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Thursday, September 9, 2010

Fun with Numbers- Driving & Gas prices

As you can see from previous postings, one thing 'A&G' really strives to do, is to show ways a person can save money without really having to change their lifestyles in any dramatic fashion.  I felt this was something important to stress mainly because really no other financial site or blog takes the time to do this, and I observe so many who are stressed for money and how that affects them emotionally and psychologically.  'A&G' will never give financial advice or tips as to how to be a millionaire or best places to invest money.  The internet is full of websites pushing get rich quick schemes and investment traps (Wall St. Journal is a good place to start).  Here at 'A&G', the focus is and always will be on individual empowerment and control of one's buying choices.  That said, lets move on to the focus of this posting.. how to save $$ on gasoline.

There's many obvious ways a person can save money on the price of gas..  find the cheapest gas station, get lowest grade gas (assuming vehicle doesn't require premium),  buy a more fuel efficient car, use public transportation, etc...    All is well and good..  But I will focus instead on the cost differential per year if you drive just a tiny bit less.

Let us say it costs $45 to completely fill your tank and is done like clockwork every 7 days.  Over the course of a full year, your gasoline expense come to $2,340.   Now, let's assume you can cut back on non-essential driving just enough to stretch the length of time between gas station visits to 8 days instead of 7, and do this for a full year, that is 45 trips to the gas station vs 52 trips, and your total gasoline expense equals $2,053. That is a savings of $287 over a full calendar year which is in your pocket, not the gas station's.

To end this post, I want to try to tie in previous postings to show how much $$ a person can save by making minimal cutbacks in one's lifestyle that does not dramatically or adversely affect the quality of life in doing so.

Yearly Savings:
*  $287.00 -     Getting gas every 8 days vs. 7 based on $45 per tank
*  $166.50 -     Cutting back smoking by 2 cigarettes/day to 18 vs a full pack of 20
*  $134.68 -     Choosing water instead of soda ($2.59) when dining out once/wk.
*  $104.00 -     Tips - $40/meal dining out- afternoon vs evening (15% vs 20%)

    $708.36  -   Yearly Savings ~    What would you do with an extra $708.36?

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