Most Average Americans find it near impossible to predict how much gas they will have to buy over the course of a month, and it’s easy to see why.
Here are our handy tips and tricks to help you stay on top of your gas spending and budget for your monthly travel expenses.
Track How Much You Currently Spend On Gas
Before you can try to cut down on your gas usage, or work out your monthly needed budget for gas, you should keep a record of what you currently spend on it for a month or two.
With the cost of gas always changing and the amount of the average American’s household budget going on fuel costs, it can seem impossible to come up with a budget plan.
But there are some things you can do to track your spending and make sure you can afford your annual gasoline cost.
Every time you fill up your tank, keep a note of your receipts and track your spending amount in a notebook, in your bank account, or a document app on your phone.
Even if you are only getting a small top-up, write down every dollar that you are spending on gas over the course of the month, as you may be surprised at the actual account balance that you spend on fuel.
If you do this for 2 or three months, you should be able to find a median amount of what you are currently spending on your gas.
This is the average amount of money you spend per week on gas.
If you are spending more than $50/80 a week on gas, then you might want to consider cutting back on your driving habits and on your monthly usage if possible.
You may also want to take a look at your local auto dealership to see if you can get a car that is more fuel-efficient.
The price of a gallon of gas is of course always changing, so it can be hard to create a monthly budget that reflects these fluctuations in price.
With the price per gallon constantly changing, all you can really do is look at current rates month to month when creating your budget plan.
What Is The Average Spending For Gasoline?
For most households, transportation costs are almost equal to what’s spent on rent ($9,000) or the direct costs of owning a house ($9,000).
Obviously, this cost includes not just gas but also insurance, maintenance, and various other car-related expenses. But, it is worth noting how much running transportation can cost the average American home.
Of course, not all US citizens run cars, but of those that do, the average American spends a rough estimate of nearly $3,000 per year just on gasoline.
That’s a huge amount, and it can catch you off guard. The average cost of gas per month for an American household is around $250.
Can You Afford What You Are Spending On Gas?
Now that you have a rough estimate of what you are spending over the course of the month of gas, it’s time for a budget review.
Looking at your current income and outgoing expenses (your non-negotiables such as bills, cell phone, car costs, rent, or mortgage), can you afford what you are currently spending on gas for the month?
If you can afford your current expenses, then make sure you allow yourself to have that amount of money ready and set aside specifically for your gas.
When making your gas budget, also take into consideration that the current gas rate will probably rise.
You should factor this into your gas budget, and make sure you are constantly adjusting it according to monthly increases so that you never get caught out!
Unexpected Costs
It’s a good idea to have a think in advance about any unexpected rises in your gasoline usage. Maybe you need to buy new tires, or maybe you need to replace a part of your vehicle.
Whatever the reason, having a bit of extra cash available will help you deal with any unforeseen issues.
If you’re still struggling to come up with enough money to cover your gas bill, try looking for ways to cut down on your usage. Perhaps you could walk or bike to work instead of using your car.
Or perhaps you could use public transport rather than drive. These options may seem like they won’t save you much money, but they’ll definitely help you reduce your overall consumption.
Not only can the price of gasoline rise, but your needs can change quickly. Perhaps you are going on a longer journey than normal in a few months?
Plan for it in advance by working out what your gas usage is likely to be over that extra journey and making sure you have the money set aside for it when the time comes.
By preparing for these instances in advance, you can save yourself stress and anxiety later on down the road.
What Can You Do To Lower Your Gas Budget?
The best way to lower your gas usage is to simply start driving less. If you don’t need to go anywhere, why would you want to spend money on fuel?
This doesn’t mean you should stop taking trips altogether, but it does mean that you shouldn’t feel pressured to go somewhere every day.
Instead, plan ahead and decide where you’d like to go. Then, once you’ve decided where you’d like to travel, see if there are alternatives to getting there.
Public transport is often cheaper than driving, and even walking can be more economical than a car trip.
Another thing you can do to reduce your gas usage is to look into other forms of transportation. For example, if you live near a train station or bus route, why not use public transport?
You may also consider investing in a bike or an electric scooter.
Finally, if you really want to cut back on your gas usage, you can always switch to a smaller engine vehicle.
Although this isn’t necessarily the most cost-effective solution, it can certainly help you to save some money in the long term.
Have a look at how fuel-efficient your car is and whether you really need to be spending as much as you are on gasoline monthly.
Final Thoughts
In conclusion, it’s important to remember that while we all love our cars, we mustn’t forget that they aren’t free. It’s not just petrol that costs money; you also need to pay for repairs and maintenance.
By planning ahead, you can ensure that you have the funds available to take care of any problems that arise. And if you do run into trouble, you’ll be able to get the help you need without worrying about paying too much.
By coming up with a monthly budget, you can be aware of what you are spending and how you can shave off a few dollars when you need to.
Financial Disclaimer
This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.
The investing information provided on this page is for educational purposes only. compundingstacks.com does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities.
The owner(s) of this blog is compensated to provide opinion on products, services, websites, and other topics. The owner(s) may be compensated if you click on a provided link and purchase or sign up for a service. Any product claim or advice about a product or service should be verified with the manufacturer, provider, or party in question. Copyright Compounding Stacks © 2022
Everyone wants to make more money - but how many people actually put the time and effort into researching how to do this? Not many. The fact that you are here on my website right now proves that you are one of the few who actually has what it takes to invest their money correctly to get the most back.
- Is Coinbase Safe For Beginners? - March 25, 2022
- Are Penny Stocks Good For Beginners? - March 25, 2022
- Why You Shouldn’t Save Your Money In A Bank? - March 25, 2022