Stretch-A-Buck

From finance experts comes advice on how to cut your spending and stretch your dollars:

1. Consider dropping your home telephone line.
2. Cut back on trips to coffee shops.
3. Carry cash instead of credit cards. (They say psychologically it's harder to spend cash than it is to use a credit card.)
4. Use the 'envelope system' for groceries, dining out, entertainment, etc.
5. Buy regular gas instead of premium. Most cars don't need premium gasoline.
6. Go to the library instead of the bookstore.
7. Plan your purchases to avoid impulse buying. Take a list with you to the store and stick with it.
8. Take a vacation at home. Check out all the local sites and rediscover your hometown to save on travel and hotel costs.

After discussing this on the air, a listener sent in this advice:

Dear Lou and Liz,

I just wanted to quickly comment on your Stretch a Buck skit this morning. Cash in the pocket for me costs about $20-40 a week!

I find myself buying little things from the vending machine, coffee, or other things that are relatively inexpensive, but add up. These are things I really don't "need" but cost me some serious cash when you add them up. By only using my credit card, I find that I won't charge a small item (less than $2) because it's a little embarrassing for small purchases. As a result I save money on things I don't really "need".

Another good thing about using credit cards are the rewards programs. I put a lot of monthly expenses on my credit card and accumulate points which can be converted into gift cards, which I then use around the holidays as gifts. It works out really well. The key thing is that you have the discipline to know your limit and pay off the credit card in full every month. Otherwise it doesn't make sense.

I drink about 2-4 cups of coffee every day. I purchased a coffee machine with the auto timer so that coffee will be made for me every morning at 6am so I can take it to go. Its another thing that saves me cash in the long run.