Repairing a budget
that's been trashed by gas prices
The price of gas has gone up 50% in a year. What does that really mean? It depends on how much gas you use, but those who spent $30 to fill the tank last year, are now spending $45. At one tank a week, that's a $780 annual increase. That can be a big, big chunk of a household's disposable income.
If you're having trouble saving or making ends meet as it is, the best thing to do is to start saving somewhere else. Here are a few ideas to recoup funds in other areas that you may have lost at the pump.
Bundle up. If you buy life insurance, homeowner insurance and car insurance, consider bundling it all with the same company for some savings. If you already buy them all through the same company, ask for a discount or you'll be shopping around ALL your policies.
Raise your deductibles. While you're on the phone with your insurance company ask them what kind of annual savings you get by raising your deductibles. Raise them to whatever you could reasonably pay in a disaster.
Cut your own kids' hair. Assuming your kids aren't fashion conscious yet, a lot of money can be saved by cutting their hair. There are books on how to give children haircuts at the library. And if you have two kids, doing it yourself will save at least $20 a month. You say a barber can do it so much faster? Keep in mind, this way you don't have to spend time (and gas!) driving to the barbershop. It should be a wash in terms of time … and big savings in terms of dollars.
Make coffee at home. Where you buy the fuel you put in your car won't fluctuate much, where you buy the fuel you put in your body matters a lot. Buying coffee at a coffee shop is like buying gas at $30 per gallon. You wouldn't do that no matter how convenient it was. Break the habit by buying good coffee for home and getting a thermal travelers mug to have coffee on the go. You'll create less garbage with a re-usable mug and you won't have to drive a block out of your way to the coffee shop.
Pocket your raise. If you and your spouse work, that usually means your household will see a raise in the next six months. When your raise comes in don't spend it. You've probably already spent it on gas. Instead, when the first check comes in, whatever the difference in the net, cash it and put it in a coffee can. Then if your budget starts getting hard to maintain because of the increased expense of gas, you'll have some money saved to pay a couple bills and buy a couple more months. If you do all of these things mentioned and look for other ways to save, you may never "feel" the gas price pinch.
