Inflation – Fuel Prices

We are all thinking it…. $85+ to fill up a small SUV!?!

What is going on with these gas prices? How are we supposed to survive? I was looking in one area today and noticed the prices = $6.39 for the 87 grade fuel. YUCK

One point I want to highlight is the importance of having an emergency fund. Inflation is a perfect example of a “storm” that you need to be prepared for. Having an emergency fund in place for times like these will offer you peace. After the storm, you can rebuild whatever was wrecked.

That brings me to another point: the cost. Many people are rushing to Costco to get cheaper fuel. But, is it really cheaper?

Think about how long you sit in the line to wait to pump your gas. If you go at the wrong time, you could be waiting up to 1 hour! Your time is super valuable and it should not be wasted waiting at the pump for “cheaper gas.”

You may want to consider going to another station to save time even though you may spend a little bit more per gallon.

Some gas companies charge a small fee for using your debit card. Spread out across the fuel purchase, it might make sense to just pay cash. Or, if you want to wait, you can use a credit card and get the cash back at the end of the month or year. Just know that using a credit card is actually incurring debt. Whether you pay it off every month or not, it is still debt.

I will land with this: since gas is a commodity needed to running your vehicle, you need to make sure there is fuel in the car. If you can make it work, only put in 1/2 tank until you get paid again. Adjust your budget as best as you can according to your estimated amount of driving for the month.

If you need help with your budget, contact me! Set up a consultation here now!

Published by MadsenFinancialCoaching

Madsen Financial Coaching was created to bring awareness to personal finance. When you pay attention, you win! We work with clients to understand their behavior and relationship with money, as well as basics of personal finance such as: following a budget, eliminating debt and building an emergency fund to name a few. We want you to succeed, and it starts with your willingness to put in the work.

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