How much do you spend on gas over a 12 month period? If you know, you are unusual. As the price of gas increases so has your yearly gasoline cost. Gasoline has become one of the major components of your family budget. In order to maintain a proper family budget you really need to know how much you are spending for gas during the year. Most drivers are familiar with the amount of money it costs to fill the car but few can state with certainty the total spent per year.
By Scott Siegel
How much do you spend on gas over a 12 month period? If you know, you are unusual. As the price of gas increases so has your yearly gasoline cost. Gasoline has become one of the major components of your family budget. In order to maintain a proper family budget you really need to know how much you are spending for gas during the year. Most drivers are familiar with the amount of money it costs to fill the car but few can state with certainty the total spent per year.
It is easy to figure out and only takes a few minutes. That being the case one would think that most drivers would take the time to work the calculations and determine their annual expense. But most don’t. If they did they might realize how important it is to their financial health to do something about it.
We see it almost every day, the increases to the price of gas. $3.00 per gallon, $3.19 per gallon, $3.39 per gallon even $3.49 and $3.59 per gallon are prices that we have become familiar with this year. Not too long ago $3.00 per gallon seemed high. Now $3.00 seems almost a bargain.
The American Automobile Association uses 15,000 miles as an average amount of miles traveled per vehicle when they calculate costs. If you on average travel 15,000 miles a year in a vehicle that runs at about 20 miles to the gallon, you will purchase around 750 gallons of gasoline per year. If the price is $3.00 per gallon that equals $2250.00 per year.
If you are a two car family averaging 15,000 miles per car you will use 1500 gallons of gas per year. 1500 gallons at $3.00 per gallon equals $4500.00 per year.
If the price of gas is $3.49 per gallon of course the results are significantly higher. If you are a one car household utilizing 15,000 miles per year you will have an expense of over $2600.00 annually. If you are a two car family your yearly costs will be over $5200.00 annually. That equates to $437.00 monthly. You are likely spending more for fuel than you spend on a car payment.
Each time the price of gasoline goes up at the gas pump by 10 cents the annual increase for your two car household is $150.00 per year. When the price jumps 20 cents in one day, realize that the 20 cent increase will cost you $300.00 per year.
When you consider the yearly cost of your gasoline it is staggering. When you consider that you may be spending $5200.00 per year just for gas it could well be time to seriously look at ways to lower that cost. As you figure out the 20 cent increase at the pump today will really cost $300.00 this year it becomes a great motivator to do something about it.
Scott Siegel is the author of a 143 page manual of industry insider information on saving gas and dollars at the pump (beatthegaspump.com). Visit us to learn how you can get better gas mileage. Find out how to increase gas mileage.
Showing posts with label saving. Show all posts
Showing posts with label saving. Show all posts
Thursday, December 10, 2009
Tuesday, December 1, 2009
Saving is Something You Should Do Everyday
Americans have forgotten how to save in recent years.
By Jason Zweig, Wall Street Journal
First, we came to regard the stock market as our piggy bank; if we needed a little spending money, surely we could always sell a few shares of stock or a bit of a mutual fund at a profit. Then, we viewed our houses as money machines that would always provide a surplus of cash on a moment's notice, since real estate "never goes down in value."
All that has changed, at least for now. People finally have again realized how important it is to save. After all, thrift was once one of the quintessential American virtues: Just think of Benjamin Franklin intoning, "A penny saved is a penny earned."
Our ancestors knew what we had forgotten until recently: Unless you save, you cannot make your wealth grow. It's much easier to tell ourselves that our horse will come in at the racetrack, or that we will win the lottery if we just keep playing 4-7-10-14-36-51, or that some stock we heard about online is the next Google, or that we can simply use our credit cards to buy whatever we feel like today and pay it all back tomorrow...after our horse comes in at the racetrack.
But Benjamin Franklin was right when he wrote: "Human felicity is produc'd not so much by great pieces of good fortune that seldom happen, as by little advantages that occur every day."
And the biggest of all "little advantages that occur every day" is the simple act of saving money. That, in turn, requires you to become more mindful of where your money goes and why, and whether you are spending it wisely and saving enough.
Here are a few simple ways you may be able to raise your own rate of saving. Each will save you something; together, they will save you a lot.
