The Dollar Stretcher : Dollar Stretcher

Why the Waste?

Gary — Tue, 04 Nov 2008 19:51:00 GMT

Recently I did an interview with Dana Dratch (Google her work. She's an excellent writer on personal finance and a wonderful human being, too!) We were talking about ways to reduce your grocery budget. One of the strategies that I mentioned was eliminating food waste.

Wasting food is particularly hard on a food budget. Think about it. You've already spent the money. And you get zero benefit from it when it hits the trash. Can't get much worse than that if you're a Dollar Stretcher.

How much do we waste? Good question. And, not an easy one to answer. I'm aware of two studies on the subject. In 2004 The University of Arizona in Tucson found that an incredible 40 to 50% of all food produced in this country goes to waste. But, the study included food that was produced and not sold to the consumer. It included farmers speculating on crops and other sources of waste.

The second study is from the U.S. Dept. of Agriculture in 1997. So it's a little old, but still interesting. Their data suggests that 27% of all food is wasted.

And the waste isn't limited to the U.S. A British study quoted in the NY Times indicated England wastes 1/3 of it's food. Sweden joins in with 1/4 of it's food going to waste. It appears to be a problem in all prosperous and complex societies.

Fortunately for us (the Dollar Stretching consumers), much of the problem can be eliminated. It's not terribly hard to do and doesn't cost a bunch of money. Just adopt a few simple tools to your lifestyle and you could reduce your grocery budget by 25%.

Begin at the grocery store. Recognize that food has a shelf life. Sure there are some canned goods that will probably survive a nuclear attack. But, most of the items we buy will go bad if not eaten. Some in weeks or months. Others in a matter of days. Do you have a plan to eat whatever you buy before it goes bad? Many of us don't like to do a weekly meal plan. OK. But be smart enough to not buy more tomatoes than you can use before they get overripe.

Once you get your groceries home, do a quick inventory of the things that will go bad quickly (like raw fruits and veggies). Make sure that you store them properly. Check the settings on your vegetable keeper in the refridge. Consider using the 'green bags' for storing fruits and veggies. Read up on how best to store produce. For instance, we have an article on The Dollar Stretcher on just that subject.

Manage your pantry or wherever you store your groceries at home. Know what you have. It's easy to push items that you don't often use into the back of the shelf and forget about them. But that's not frugal! Keep a list of the unusual items in your pantry. Look for recipes that would consume them. There are many sites on the web that will let you search their recipe database for a specific ingredient(s). One of my favorites is Recipezaar.com. You're bound to find a recipe that will be a family adventure. And, if you can't find a recipe for your family, instead of letting the item go bad on your shelf, give it to a friend or neighbor. Let them use it. Hopefully they'll return the favor some day.

Rotate your pantry. If you want to be able to grab the can at the front, you'll need to put new purchases in the back. Some go so far as to mark on the package when they bought an item so they can be sure to take the oldest one first.

Don't forget to rotate your freezer, too. Most fresh meats will last for months in your freezer. Other items have their own limit for time in the freezer. Know what's in cold storage and look for recipes that will use the older items.

Use your leftovers creatively. I'm not sure when 'leftover' became a dirty word. For the most part they're just as nutritious, just as filling and tasty as the first time out. If your family hates leftovers you're going to need to become an expert in portion control or you'll waste a lot of food.

Fortunately the freezer and the microwave can transform leftovers into a real asset. Not only will you reduce your grocery bill, but you'llspend less time in the kitchen or the drive-thru line at the fast food joint.

At the end of the meal store your leftovers so that they'll be convenient to use. Many families are using leftovers to create their own frozen entrees. They'll take a paper plate and add a portion of each of the items served that night. No need to buy expensive frozen entries from the store. Now you have great meals waiting for you in your own freezer. Smart families stick an inventory of meals under a fridge magnet on the freezer door. Each item lists what's in the meal and when it was prepared. Makes it easy to 'shop' for just the meal you want.

Other families find that leftovers make great lunches. They'll package leftovers to make it easy to put them in school or work lunchboxes. Many lunchrooms have microwaves so it's easy to reheat that special lunch you've brought from home.

Limit the use of restraurants and when you do eat out make use of 'doggie bags'. Most restraurant portions are too big. So unless you want to see your waistline grow, it's foolish to eat everything on your plate (regardless of what your Momma may have told you). But just because you don't want that food to go to your waist, doesn't mean that it has to go to waste! Plan on taking it home. There's nothing high class about wasting food. And, nothing to be ashamed of if you ask for a box to take it home. Just don't forget that it's in your refrigerator and needs to be eaten soon.

So there you have it. Most families can reduce their food bill by 10% or more. Without doing anything drastic. Without depriving themselves. All that's necessary is creating a few new habits. And, that's something that I know you can do.

