Rumor has it that gas prices will increase this summer. I don’t know why this is news, it always increases in the months following May, but knowing this is going to happen can help us be ready for $5.00 a gallon gas.
Pretend like it’s here now
The best way to prepare for this is to pretend like you will pay $5.00 a gallon right now. Next time you go to the pump, anticipate how much a normal tank of gas will be. If you normally get 10 gallons then do the simple math: 10 x $5.00 = $50.00. If you normally get 15 gallons then add another 5 x $5 to that (another $25.00). When the handle jumps and the pump automatically kicks off when your tank is full then you will feel some relief that today did not cost you $75.00.
Budget like a business
- How many gallons does it take to fill the tank?
- How much would a tank of gas cost at $5.00 a gallon?
- How many times do you fill that vehicle in an average month?
- Expect to spend that much between May through August
- Repeat this for each vehicle in your household
Now that you know what to expect you can forecast fuel expenses as well as a trucker. It will also help in completing a household budget that works (a moneyplan).
What to do if you have money leftover?
A couple of smart moves you can make with the unused gas money is to apply it to your next month’s gas budget, just in case prices go above $5.00 or you drive more miles. Use this month’s excess for next month’s increase.
If you don’t use it next month you can repeat the cycle again. At some point you will have covered all your fuel expenses and have some money left over. Then you can apply that money towards the oil change! (It never stops, does it?)