Drive more efficiently. Driving at 55 miles per hour, instead of 70, will save you the equivalent of roughly 70 cents a gallon, which could easily put hundreds of dollars a year into your pocket.
Before you start your car, get your kids seated and belted and do all your other preparations for driving. This will save you a few minutes' worth of gasoline usage every day. And don't idle your car; if you know you will have to wait more than a couple of minutes, turn it off. For more tips, see fueleconomy.gov.
Conserve energy. Set your home's thermostat to 65 degrees in winter and wear a sweater. Before you go to bed, set it down to 60 degrees and use a second blanket if needed. In summer, set the air conditioning at 70 degrees. Adjusting your home thermostat wisely could save hundreds of dollars annually.
Also make sure your home is properly insulated and that windows, doors, chimney and the basement are properly sealed. Here, too, the annual savings can be in the hundreds of dollars. For more advice on saving on fuel bills, see energysavers.gov.
Walk or bike to work. If it's feasible, walking or biking, instead of driving or paying for a bus or train, could save you $5 a day, $25 a week, $1,250 a year.
Don't buy lunch every day. Instead, make and take your lunch to work. Better yet, pull together a brown-bag club with a few friends, with each of you bringing your own food plus something to share. You could save another $1,250 a year.
Cut back on dining out. Take a cooking class. You will acquire skills and recipes that you can use to make better food in your own home than most restaurants serve -- and you will be able to make it for a fraction of the price.
According to the U.S. Bureau of Labor Statistics, the typical American household spends $6,133 a year on food, 44% of it on meals eaten outside the home. When you do go out, don't be afraid to skip an appetizer, share an entrée or split a dessert. Always inquire how much the specials cost. (Specials are typically no better than regular menu items, but they tend to be more expensive.)
Don't order the second cheapest wine on the list, as many people do to avoid embarrassment. Instead, unabashedly order the cheapest one. It's usually almost identical in quality.
Quit smoking. With cigarette prices at roughly $5 a pack, someone who smokes two packs a day could burn through $70 a week, or more than $3,600 per year. Smoke like that for 20 years and, if you are still alive, you will have spent roughly $75,000.
Rent DVDs free from the library. Depending on how often you rent, you could save $100 or more a year.
Put your refrigerator on ice. Before you open the refrigerator, pause for a moment to see if you can move several things in or out at once. Every time you open the door of the fridge, you make it work harder. My guess is that a family that becomes more mindful about opening the fridge can save about 50 cents a week, or $25 a year.
Don't shop on an empty stomach. Walking into the supermarket when you are hungry can make you more inclined to buy food you don't really need. Eating a light, nutritious snack before shopping could easily save you $ 100 a year, not to mention several hundred calories a week.
Don't sign up for insurance, service contracts or extended warranties. Avoid the added cost of these extras for appliances and consumer electronics -- especially on things like cellphones, which you probably won't lose or damage and are likely to use for only a couple of years.
Manage credit-card spending. Pay with cash or checks when possible. Credit cards are essential for a few things, such as online purchases, car rentals and airline tickets. But you can do fine without them most of the time.
And ignore the minimum payment on your bill. You should be paying the maximum you can afford. If the minimum payment is $20, but you owe $774.84, see if you can pay $200 (a little more than 25% of the balance) or even $80 (about 10%).
Also, if you can find a credit card with a better rate somewhere else, switch. You can compare rates at federalreserve.gov/Pubs/shop/survey.htm and at bankrate.com.
These are only a few ideas for economizing. You will have others, many of which will be better than mine. Send your favorite suggestions on saving to intelligentinvestor@wsj.com.
By Jason Zweig, Wall Street Journal
First, we came to regard the stock market as our piggy bank; if we needed a little spending money, surely we could always sell a few shares of stock or a bit of a mutual fund at a profit. Then, we viewed our houses as money machines that would always provide a surplus of cash on a moment's notice, since real estate "never goes down in value."
All that has changed, at least for now. People finally have again realized how important it is to save. After all, thrift was once one of the quintessential American virtues: Just think of Benjamin Franklin intoning, "A penny saved is a penny earned."
