Gas prices have given most consumers the biggest raise they’ve scene in the past 8 years. So where has that money gone?
In the summer of 2008 the national average for the price of gasoline was over $4.00 per gallon. As I sit here writing this post some seven plus years later, that price sits below $2.00 per gallon. If you’re anything like me, you drive a lot. And you probably spend a lot more on gas. But how much? I get 25 miles per gallon and drive 25 miles each way to work. In one five day work week, back in 2008, I was using two gallons of gas per day, 10 gallons per week or $40 in gas. Today, I enjoy the same commute, but smile a little more often as the price has dropped to a mere $20 per week.
I got a raise, without even realizing it.
If I got a real raise, from work, I would have thought about how to spend that money. But that extra gas money has just appeared in my pocket. Where is that extra $20 per week? Has it made its way back up stream to my savings account? Has it graduated from my wallet to my dearest charity? Has it nestled in for a nice long stay inside of my Roth IRA? Is this raise permanent? Probably not. But for now, let’s do something meaningful with this savings opportunity!
Next steps here:
- Let technology help. Set up an auto transfer from your checking to your savings each month for the equivalent of your gas savings amount.
- Don’t save it, but spend it on something real. Identify the monthly savings and put it towards your next vacation, next experience, a great anniversary or holiday gift for someone. Don’t let it
- float away on coffee and an extra bagel every morning.
- Think long term. If your investments grow at only 4.72% a year you can “buy” two dollars 15 years from now for the cost of just 1 dollar today!
- Lastly, get in touch with me and I’ll help!