Keep on Stretching those Dollars!

Gary

Lessons from an Economic Crisis - part 3

Gary — Mon, 27 Oct 2008 12:43:00 GMT

They say that the difference between mankind and animals is that people can pass their accumulated wisdom from generation to generation. If that's so, then it's important that we all learn from the current economic situation. So far we've looked at the bad mortgages in part 1 and what those of us who didn't get a bad mortgage can learn in part 2. In this final part we'll consider some of the public policy lessons we can learn.

Lesson #1 - Government doesn't do well in 'panic mode'. Their first inclination is to throw money at the problem. Whatever it is. Sometimes that helps. But sometimes it doesn't. And, in many cases, it's actually damaging in the long term.

Lesson #2 - Anything that the government gives to one person it has to take from another. The $700 billion for the bailout isn't money that the government just found in a broom closet. They'll have to borrow the money and eventually repay it with your tax dollars. So what's the point? Let's put it into perspective in the current situation. No one likes to see someone lose their home or to find out that their bank has closed. So it's natural to want to bail them out. But, the bailout does have a cost. That's the higher interest rates caused by the additional government borrowing (i.e. you'll pay more for your auto or home loan) and the extra taxes someone will have to pay.

Lesson #3 - The government shouldn't play 'make believe'. Fannie and Freddie let people think that they had full government backing (when they really didn't). It was a game of make believe. Everyone was expected to act as if those mortgages were insured. And, they did. Including not paying much attention to how good the mortgages were. So no one was penalized for writing bad mortgages. At least until now when you and I are picking up the tab.

Lesson #4 - The government has very limited ability to put people into affordable housing. Not that they haven't tried. Rent controls, subsidized housing, encouraging lenders to loosen their lending rules, offering mortgages through FHA. Quite often the result is far different from what was promised by our politicians. Take the current housing problem. The government and greedy mortgage lenders were willing to encourage people to take out mortgages they couldn't afford. The result didn't help people buy homes, it was to put them through a terrible ordeal and leave them with broken credit. So much for 'government help'.

Lesson #5 - The best short-term answer is often not the best long-term answer. Turn back the clock 3 or 4 years. You're shopping for a mortgage and one is offered with zero down payment and low rates for a few years before the rate adjusts. Seems like a good deal. At least for now. But if you made that decision you're probably in trouble today. And even the government bailout isn't going to erase all the damage that's been done. You'll never get those sleepless nights back. Or the arguments with your significant other about money. You will get a chance to raise your credit score, but it'll take years and until then you'll pay higher rates on your credit cards, auto loans or any other borrowing you do (assuming that you can get a loan at any rate).

Lesson #6 - Follow the money. That's how you'll find out who benefitted from the mess that we have today. And (no surprise) some people benefitted from this mess. Some made plenty of money. Let's start with Fannie Mae boss Franklin Raines. Here's how the Seattle Times reported it:

Raines' total compensation from 1998 through 2004 was $91.1 million, including some $52.6 million in bonuses, according to OFHEO.

BTW, the article wasn't about his high compensation. The headline reads: "Franklin Raines to pay $24.7 million to settle Fannie Mae lawsuit" Wonder what your performance report looks like when you're convicted of fraud?

Mr. Raines wasn't alone. Many members of Congress got on the Fannie and Freddie bandwagon. They liked to get in front of the cameras and say that they were pushing for 'affordable housing' (even though the housing they were pushing wasn't really affordable). I'm not saying that they sold their votes, but if you'd like to see how much the politicians got from Fannie and Freddie you'll find the list at OpenSecrets.org . Beyond that some of them even received sweetheart mortgages on their own homes (see Conde Nast Portfolio article) Seems to me that we haven't learned our lesson if we don't vote them out of office.

And, there's corporate greed, too! Countrywide Mortgage founder Angelo Mozilo led his company in writing the so-called 'sub-prime' mortgages. And from 2001 to 2006 he made nearly $200 million! (USA Today 4/9/2008) Guess he won't be worrying about his mortgage payment if this mess throws the economy into a recession!

Lesson #7. Greed is ugly. Whether it's greed for money or greed for power. People who sell themselves for greed should not be trusted. They should be treated as outcasts from reputable society. Let's start with those who created this mess.

Lesson #8. Many people are willing to be fooled. The people who took out these sub-prime mortgages are not all victims. Many of them are not well educated and didn't understand the mortgages they signed. But your financial IQ doesn't have to be too high to question why you're suddenly able to afford much more expensive housing. If all you've ever driven is used Chevy's and suddenly someone offers you a new Caddy for the same money, you know that something isn't right. Especially if they wear a smile and an expensive suit or make their living as a politician!

