Providing Perspective at the Pump
Sky-high pump prices gotcha down? Don't despair. As usual, Debt Matters is running contrary to the mass media by saying: $3 per gallon gas isn't the end of the world. It certainly doesn't make things easier, but the media tends to inflate the severity. Also, unlike a lot of our other spending, we are acutely aware of gas prices. We buy it every week or so. We see big signs on almost every corner showing the prices. Could we be focusing on gas prices too closely?
Let's put the mania on hold for a moment and look at the math. Start with a worst-case scenario: If you are filling an 18-gallon tank TWICE a week, at $3 per gallon, you are shelling out $108 a week. But, at $2.45 a gallon — which most of us had gotten used to — you were spending $88. So, we're now talking an extra $20 a week and if you're only burning 12 gallons a week in your efficient 4-cylinder, we are only talking about $6.60!
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Don't do this
Don't shop around for gas. This is a waste of time and sometimes money. If somebody is selling gas for a nickel less you'll only save $.90 on your 18-gallon tank, or $.60 on your 12-gallon tank. That's not worth driving out of the way for. It's not worth standing in line for. If you can save a dime a gallon, shopping for gas could save you $8 or $9 a month. But, it's got to be real convenient.
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Paying more is never fun, but $30 to $80 per month is a manageable expense. Besides getting a second job, there are basically two ways to repair your budget. One is to cut your gas consumption. The other is to cut something else.
Where to find some breathing room
in your budget
- Dine out less
- Reduce your entertainment costs
- Bag your lunch
- Quit the gym and jog in your neighborhood
- Shop less
Tips to consume less gas
- Keep your tires properly inflated
- Keep your car properly tuned
- Car pool with somebody just two days a week
- Ride the bus once a week
- Talk to your employer about working from home once a week
- Ride your bike to work once a week (especially if you quit the gym!)
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