Like a lot of wheelers, during the dot.com and real estate boom/bust cycles, I felt like I was the only person not getting rich overnight. I never borrowed my way (“ATM equity”) into the affluent lifestyles it seemed everybody else was enjoying. Instead my goal was getting to the end of the month with bills paid and a small contribution to my vacation/rainy day account. Ironically, with the lingering recession, how to thrive with less is now the new model. Here are some tips on how to be a “dimestore millionaire.”

Housing
The Biggest Slice of the Pie

Housing is the biggest monthly expense. I have found the best way to find the perfect housing situation is networking with friends. In the mid-90s my fiancé and I were looking for a rental house in the expensive and tight San Francisco Bay Area market. We told everybody we knew to keep an eye out for an affordable, livable place. Within a couple of months a rental became available through a friend of a friend — an amazing two-bedroom house, the center being a converted 1800s railroad coach, nestled among multimillion-dollar homes on San Francisco Bay with windows overlooking the Golden Gate Bridge and San Francisco. Best of all, the rent was only a fraction of the going rate — and we got it!

Another key to getting amazing rental deals is having a history of being a good renter. When we looked at the house, both of us brought letters of recommendation from previous landlords. This sealed the deal on our dream rental.

Years later, events led us to the Sierra foothills, a divorce and shared custody of our daughter. This left me looking for a home in 2005 — the peak of the real estate bubble. While everybody else seemed to be buying trophy homes that doubled in value annually, I stayed with what I could afford and ended up in a 680-square-foot, two-bedroom home. I have an affordable fixed mortgage — lower than monthly rent for similar properties in the area — so I don’t give much of a thought to current value (greatly deflated) of my house.

Another tip to scoring a coveted rental — or saving lots of money on a home loan — is a good credit score. If you don’t have credit, ask your bank about getting a secured credit card — you make a small deposit as collateral for the card. Then use the card to build up credit, but use it carefully — only for the amount of cash you have on hand — and pay it off in full every month. I use a frequent flyer mile card for groceries and monthly expenses, but I keep close tabs on the balance and always pay it off. The card earns me an occasional free airline ticket to a dream destination. By carefully using and paying off the card — even though I have a small income — I have a stellar credit score.

If you are a homeowner, be sure to ask about disability related property tax deductions. “In Alabama, property tax is waived if you have a permanent disability,” says Janet McAlister of Huntsville, Ala. Florida also offers a property tax break. “Although paras might not think it’s fair, Florida gives a 100 percent property tax exemption — regardless of income — to any quad homeowner savvy enough to look for it,” says Alan Troop. Deductions vary from state to state — the key is to ask.

If your monthly income is less than 50 percent of the median income in your area, check out the Housing Choice Voucher program — formerly Section 8 housing — provided by the U.S. Department of Housing and Urban Development. You may qualify for a housing subsidy.

With a voucher the family must pay 30 percent of its monthly adjusted gross income for rent and utilities, but the exact amount depends on a payment standard determined by the public housing agency. Vouchers can also be used as mortgage payments to purchase a first home. The caveat is the waiting lists often take years, and many lists close because the wait is so long. First, see if the voucher list is open in your area, and get on the list if you qualify. To find out more, contact your local public housing agency or your local HUD office.

Utilities
How to Save
Many utility companies offer disability and/or low-income discounts. Low-income discounts usually require filling out financial forms and providing a copy of your most recent IRS return. Disability discounts for utilities generally require a form signed by your doctor authenticating your disability and “a reason the disability requires more energy.” I wrote that as a paraplegic I had trouble with thermoregulation and require heating and cooling for a room temp of 75 degrees, and I got the discount.

Many disability discount programs offer energy efficiency audits. In my case this meant the company checked and replaced window and door seals, insulated the attic, and replaced all of my lights with energy efficient bulbs — for free! Amazing — those simple measures knocked about 20 percent off my monthly energy usage.

The small size of my house, combined with the utility discount, results in energy bills around $75 during peak months. My friends who have larger homes have utility bills that run in the $400 range.

A side benefit of living in a small house is it puts the brakes on impulse buying. I don’t have room for any more “stuff,” so if I want to make a purchase, something else is going to have to be sold (Craigslist!) to make room in the house.