Lesson #9. The government will avoid responsibility. Congress will hold hearings. But I'd be willing to bet that they don't get to the truth. Not that the truth is hard to find. It's right there for anyone who wants to find it. But those in political power don't want you to know that they were a major contributor to the problem.

Lesson #10. Accountability is important. There's plenty of blame to go around in this mess. And the greed for money and power demonstrated by Raines, Mozilo, members of Congress and others shouldn't be dropped. It is important to hold people accountable. If the CEO's of companies like Countrywide and Fannie Mae did things that were illegal they should be prosecuted. And, if what they did wasn't illegal, then maybe Congress has some work to do. The politicians that set this up should be held accountable, too. Losing their jobs and reputations would certainly be in order. If we don't hold them accountable the next batch of theives will get the message that it's OK to do it again.

You and I have been left with a real mess. And, there's no telling how far the damage will spread. Right now we're wondering whether the world economy is sliding into a recession or worse. It's possible that millions of jobs could be lost before everything returns to something that looks like normal. I don't know about you, but I pray that it isn't too bad and that we learn from the experience so that we don't have to live through it again.

Keep on Stretching those Dollars!

Gary

Lessons from an Economic Crisis - part 2

Gary — Mon, 13 Oct 2008 14:50:00 GMT

Last time, in part 1 we looked at 9 lessons we could learn from sub-prime mortgages. Those lessons centered around the bad mortgages. Fortunately the overwhelming majority of us didn't take out one of the now toxic sub-prime mortgages. But, that doesn't mean that we won't be affected by the economic fallout from those mortgages. And, there are lessons that all of us can learn from this experience.

Lesson #1. You don't need to borrow lots of money just because everyone else does. This seems like the kind of advice that you'd get from your mother ("Just because Billy's mom let's him play in traffic..."). Typically mom's advice was pretty good. It's not so long ago that you and I were listening to people brag about how they bought a house with no down payment. About how they were able to find a lender who could get them the home of their dreams. At times I even wondered if I was so smart to not borrow as much as I could. Thankfully, I chose not to. Even better, most of you chose not to either.

Lesson #2. No job is ever completely secure. There was a time that you could go to work for a big company and pretty much be guaranteed a lifetime of work and paychecks. Not true anymore. Even if your union contract says that they can't fire you. In today's worldwide economy innovation and competitiveness are key to success. So bigger isn't safer. And, a company can look like it's doing well just before it crumbles. Don't get fooled by the fake front. And, union contracts that make it hard to fire employees may just means that it's more likely that the entire business will go bankrupt (study the domestic automakers for more details). Bottom line? You can be a great employee and still find yourself suddenly unemployed (especially if you ignore Lesson #3 below).

Lesson #3. What your employer believes in matters. Your CEO takes a multi-million dollar salary and a bonus besides. Should that concern you? Yes. It points to the fact that the CEO (and presumably their main subordinates) believe that it's ok to take as much as they can from the company. That's the same mindset that approves shenanigans in accounting and treats customers poorly. To put it simply you can't trust people who are that greedy. Especially with something valuable like your future. You may be making a good buck today, but you better have a plan in place in case the roof caves in on the business. (just in case you were wondering I have no use for people like those that lead Fannie, Freddie, Countrywide, or a host of other companies)

Lesson #4. Check your assumptions before borrowing. Any time you borrow money you are assuming that you'll have the future income to pay it back. And, typically that means that you expect to be able to work to earn those payments. So unless you have an emergency fund, you're assuming that you won't lose your job before the debt is repaid. You can choose to live debt free. Or you can recognize how important it is to have an emergency fund. (an FYI: if you say that you can't afford to save an emergency fund that just points out that you're exact the type of person who's most likely to need it in a crisis)

Lesson #5. Debt makes any economic situation harder. In good economic times debt can be managed. Debt is never good, but at least you can keep up with the payments. But, in bad times debt can become a very cruel master. Losing a job if you have credit card debts is especially tough. In just one month things can go from bad to critical. The answer for someone who isn't in trouble today? Pay off any debts (especially credit cards) as quickly as possible. Even if it means working overtime or taking a second job to do it.

Lesson #6. It takes two to tango. You don't have to be a dance partner. A few years ago mortgage companies were climbing all over each other to offer you a mortgage. Even if your credit wasn't so good, or you didn't have a job, or the loan was too big for your income. This won't be the last time that people are willing to lend money foolishly. It will happen again. That doesn't mean that you have to join the dance. Many smart people said "no" to mortgages and other loans that they knew they couldn't afford. Those are the folks who are not losing their homes or counting on a government bailout now.

