model." A young mother was wearing it. And, I believe that she was exactly right. She is a role model for the two youngsters that were following her.

That's also true in financial affairs. Even if we don't make a conscious effort to teach our children about money, they still watch what we do. And, very often they will imitate it.

So if you spend more than you make and struggle with the bills each month, don't be surprised if your kids do, too. On the other hand, if you use a budget and manage your finances there's a good chance that you won't be the last generation to do so.

We're all "Professional Role Models" in more ways than we probably want to think about. But, that's part of what parenting is all about.

Keep on Stretching those Dollars!

Gary

Being Really Green

2008-06-20T11:34:00Z

Lately eveyone has been touting their 'green' credentials. You don't have to look too hard to find someone talking earnestly about 'carbon footprints' or expounding on renewable energy. I admit that some of them seem a little phoney to me. Here's why. Their lifestyles don't match their rhetoric. In other words, they're walk doesn't match their talk.

When the conversation turns to environmental issues, I have my own 'green test'. It's my way of finding out whether the person really cares about the environment or is just mouthing something that they read in a magazine or heard at a rally somewhere.

I'll ask if the person shops at garage sales and thrift stores. It takes natural resources to make most things. Buying used means that you're not consuming those resources. That's real environmentalism.

The person who's really concerned about the environment will make sure that their used items are given a chance for a 2nd (or better still a 3rd) life. Donate your used items to a thrift store, hold a garage sale or sell them on eBay. Just because you're through with something doesn't mean that it can't be useful to someone else.

I'll try to find when was the last time that they fixed something instead of replacing it. Often I get blank stares on this one. "Fix it??" You know the people I'm talking about. If the least little thing goes wrong, they're out shopping for a replacement. Nevermind that a repair might be easy. Or the problem might not affect how they use the item. They have their excuse to buy a new one. And they're not going to let tossing one more item into a landfill stop them!

You see, I've known many people who have been good to the environment. But, many of them never thought of it that way. They were just living frugally. Looking for ways to avoid spending money came naturally. That meant fewer purchases. Considering alternatives before throwing something away was automatic. In the process they walked gently on the earth and only consumed what was necessary.

Personally, I'd much rather talk to the person living a thrifty lifestyle than the expert in carbon offsets. I find that I learn much more practical info that I can apply and benefit from. Things can actually make a difference in my life and also make a difference for the earth.

Keep on Stretching those Dollars!

Gary

The Power of Many

2008-06-19T13:22:00Z

We've been trying to solve a puzzling problem with one of our website pages. It was one of those intermittent problems which are always hard to figure out. We finally came up with an explanation. Readers were using the page in a way that we simply hadn't expected. And, that caused a script to choke on the data provided.

The natural inclination is to ask why would people misuse the form. But, I really believe that's the wrong approach. They didn't misuse the form. They just looked at it differently than most people. And, that doesn't make them wrong. Just differernt.

Or perhaps a better description would be that they're creative. They have the ability to see things in a way that most of us don't or can't. And that's valuable.

The same thing happens here at The Dollar Stretcher. No one person or even a whole writing staff could think of every way to save time and money. That's where you come in. We're blessed with over 100,000 reading our newsletters each week and another 100,000+ visiting the website. That's a lot of people who can bring their creativity to any problem that we face. And we don't hesitate to ask for your input. You've seen it in the 'can you help this reader?' series, our Dollar Stretcher Community forums, and other places.

Thanks for being willing to share your wisdom, ideas and creativity. We're all much smarter because of you!

Keep on Stretching those Dollars!

Gary

Teamwork

2008-06-18T18:31:00Z

Last weekend I was reminded of something that we all know, but seem to forget if we're not reminded every so often. A friend of mine had a big oak tree that needed to have a couple of limbs removed. Big limbs. Real big limbs! The cost to call in a tree surgeon would have been significant. Instead he asked for help from a group of his friends.

