Imagine that you are taking a picture on a bridge with your iPhone. You drop it and you are out $200. You have three choices to prevent this from happening. 1, don't take pictures on bridges. 2, put down $15 for a danglet http://www.collinsamerica.com/page4/page4.html Or 3, you could make your own wrist strap for less.
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Step 1: Getting All the Stuff
All you realy need is an iPod locking dock connector, it needs to be the locking kind (I found one at a computer hardwear store for $3) or if you have one just laying around collecting dust you can use that. You will also need a wrist band ( I used one of the old wii mote straps. Plus it tightens around your wrist so it doesn't fall off). Tools that you will need include a drill, drill bits, and wire cutters.
Step 2: Cutting the Cord
the first thing that you need to do is cut the cable from the dock connecter. cut the wire off just after the rubber part at the end of the connecter. (its easier to remove this rubber part after yo cut the cable)
Step 3: Drilling a Hole
Next, drill a hole about 3-5 mm (use your judgment) away from the bottom of the connecter (side without logo or words). the hole should be a little smaller that double the size of the wrist strap that you are going to be using. be careful when drilling because you will be drilling through plastic and the metal that is inside of the connector. also be sure to use needle nose pliers to get all the wiring out. if you dont you risk the chance that the wires will touch and drain your battery. (you will know this if your ipod gets really hot at the bottom)
Step 4: Finishing Touches
This next step is optional but makes it look better. Round off the edges with a file. now you can insert the wrist strap and connect to you ipod / iphone.