How to Stretch a Dollar

Make your money go a long way

As the cost of living increases, many people have to change their spending habits and fear that they will have to give up things they want. With careful planning you can stretch a dollar and make it go farther than it otherwise would. From your necessities to luxuries, you can stretch your dollar and save money for additional spending or the future.

Instructions

1. Track your utility bill during both the summer and winter months. By turning your thermostat down a few degrees in the winter or cutting back on air conditioning during the summer, you can reduce your energy bill. You can also save money on your utility bills by turning off electrical items such as lights and computers and reducing your water consumption by taking shorter showers and turning off the water while you brush your teeth.

2. Maintain your car properly. If you have to commute to work or travel for work, the cost of tires and gasoline can eat into your budget. You can stretch a dollar by ensuring that your tires are inflated properly, cleaning your air filter regularly and replacing oil as needed. All of this will help maximize the lifetime of your car. Locating a gas station with the lowest price near your home or office can also stretch a dollar.

3. Reduce your spending on items at stores that you can find elsewhere or make yourself at lower prices. For example, instead of purchasing a cup of coffee from a coffee shop, you can stretch a dollar by making coffee at home. You can also save money by preparing simple meals at home instead of purchasing meals on the go.

4. Search for lower cost alternatives for entertainment. If you are a movie buff, you can save money on your tickets by going to a matinee show. You can also rent videos and DVDs from most public libraries at no cost, rather than paying for them at a video store

5. Ensure that you are not paying too much for any subscription plans. If you do not use all of the minutes on your cell phone contract, you may be able to save money by signing up for a smaller plan. You may also be able to cut the costs on your cable bill by signing up for a smaller package.

6. Take advantage of any discounts for which you are eligible. Your employer or insurance company may provide discounts at companies such as fitness centers and cell phone providers.

Tips & Warnings

• If you don't know where your money is being spent, you should start by keeping track of all of your expenses for a month. This will let you identify the areas where you may be able to stretch a dollar.

• If you share your checking account or credit card with others in your family, you must all be committed to keeping accurate and up to date records of your spending from those accounts.