Our ancestors knew what we had forgotten until recently: Unless you save, you cannot make your wealth grow. It's much easier to tell ourselves that our horse will come in at the racetrack, or that we will win the lottery if we just keep playing 4-7-10-14-36-51, or that some stock we heard about online is the next Google, or that we can simply use our credit cards to buy whatever we feel like today and pay it all back tomorrow...after our horse comes in at the racetrack.
But Benjamin Franklin was right when he wrote: "Human felicity is produc'd not so much by great pieces of good fortune that seldom happen, as by little advantages that occur every day."
And the biggest of all "little advantages that occur every day" is the simple act of saving money. That, in turn, requires you to become more mindful of where your money goes and why, and whether you are spending it wisely and saving enough.
Here are a few simple ways you may be able to raise your own rate of saving. Each will save you something; together, they will save you a lot.
Drive more efficiently. Driving at 55 miles per hour, instead of 70, will save you the equivalent of roughly 70 cents a gallon, which could easily put hundreds of dollars a year into your pocket.
Before you start your car, get your kids seated and belted and do all your other preparations for driving. This will save you a few minutes' worth of gasoline usage every day. And don't idle your car; if you know you will have to wait more than a couple of minutes, turn it off. For more tips, see fueleconomy.gov.
Conserve energy. Set your home's thermostat to 65 degrees in winter and wear a sweater. Before you go to bed, set it down to 60 degrees and use a second blanket if needed. In summer, set the air conditioning at 70 degrees. Adjusting your home thermostat wisely could save hundreds of dollars annually.
Also make sure your home is properly insulated and that windows, doors, chimney and the basement are properly sealed. Here, too, the annual savings can be in the hundreds of dollars. For more advice on saving on fuel bills, see energysavers.gov.
Walk or bike to work. If it's feasible, walking or biking, instead of driving or paying for a bus or train, could save you $5 a day, $25 a week, $1,250 a year.
Don't buy lunch every day. Instead, make and take your lunch to work. Better yet, pull together a brown-bag club with a few friends, with each of you bringing your own food plus something to share. You could save another $1,250 a year.
Cut back on dining out. Take a cooking class. You will acquire skills and recipes that you can use to make better food in your own home than most restaurants serve -- and you will be able to make it for a fraction of the price.
According to the U.S. Bureau of Labor Statistics, the typical American household spends $6,133 a year on food, 44% of it on meals eaten outside the home. When you do go out, don't be afraid to skip an appetizer, share an entrée or split a dessert. Always inquire how much the specials cost. (Specials are typically no better than regular menu items, but they tend to be more expensive.)
Don't order the second cheapest wine on the list, as many people do to avoid embarrassment. Instead, unabashedly order the cheapest one. It's usually almost identical in quality.
Quit smoking. With cigarette prices at roughly $5 a pack, someone who smokes two packs a day could burn through $70 a week, or more than $3,600 per year. Smoke like that for 20 years and, if you are still alive, you will have spent roughly $75,000.
Rent DVDs free from the library. Depending on how often you rent, you could save $100 or more a year.
Put your refrigerator on ice. Before you open the refrigerator, pause for a moment to see if you can move several things in or out at once. Every time you open the door of the fridge, you make it work harder. My guess is that a family that becomes more mindful about opening the fridge can save about 50 cents a week, or $25 a year.
Don't shop on an empty stomach. Walking into the supermarket when you are hungry can make you more inclined to buy food you don't really need. Eating a light, nutritious snack before shopping could easily save you $ 100 a year, not to mention several hundred calories a week.
Don't sign up for insurance, service contracts or extended warranties. Avoid the added cost of these extras for appliances and consumer electronics -- especially on things like cellphones, which you probably won't lose or damage and are likely to use for only a couple of years.
Manage credit-card spending. Pay with cash or checks when possible. Credit cards are essential for a few things, such as online purchases, car rentals and airline tickets. But you can do fine without them most of the time.
And ignore the minimum payment on your bill. You should be paying the maximum you can afford. If the minimum payment is $20, but you owe $774.84, see if you can pay $200 (a little more than 25% of the balance) or even $80 (about 10%).
Also, if you can find a credit card with a better rate somewhere else, switch. You can compare rates at federalreserve.gov/Pubs/shop/survey.htm and at bankrate.com.
These are only a few ideas for economizing. You will have others, many of which will be better than mine. Send your favorite suggestions on saving to intelligentinvestor@wsj.com.
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