You Got A Raise!

In All, Everyday Life by Brian Imrich

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:

  1. Let technology help. Set up an auto transfer from your checking to your savings each month for the equivalent of your gas savings amount.
  2. 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
  3. float away on coffee and an extra bagel every morning.
  4. 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!
  5. Lastly, get in touch with me and I’ll help!