Experience With Cheap Gas Prices

This Article On Experience With Cheap Gas Prices Is Written By Bob Vogel

This is my first experience with cheap gas prices that I have noticed in many years. So I was driving around last week, and what do I see?  I see a sign with a $1.29 on it, now I for one have no idea what this even means.  I pull into the parking lot and look to see what this magical sign meant and I came to find out that this was the price of a gallon of gas!  In my 15 years of driving I have NEVER seen gas at this low of a price. What has the world come to?  I know China’s growth has slowed way down, Europe still hasn’t recovered from their down times, and the middle east keeps on pumping oil as the U.S. floods the market with oil as well.

Experience With Cheap Gas Prices: Type Of Vehicles

It was just 4 months ago that I sold my Chevrolet Suburban and went for the more fuel efficient minivan for my family, and just a month ago I traded in my old Nissan Sentra for an even more fuel efficient 2016 Honda Civic so I can get 43 mpg on the highway. What is the world coming to now that I can fill my entire Civic for $16 and my minivan for $27.  I remember like it was yesterday spending $80-$100 per week to fill up my Suburban and $30-$40 per week to fill my Sentra. In theory my weekly spend on gas has dropped nearly 70% as the gas prices have plummeted.

Experience With Cheap Gas Prices: Effect In My Lifestyle

On one hand this is giving the public an increase in pay as their travel costs to and from work has significantly decreased.  On the other hand this can cause huge problems with long term ramifications.  Now you are probably wondering how a reduction in an expense can possibly be a bad thing, let me explain.  If the purpose of using this money is to facilitate more debt that you are going to take on, then think again.  Yes, temporarily you have an extra $300 per month in your bank account, but if you go out and buy a new truck or SUV, that $300/month is gone.  Now you are back to square one, but it only gets worse because now it is actually costing you more money because as soon as gas prices increase, you are spending more.

Experience With Cheap Gas Prices: Sales Of SUVs

What is really troubling is over the past 2-3 months the auto manufacturers have noted a spike in trucks and SUV sales that have come along with cheap gas.  So in 6 months from now, when gas is at its summer peak and you are driving that gas guzzling truck, you are going to have to try and figure out how to pay for everything.  First you fall behind on your payments, then you decide you can’t afford the vehicle, and finally the car is now repossessed and your credit is destroyed.  All of this could have been avoided if you would have planned for the long-term and not for today.

Experience With Cheap Gas Prices And Effects On My Finances By Bob Vogel

 Yes, I have taken on some new debt in the past few months, but I know I could afford these payments and I know I can handle the inevitable gas price increase from 15 year lows.  I have taken on debt for better fuel efficient vehicles instead of attaching my future to a money burning SUV.  The best advice I can offer is that you take this money and save it if you can.  If you must spend it, get some old debts paid off and get yourself in a better financial position.  You can start an emergency fund and also raise your credit score at the same time.  This is a no lose situation for you if you just play it smart.  Think about this as gas prices are so low and you have a few extra bucks to spend.  More than likely, this will NEVER happen again in the next decade….

About The Author: Bob Vogel

Bob Vogel is a senior writer for Gustan Cho Associates and Lending Network USA as well as a licensed mortgage loan originator. Bob Vogel has a bachelor’s degree in accounting and is an expert in all areas of accounting. Bob Vogel also consults his clients on investing, especially real estate investments and financial planning. Bob Vogel is known as Magic Bob by thousands of his clients due to his creative ways of saving clients money, whether it is advising them on how to file their tax returns and maximize their write offs or strategizing ways of refinancing their commercial and/or residential properties to save them tens of thousands of dollars in interest expenses. If you need advice on mortgage lending, financing, accounting, or financial planning, contact Magic Bob at Bob.Vogel3@gmail.com.

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