Lesson #7. We'll all pay for the economic bailout. To avoid panic the government is flooding the market with dollars. That's probably something that they have to do now to keep the panic from spreading. But, all of those new dollars are still subject to the law of supply and demand. We're going to have more dollars chasing the same amount of goods and services. That means that you'll see prices go up. Actually we've already started down that path. The Federal Reserve has been pumping money into the economy for awhile now. Expect inflation to become a problem in the next few years.

Lesson #8. We'll see more bailouts. Bailing out the banks and homeowners is not the end. We'll see more. And why not? We didn't want to let people with a too-big mortgage go under. Couldn't handle letting banks go down. Will we be more willing to get the automakers and autoworkers fail? Or perhaps the airline industry and it's employees? Or maybe whole states (can you say California)? The key point for you and I to recognize is that this isn't over. Not by a long-shot. There is more economic uncertainty to come. Hopefully not as bad as this latest round, but instability none-the-less. It's time to imitate the boy scouts and be prepared! (btw, you'll notice that those who need to be bailed out typically spent money they didn't have or made promises that they couldn't keep)

Lesson #9. It seems foolish to play by the rules. Let's be honest. Some good, hardworking folks who chose to buy a house they could afford are going to be helping pay for someone who bought and financed a house that they could not afford. Your tax dollars are going to be paying part off part of their mortgage. Bottom line? People who chose to live beyond their means are not paying for their mistakes.

Lesson #10. It really is not foolish to play by the rules. Those folks who are getting mortgage help are not out of the woods yet. Their credit score will still be hurt. In trying to keep up with an unaffordable mortgage they were probably late in making credit card payments. That means penalty rates up to 30%. And, most importantly, they didn't learn that it was wise to live within your means. So, they'll probably continue to try to spend money that they don't have. They'll get out of this crisis. But, not the one after that...or the one after that. Sooner or later they'll end up in trouble again. And sometime it won't be politically expedient to save them.

Lesson #11. There are no economic islands. We're all affected by those around us. As the world becomes more complex, it becomes more interdependent. I may not have co-signed on your mortgage, but if you fall behind a number of people will be hurt. It might not be fair, but it is true. And, it means that I need to be even more prepared for the unexpected.

Lesson #12. Smart investors don't panic. It's likely that your 401k has taken a hit (OK, a clobbering) this year. But it was a generation ago that the Dow Jones was at 1,000. Today we're complaining because it dropped below 10,000. So owning shares in American companies is (at least on average) a good thing. If you'll need your money in the next few years you might have to sell now. But, if you won't need it for awhile now is not the time to sell your stocks (unless the company is being run by one of the greedy CEOs - see Lesson #3).

Life is full of lessons. Some are inexpensive and not too painful. That's not the case this time. So hopefully all of us (borrowers, lenders, CEOs, regulators, politicians) will learn a lot from this one. Because if we don't we sure have wasted an awful lot of money and the price next time will be even higher.

Keep on Stretching those Dollars!

Gary

Readers' Digest.com

Gary — Mon, 22 Sep 2008 15:14:00 GMT

It's always nice when The Dollar Stretcher is included in an article on how to save money. It's even better when the article is good. And better still when the article is published in a widely recognized source like Readers' Digest. Just found out that we're mentioned in the section on buying a new car. Lots of good links in the article. I'm sure that you'll find it helpful. You can find it here Get a Great Deal on Anything.

Keep on Stretching those Dollars!

Gary

Count Your Pennies

Gary — Mon, 04 Aug 2008 19:47:00 GMT

We've been busy beefing up our blog offerings here at The Dollar Stretcher.com. Along the way we're also learning about some other interesting money-saving blogs. One of them is called Count Your Pennies <www.countyourpennies.blogspot.com> by JG. It's a relatively new blog, but I admit that I enjoyed my brief visit. I suspect that you will, too.

Keep on Stretching those Dollars!

Gary

Teamwork

Gary — Wed, 18 Jun 2008 18:31:00 GMT

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

Unintended Consequences

Gary — Mon, 09 Jun 2008 20:27:00 GMT

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

Specator Sports

Gary — Thu, 15 May 2008 15:46:00 GMT

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???

Gary — Mon, 12 May 2008 15:10:00 GMT

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

The Psychology of Money

Gary — Thu, 24 Apr 2008 17:40:00 GMT

One part of my job that I really like is talking to people about money. About two weeks ago I had the pleasure of being a guest on the Dr. Howard Gluss Show. Dr. Gluss is a clinical psychologist. I've done quite a few interviews, but this was the first one that focused on the mental aspects of finances. Had a real nice visit with Dr. Gluss. If you've ever wondered what I sound like, or if you just have about 20 minutes for some entertainment, the interview is available here. Look for segment 3 from the 4/15 show.

Keep on Stretching those dollars!

Gary