Posted on 03/31/2011 1:05:48 PM PDT by CSM
You've probably noticed that gasoline prices have gone up 13% in the last month. Since most of us are used to daily commutes, running the kids here and there and visiting friends and family, this price increase is affecting us both at the pump and in what we pay for other goods and services.
"But there's nothing I can do," some say. Dave says, "Oh, yes there is!"
It's time to revisit the budget.
Most people feel like they've crunched their budgets as much as they can. But how much is your car payment? How much is your monthly cable or satellite bill? Is the Starbucks drive-through a regular stop on your morning commute?
This may be tough to hear, but new cars, cable and Starbucks are luxuries, not necessities! You can easily survive with a used (and paid-for!) car, no cable reality shows and coffee made at home. Just think of all the money you could use to pay off debt and beef up your gasoline budget if you simply did those three things!
An algebra teacher and Dave fan in Michigan sent in an interesting email on this topic. She wrote:
Dave, I often give my math students this calculation to figure out. A typical latte costs $3.59 for 16 oz. That's 22 cents per ounce or $28.72 a gallon! Ask your listeners if they've drank a gallon of latte lately!
Wow!
First Things First
You must remember that there is a difference between needs and wants in life. The first items in your budget should be your needs: shelter, food, transportation, clothing and utilities. If you currently go to the movie theater every weekend or have a Hawaiian vacation at the top of your list, but you struggle to pay the electric bill, then your priorities are out of wack. Don't sacrifice your needs to finance your wants. If you do, it will catch up with you and you'll regret it.
Plan Ahead
You can also strategically plan ahead while running errands and commuting to work. If you go to the grocery store twice a week, reorganize your list so you only have to go once a week. If you have a lot of errands to run, plan your route ahead of time so you're not retracing your steps around town. You could also organize a carpool with some of your coworkers who live near you.
It's anyone's guess where gas prices will end up, so have a Budget Committee Meeting right now to see where you can free up some money and keep your family from feeling the pinch.
My favorite are the folks that are complaining about the price of gas while they are dropping a $20 on lottory tickets.
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I just paid my last car payment!
Next car will be cash only and used.
Dave’s plan works for us.
Woo Hoo! Good job, keep it up.
How many times are these supposed financial geniuses going to tell people to cut the Cable Bill? You can only turn it off once.
Congratulations. Getting the car paid is one thing but making a change of life style is terrific.
how many times are these supposed geniuses going to tell people to cut that cable bill...
I know several people that have not got that message yet-I think of one couple that have a wide screen tv- are always scrambling to meet the most basic expenses.
And no- they likely will not ever figure it out.
I’ve go tot pay off the boat and the house (both gone by 5/18) and then I’m free. I’m doing some repairs/upgrades on the house now (siding) and paying as I go. It may look a little funny for a bit but it doesn’t add any debt!!
BTW, I absolutely love your username and signature. Way back when I used to play D&D the towns’ librarians were ALWAYS named Conan.
For those that know me personally fully understand that the most dangerous place in the world is between me and a coffee pot.
I’ll walk to work before I give up my Cup o joe!
Having no car payment is great - I haven't had one in several years.
My friend up in Ohio went through almost a year of unemployment. Fortunately, prior to being laid off, he paid off his truck. The lack of a $400+ payment each month was instrumental in him keeping his head above water.
Stupid drooling idiots watching Obama Tv getting brainwashed in HD. It is said that the corrupt govt keeps bailing losers out including the big banks.
I know what you mean.
I know a woman, married, 4 kids, 2 teens 2 preteens, all 6 have cell phones, just got satellite, and can’t make their house payments...on a deal they got for house for clunkers...after having had vehicles repossessed...
“Dave, I often give my math students this calculation to figure out. A typical latte costs $3.59 for 16 oz. That’s 22 cents per ounce or $28.72 a gallon! Ask your listeners if they’ve drank a gallon of latte lately!”
I seriously hate that example.
You dont drill for coffee and have millions of barrels of the stuff for sale. Nor is coffee used to fuel billions of cars, trains, ships and airplanes.
ML/NJ
FYI, we did the same last year and then cut the car payment in half and put half towards a future car fund and half back towards the family budget. When you need another car, you get your trade in value plus the cash you carry. Just an idea.
Because most folks don’t listen and still have it on while going to bankruptcy.
I work with a lot of folks who complain about money but can’t, no-make that won’t, cut back on ANYTHING. Everyone of their kids has a seperate cell phone with bill for same. Cable with deluxe packages costing over $175 a month. Eating out most every day at work and then with the kids on the weekends, but nope, they can’t find any place to stop spending money.
Of course you can cut back, that is what a lower standard of living has in store for us. - Tom
No house note and no car payments since last month. Also no credit cards. Still not much money yet, but doing better every week now.
In 2008, I paid off the house but put half a payment each month in seperate account for emergency/taxes fund. Now each year when taxes and insurance are due on the house, we go to the bank and get the payment out and don’t have to sweat it.
I plan to do the same thing this month with the car. I am going to put $200 a month in a car fund for future repairs or replacement car.
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