Food
Stretching Your Budget & Recycling
Food is another expense that offers dollar-stretching options. Until recently I was addicted to the “wheelchair-user convenience” of fast food drive-through windows. An expanding middle-aged waistline and concern for healthy skin and avoiding pressure sores convinced me to start cooking at home — and eating more vegetables. When I see chicken or fish on sale, I stock up and put it in the freezer. I’ve found whipping up a big wok of stir fry or a pot of stew makes quite a few meals — and is shrinking my monthly food budget, along with my waistline.

Clipping coupons and looking for bargains is another great dollar stretcher. Dara Nickerson, a double below-the-knee amputee, is a mother of two. “I’m a coupon clipper, proud to be cheap,” she says, “and my husband loves it!” She has been known to save $20 per grocery store visit. She uses coupons for rebates when shopping for her kids. She loves to tell the story of the time she purchased a $19.95 Toy Story video.  By the time she had finished wheeling and dealing with the coupons and rebates, she bought the DVD and had made a $7 profit!

We all know recycling is good for the planet, but it turns out it is good for the wallet as well. In many states you pay a “recycle value” between 5-10 cents for every bottle or can you purchase. So it makes sense to put them in recycle bins and cash-in at the local recycle center.

When it comes to cash back for recycling, the list of acceptable items is growing. Many grocery stores give a “per bag” discount for shopping with reusable grocery bags, and many office supply stores offer discounts or cash back when you recycle empty toner cartridges. Recycling for a quarter or two here and three bucks there can add up quickly.

Getting Around
Transportation Costs
“When it comes to transportation, buy used when possible and keep up the maintenance,” advises Diane Mettam of Bishop, Calif. “My ramp van is 11 years old and paid for. To save money — and a long drive to the lift dealer — my husband services the ramp in between dealer visits.”

I’m on the same page: I drive a boring 1995 Ford Escort Wagon that gets 30 mpg. It is much cheaper to get a word-of-mouth recommendation for a local mechanic than pay top dollar to a dealership for maintenance. In addition, since my car is worth so little, I save money by not carrying comprehensive and collision on my insurance.

An expense I do recommend for drivers is an AAA membership. It pays for itself the first time you need a jump, a tow, or you lock your keys in the car. In addition, there are AAA discounts on everything from entertainment and attractions to hotels and shopping.

This year I turned 50 and now qualify for another dollar stretching tool, an AARP card (gulp!). The myriad of discounts I get with the card far outweighs the $16 membership fee and the constant ribbing I get from my wet-behind-the-ears friends.

Staying Connected
Internet & Communications
Last but not least on the monthly expense list is my never-ending battle to keep my cable TV, cell phone, land line and Internet costs under control.

I make it a point to call customer service on a fairly regular basis and ask for discounts or special offers. More often than not there is some type of promotion available to current customers that is only promoted to new customers, like “three free months of premium movie channels” or “six months of faster DSL for the same price.”

A quick and efficient shortcut to use when “customer service” can’t seem to straighten out a question is to politely ask to be transferred to someone in the cancellation department. The folks who work in “customer retention” seem to have magical powers to quickly straighten out billing errors — and find all kinds of discounts and special offers.

When it comes to cable TV, more and more of my friends have dropped it all together and watch free TV on their computers via Hulu. Or they get DVDs by mail, and TV and movies online through Netflix. Every month when I pay my cable bill, I’m tempted to change, but haven’t been able to beat the cable addiction yet.

It turns out one of the advantages of learning to survive and thrive on a small income is unlike people who made and lost fortunes during the boom and bust cycles, I’m still chugging along. Or as a friend of mine says, “At the end of the month when the bills are all paid, I’m not putting millions in the bank, but I am putting hundreds in the bank.”

These days that is a pretty good place to be.

Resources
AAA, www.aaa.com
AARP, www.aarp.org
HUD Housing Choice Voucher Program, www.hud.gov/offices/pih/programs/hcv/about/fact_sheet.cfm
HUD Home Ownership Vouchers, www.hud.gov/offices/pih/programs/hcv/homeownership
Hulu (Television and movies), www.hulu.com
Netflix, www.netflix.com
Recycling, www.earth911.com
Recycling computer, electronics and appliances; www.brighthub.com/environment/green-living/articles/23166.aspx