About a dozen showed up. Between them were 3 chainsaws of various sizes, a couple of pick-up trucks, an expert at tree climbing, a couple of expert cooks and a lot of willing hands. Being among the oldest (and probably weakest!) of the group I was assigned to the kitchen patrol (my wife warned me about not having a heart attack!). After we had the food (pork roast, pulled bbq pork, hot dogs, green bean casserole, potato salad, etc) in process we went out to check on the work crew. (just for the record, I was the 'gofer' for the two main cooks)

They already had the biggest limb (about 20 inch diameter and 50 feet long) down. I have no idea what it weighed, but it was monstrous! Most of it was already gone. They were about to take the smaller branch off. It intersected the tree at about 25' off the ground and was about 15 inch diameter and 75 feet long. The tree climbing expert got to it and a saw was lifted up to him. As sometimes happens, as he cut the branch twisted and the outside of the branch got caught in another tree. The branch twisted and pinced the chainsaw bar. A few minutes of discussion and the guys had a couple of ropes on the limb and pulled it loose from the ground. Disaster avoided in a matter of moments!

As soon as the branch hit the ground the guys swarmed it like ants at a picnic. One guy took his saw and cut off all the smaller branches that came off the main one. I joined three other guys pulling those smaller branches to a heap that would me chipped later. Another guy with a chainsaw was cutting the main branch into sections approximately one and a half feet long. Just about the right size for splitting for firewood. A couple of guys were loading the pieces into a cart attached to the lawn tractor. Right behind was a couple of guys raking up anything left behind. The whole job was done in about three hours!

It reminded me of an old-fashioned barn raising (at least I think that they're old fashioned...please let me know if that type of thing is still going on...I'd love to hear if any still happen). It's truly amazing how much work can be done (not to mention the sense of community) by a group dedicated to a specific task.

How does that relate to your finances? Good question, oh enlightened reader! Some of the best ideas that I know of right now for saving money are group efforts. Take, for instance, meal exchanges. They're most often seen in a workplace. Suppose that there are 4 members of the exchange. Each week each member prepares a meal big enough for all four families. They serve one at home and bring the rest (portioned out) to work to give to the other three members. So cooking one day means that each family has four dinners. Not bad! They save by buying larger sizes, but also because they're much less likely to use the drive-thru on the way home from work. After all, dinner is just a reheat away! For more on meal exchanges click here.

Or how about the "Lunch Club"? It's similar to the meal exchange. Again, we'll suppose 4 members. Every fourth day each member is responsible for bringing lunch for the entire group. So instead of going out every day ($5, $6 or $7 a day) or coming up with something different for lunch each day, you only have to do something every fourth day. Another great deal. Check out one lunch club here.

Carpools are another great example. Sure, we all like the independence that having our own car gives us. We can come and go whenever it's convenient. But, $4 a gallon gas does require some adjustments if our budgets aren't going to be trashed. (for the record I do not carpool. But I only live about 3 miles from work, so my consumption of gas isn't significant)

Or what about having a garage sale? Group sales are much more fun. You can share advertising and enjoy a much bigger crowd of shoppers. I know of some neighborhoods that have an annual sale each summer!

I'm sure that you can come up with many more ideas. Why not talk to some friends/neighbors and see what you can come up with? Not only will you save some money, you might also enjoy a better sense of community!

Keep on Stretching those Dollars!

Gary

Park My Car?

2008-06-16T17:19:00Z

I seem to have a problem that to my knowlege has not been addressed: Due to gasolene increases I have been taking the advise of the experts on how to save money at the gas pump. Consequently, I use my car as little as possible, by walking everywhere that I possibly can, using my car only when necessary, about twice per week. Apparently this has been causing me several auto repairs which my auto mechanics attribute to my car not being used enough. The most recent being a $90.00 car battery, which did not last me near as long as the batteries when I was driving more frequently. This situation has me baffled as it appears there is far less cost for me to fill up the tank more often, then to be paying high repair bills.

I would appreciate your imput.

Sincerely,

Joan

I'm not a trained automotive expert, but I am an old car nut and have a '65 Impala in my garage that goes out once or twice a month. So I spend a lot of time with cars and people who love cars.

