Do You Really Know Your Annual Cost of Gas?
Do you really know how much you spend on gas over a 12 month period? As the price of gas has grown so has your yearly gas cost. If you do figure it out you may very well be surprised and it won't be a pleasant surprise. Gasoline has become a major piece of your family budget. Do you really know how much you are spending for gas annually? Most drivers know much it costs to fill their car but not many can state with accuracy how much they spend per year.
It is easy to figure out and only takes a few minutes. That being the case one would think that most drivers would take the time to work the calculations and determine their annual expense. But most don't. If they did they might realize how important it is to their financial health to do something about it.
Almost every day, we see the increases to the price of gas. $3.00, $3.19, $3.39 per gallon, even $3.49 and $3.59 per gallon are costs that we have seen this year. Not long ago $3.00 for a gallon of fuel seemed high. Now $3.00 looks like a bargain.
The AAA uses 15,000 miles as an average amount of miles traveled per vehicle. If you travel approximately 15,000 miles each year in a car that gets about 20 miles to the gallon, you will buy approximately 750 gallons of gas per year. At $3.00 per gallon that adds up to $2250.00 per year as the cost for gas.
If you are a two car family averaging 15,000 miles per car you will use 1500 gallons of gas per year. 1500 gallons at $3.00 per gallon equals $4500.00 per year.
If the price of gas is $3.49 per gallon of course the results are significantly higher. If you are a one car household utilizing 15,000 miles per year you will have an expense of over $2600.00 annually. If you are a two car family your yearly costs will be over $5200.00 annually. That equates to $437.00 monthly. You are likely spending more for fuel than you spend on a car payment.
Every time the price of fuel goes up at the pump by 10 cents, the yearly increase for your two car household is $150.00. When the price of fuel jumps 20 cents in a single day, understand that it will increase the cost to you by about $300.00 per year.
When you think about the annual cost of your gas it is very sobering. When you think about spending $5200.00 per year, you might want to serious look at ways to reduce that cost. When you realize that the 20 cent increase today will cost you $300.00 this year you might decide now is the time to do something about it.
Scott Siegel has written a 143 page book of automotive industry insider secrets on saving gas and dollars at the pump (beatthegaspump.com). Visit us to learn how you can get better gas mileage. Find out how to increase gas mileage.
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