The nationwide average for a gallon of gas is around $1.80. That’s incredibly inexpensive compared to gas prices over the last decade. With the exception of one brief period in early 2009, gas prices have been much closer to $4 per gallon.
These low prices are a relief for many families. In families where both parents are commuting, $4 gas can really add up and have a significant impact on a family’s budget. Gas under $2 per gallon provides a lot of breathing room.
Here are five strategies for really taking advantage of those cheaper prices while they last.
Use the saved money wisely. Let’s say you have a car that gets 25 miles per gallon and you drive 12.5 miles to work each day. That means, each day, you burn a gallon of gas. That’s five days a week, 50 weeks a year. Not long ago, you were spending $4 a gallon for gas — now you’re spending $1.50. That’s $2.50 less you’re spending each workday for gas, $12.50 a week, $50 a month, $625 a year.
That’s a couple of car payments. That’s a good start on an emergency fund. That’s a pretty healthy paydown on credit card debt. That money can start making a real difference in your financial life.
The trick is to not allow that money to get lost in the mix. Consciously make a choice to make a $50 extra payment on your credit card bill each month, knowing that the money is coming from cheap gas prices. Put $50 a month into a savings account for a family emergency, or for a down payment on a replacement car if you see the need on the horizon. Turn that cheap gas into a difference-maker in your life.
Drive instead of fly. If you find yourself considering a fairly short trip by air that can be driven in several hours, consider driving instead of flying. While airline tickets have dropped a little during this period of cheap gas, they haven’t gone down much, whereas the cost of driving has dropped significantly.
Obviously, for long trips across the country, driving is time-prohibitive, but for many people who take shorter flights, like Chicago to Minneapolis, the time spent dealing with airports and security and car rentals and so forth can end up eating as much time as simply driving. When that’s the case for you, give driving serious consideration as a travel option.
Top off all of your equipment that uses gas — and refill your gas containers. Most families have lawn mowers. Many families have snowblowers. Some families may have other gas-powered equipment, such as weed trimmers or dethatchers. Almost everyone has a large gas container or two with which to store some gas at home for those devices.
Now is the perfect time, while gas prices are low, to fill up that equipment and those containers. Top off your lawn mower and your weed trimmer with gas, then refill your gas container to the brim. This might use 10 gallons of gas, all told, but if gas prices rebound by $1 between now and the grass-trimming season, you will have saved $10 by simply doing this task today instead of in April.
Plan a road trip. This follows the same philosophy as choosing to drive instead of fly in that driving is substantially cheaper right now, but it can lead to planning a very different vacation.
If you take a road trip, you leave yourself open to a lot of interesting stops and side journeys along the way that are simply impossible if you’re flying. You also add far more flexibility to your travel and avoid the hassle and cost of a vehicle rental when you arrive at your destination.
Buy a fuel-efficient car. In this time of low gas prices, SUV and truck sales are way up and hybrid and fuel-efficient car sales numbers are way down. What does that mean for you? It means that fuel-efficient cars can usually be found at a discount, while trucks and SUVs are much less likely to see sales.
If you assume that sometime in the next several years fuel prices will rebound from these lows, then buying a fuel-efficient car at a discount right now will end up saving you a bundle over the long run. Not only do you get a car that’s aggressively priced right now, you’ll be spending far less on fuel in a few years when prices rebound.
Low fuel prices are a great financial opportunity for everyone. Don’t let this window of opportunity pass you by!
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5 Clever Ways to Take Advantage of Low Gas Prices originally appeared on usnews.com