There's no reason that you should have to use your car more than once or twice a week. A modern battery and charging system should work fine under these circumstances. Most replacement batteries specify an expected life (i.e. 60 month, 72 month, etc). If you get much less than that there's probably something wrong with the charging system (alternator, voltage regulator) or a slow drain on the system. If all of your trips are very, very short you can buy a 'trickle charger' that will keep your battery charged. They run about $50 and are very easy to use. But, even that shouldn't be necessary if the car is being driven a couple of times a week.

As to the rest of the car, a twice a week drive shouldn't cause any problems. Generally a car needs to sit for months before gaskets and seals will give you trouble. Gasoline should be good in your tank for 6 months or more.

Perhaps your mechanic knows something that I don't, but I hang around people who use their collector cars infrequently. And, how to store cars that aren't used is a common topic for discussion. My guess is that he's just using that as an excuse for things that were going to go bad anyway due to age.

I'd go back to walking and see what happens.

Keep on Stretching those Dollars!

Gary

Unintended Consequences

2008-06-09T20:27:00Z

I bet that you like low interest rates. I do, too! They make it much easier for people to borrow and repay loans. That's something that both borrowers and lenders like. Making it easier to repay loans!

Not only are low interest rates good for borrowers and lenders, they can also spur the economy in two ways. First, domestically. If you can afford the mortgage on a new house then I get to build it. Good for the economy!

Plus it makes it easier for people to refinance those nasty adjustable mortgages that are getting all the headlines. Congress, the mortgage lenders and homeowners all like that.

It's also good internationally. Lower interest rates makes American goods cheaper in the world market. That means that we're able to see more 'made in America' product in places like Europe and Asia. Great for the American worker!

So how do we get lower interest rates? Well, when you cut through all the fancy economics talk, the bottom line is that you print more money! Yep, it's that simple. Just crank up those presses a notch or two and dollars are plentiful for all of us.

Sounds pretty good. That's why the Federal Reserve is holding interest rates down and Congress doesn't mind spending money that the government doesn't have. Whirrr! You can just hear those presses run.

And it would be good except for a couple of little problems that need to be worked out. The first is that it makes imported goods more expensive for us. So those Nike's that Junior wants or the (gasp!) gasoline that you put in your tank will cost more. The Saudis know a falling dollar when they see one.

Yes, those cheaper dollars won't buy as much of all the foreign goods that we like so much. We're importing a little over $200 billion a month. So it's not just gasoline and sneakers that will cost more.

Looks like the small problems with cheaper dollars aren't really so little. In fact, at $4 a gallon for gas, it looks like those cheaper dollars could turn out to be very expensive.

So what's the average consumer to do? Be prepared to see imported items (like oil and sneakers) cost more. Don't believe any politician who claims that they can pass a bill and make those things cheaper. They can't (and if they were honest they'd admit it).

Anything that they try to do will only make it worse. If you don't believe it read about the Smoot-Hawley Tarriff Act that was a major cause of the depression of the 1930's. That time they were trying to protect the American worker from low cost foreign goods. It didn't work out too well.

What else can you do? Change your habits to reflect the new prices. Find a way to drive less. Carpool. Switch your workweek to 4 ten hour days. Shift your day so you can commute before or after 'rush hour'. Find some way to reduce the amount of gas that you must buy.

If you have any extra money it's a good time to pay down any variable debt. The higher prices (think inflation) will almost certainly cause higher interest rates some time soon. And, that means that any debt that's tied to interest rates will cost you more. So pay it off now. Make it a priority. The last time that we choked off inflation with higher interest rates unemployment went up. It's much easier for you and I to pay off debts when we have a job.

Have a variable home loan? You'll want to convert it over to a fixed loan. You might even want to pay off your credit cards and add that to the new loan. (a caution: this will only work if you have the discipline to pay off your entire credit card bill each month from now on)

Finally, don't sit back and wait for someone to solve the problem for you. The same people who brought you the problem aren't likely to solve it.

Your best bet is to recognize the change in prices today and make changes to the way you live. Prepare for the changes in interest rates to come. No one is saying that the future will be easy. But, it will be easier if you start making changes now.

Keep on Stretching those Dollars!

Gary Foreman

Frugal Friends

2008-06-05T12:47:00Z

One thing that I really enjoy about my job is that I get to meet a lot of interesting people. And, not surprisingly, many of them are of the frugal living stripe.

Two of them are Annette and Steve Economides. They're often referred to as "America's Cheapest Family". I've had the pleasure of trading ideas with Steve on more than one occassion. If there were a frugal living all-star team, you'd find Steve and Annette on the first team! They have a website that I'm sure you'll find interesting.

Recently, I was introduced to Vicky and Jen and their site called "What Really Matters". They wanted me to know about a podcast interview they did with Annette and Steve. If you're a podcast fan you'll want to check it out. Their discussion touched on pricey
cleaning products, money and kids, grocery shopping and more. You might want to check out the rest of their site. I spent some enjoyable time their myself.

Keep on Stretching those Dollars!

Gary

Congress Likes Higher Food Prices

2008-05-19T16:15:00Z

It's fairly obvious to anyone who's not sleepwalking that higher food and fuel prices are really hurting most Americans. Everyday I get emails from folks who are struggling with these two bills. For many people it's a real serious problem.

Maybe I'm just an optimist, but I figured that our elected representatives would recognize the problem and try to do something about it. Boy, was I wrong. Not only did they ignore the food price inflation, but they actually found a way to make it worse! They just don't seem to understand what it's like for you and I to work to support our families. Last week provided an excellent example. On May 14th, the House passed a $307 Billion farm bill.

Now, I like farmers as much as anyone. In fact, Foremans were Wisconsin dairy farmers. I was raised in the city, but spent lots of time visiting relatives who made their living on small family farms. So I have the utmost respect for someone who plants something and nurtures it as it grows bigger. And, I want to help those people wherever I can. But, this bill doesn't do that. It assumes that you and I are too stupid to go beyond the name 'farm bill'. We must be too dumb to recognize that it's not the small farmer who's being protected. It's the large agri-business corporation and others who have little (or nothing) to do with farming as you and I would think of it.

First, look at the cutoff. A couple with a yearly income of $1.5 million can receive farm subsidies. Call me Scrooge, but I'd say that families making more than, oh, say $500,000 per year probably doesn't need subsidies paid for by you and I. One group reports that only 8% of the producers will get 78% of the money here

Still think it could be a good piece of legislation? Take a look at your grocery bill. You'll find that bread, milk and meat have all increased in price. Dramatically. Why? In large part because ethanol is consuming grains that normally would go to feed us. Higher prices indicate that there's more demand for corn than we can produce. Now you might think that Washington would get the idea that their ethanol mandates should be relaxed until the supply of corn can catch up with the demand. Guess again. So why is the government subsidizing ethanol production? Seems a little like pouring gas on the fire of higher food prices.

Then you have the old Congressional shell game. That's where they include spending that has nothing to do with the main bill. After all, who wants to be against the family farm? So let's throw in some money for horse racing and timber interests. Those dummies back home will never know the difference!

Rational people might have said that this was a good time to limit a farm bill to helping those family farmers who truly need help. "Farm net income is up 56% in the last 2 years" (source: NY Times) There's "$40 billion in subsidies to commodity farmers who already enjoy record prices." (source: SF Chronicle) We could have had a farm bill that took care of the small family farm without causing additional grocery inflation. But, that wouldn't have pleased all the special interests.

Guess I'm just mad. You and I are dealing with higher energy and food prices. Instead of doing something to help, our elected representatives (from both parties) are busy spending our money buying favors for themselves. Adding 'earmarks' to every bill in sight. I really believe that it's time to put Washington on a budget. And, force them to keep it. Whoever said that they should be allowed to 'earmark' anything? I don't recall voting on it.

Much of the economic trouble that you and I face today is due to the clowns (and I use the term intentionally) in Washington that we call elected representatives. They set us up for this fall. And, unless a camera is present they really don't seem to care to much about how much it hurts us. After all, things are booming in the beltway. No recession there!

I was raised to respect the people who led our country. But, it's really hard to respect someone when you know that their back pockets are filled with money that at best was unearned, and, at worst could be called bribe money. Maybe it's time to let them know how little respect they've earned.

So the next time your elected representative says they're against special interests ask them how they voted on the farm bill. There were 318 yes votes (and only 106 no's) in the House. The Senate voted 85-15. This isn't a partisan Democrat/Republican issue. This is a question whether we can trust the crazies on the Potomac not to bankrupt both the government and you and I. If they voted 'yes' on this bill, it's probably time to vote 'no' on their re-election this November.

Keep on Stretching those Dollars!

Gary

Specator Sports

2008-05-15T15:46:00Z

Heard an interesting phrase at a conference I was attending. It came from Tom Evans, President and CEO of Bankrate. He said that "money is no longer a spectator sport" and I think that he's right.

When we bought our first home the choices in mortgages were pretty simple. Unless you were self-employed you took out a 30 year mortgage. There was a little difference in closing costs and points, but nothing too dramatic.

Credit cards were also pretty simple. You had gas, store and bank cards. But no 'cash back' or points cards. Everyone had the same payment due date. And, interest rates on most cards for most customers were the same.

Back then you could put your finances on autopilot. Sure you needed to know how much you owed on your credit card. But there weren't too many decisions to make.

Sure is a different world today. Much, much more complicated. Not only do you need to know how each different credit card is handling your balance, but also how they're handling new purchases. And, your mortgage, well that's another whole topic.

Tom was right. Money is no longer a spectator sport. Whether you like it or not, you're a part of the game. And, that means reading more and learning more. No doubt, that's a challenge for many people. Fortunately, there are a lot of good resources available to you. We hope that you consider The Dollar Stretcher.com and our newsletters to be one of those good resources.

Keep on Stretchin' those Dollars!

Gary

Gas Crisis???

2008-05-12T15:10:00Z

Just finished an interesting week. I drove across the state for a conference. The conference was about online financial news. Many of the discussions included comments about how higher gas prices were causing big problems for consumers. (BTW, I agree that higher gas prices are causing problems for consumers. But, as you'll see in a moment, I'm a bit confused as to how consumers are reacting to the problem).

The first thing I noticed was that people were traveling a little slower on the highway. I couldn't ask them, but I suspect that they were trying to save a little gas. According to http://www.fueleconomy.gov/feg/driveHabits.shtml gas mileage decreases dramatically when you go faster than 60 mph. Until recently here in Florida the interstate moved along at about 80 mph. This trip it seemed to be closer to 75 mph. I usually try to stay with traffic, so I managed to save myself a few dollars this trip.

But, the signals were mixed. Yesterday was Mother's Day. Mama didn't want to cook and didn't want to eat what I volunteered to cook. She wanted to do takeout from one of those national chain restaurants. At this one, you call ahead and just pull into a special section of the parking lot. A server comes out to your car. They'll go back and forth until your transaction is complete. At 6:15 on Mother's Day you'd assume that they'd be busy. And, they were. What struck me as odd, was that I was the only one who shut off the engine and rolled down the windows. Granted the temperature was in the upper 80's. But, if gas is too expensive, how can I justify sitting in a parking lot for 10 minutes with the engine running? (maybe not everyone is concerned with gas prices)

Next, I refilled my tank. While I'm pumping gas the fellow on the other side of the island comments "guess it'll be $4 the next time we fill up". I have no way of knowing whether that's true or not. Even the experts at the conference couldn't tell for sure. But, I am convinced that if we want to have low energy prices we'll need to address both the supply and the demand side of the issue. That means taking steps to conserve the energy we have. But, it also means using the resources we have to produce more energy. We may choose to buy an SUV to go to the mall. We can decide not to make our homes more energy efficient. We can vote not to drill for oil or build refineries. We can say no to windmills and nuclear plants near us. We can put all of hopes on tomorrow's technologies being clean and abundant. We have that right. But, let's not kid ourselves into thinking that those decisions don't have costs. They do.

Finally, a way that you can reduce your cost of gasoline. Just by buying and using a tire gauge monthly, you'll get about 10% better gas mileage (if you're the typical driver). An investment of less than $5 and ten minutes a month could save you many dollars. Along with driving slower, it's the easiest way to reduce your fuel bill. You'll find more on the subject here.

Keep on Stretching those dollars!

Gary