Jan 17 2008

How are gas prices affecting you?


It seems that we can never watch the news without hearing about gas prices or inflation.

Yes, prices are higher than ever, but how much does it matter?

At the gas pump, it stinks, but it doesn’t affect our wallet that much. We usually don’t drive far each month, so we don’t need a lot of gas. However, when we make the multi-state trip home to see family, it gets expensive.

Indirectly, though, I think we’re all feeling the pinch.

My husband takes the bus to work, and the fare recently went up.

Prices of some groceries at Aldi have increased by a dime or more.

The cost of just about everything has increased, it seems.

Inflation for 2007 was a staggering 4.1 percent. Yikes! That means, having money in a high-interest account such as ING at that rate means you’re breaking even. Having money in savings at a lesser rate means it isn’t as valuable.

Should we freak out? No, I don’t think so.

  • We need to make sure our savings accounts are earning interest keeping on par with inflation
  • Continue living frugally, making wise shopping decisions and making do with what you already have
  • Realize that the economy has cycles, and it will likely get better eventually

How is inflation/gas prices affecting you?

Posted under Uncategorized | 9 Comments »

9 Responses to “How are gas prices affecting you?”

  1. I’m not freaking out, but yes, it makes things tighter. I have no option but to commute to work, and I use roughly a tank of gas a week in my 30mpg car. Not that long ago, $24 would give me a week of go and now it’s $33+. And the prices of almost everything in my discount grocery have risen — some only 10 cents as you mention, but meat and dairy have shot up astronomically. And as the Fed keeps dropping the rate to spur consumer spending and confidence, the online banks drop the rate they’re paying. My ING account makes much less now than it did when it was near 5%.

  2. I agree with Rachel. I’m not overly upset about it, but it does make it harder. I can remember how I used to be able to fill up the car for much less. These days I’m thankful we bought small cars that are good on gas…

  3. I do not go very far thank goodness. Our family vehicle is a big 4 wheel drive truck. It cost me approx. $90 to fill up if i am on E. I would like to get something smaller to save money, but my DH refuses. Since he is the one working that’s what he wants. The truck is a diesel and when we bought it that was cheaper than gasoline, but about 4 months later diesel went up and has never came back down. Our bill for diesel on the semi last year was $62,000. I am afraid to figure what 07 was.

  4. I had no idea that inflation had reached that rate! Thanks for posting about it. I’m glad that I’m not Ben Bernanke this month – how can he keep lowering interest rates with inflation that high? Talk about being stuck between a rock and a hard place.

  5. Since we both commute, we are feeling the gas hike! One thing that I did this month that seemed to help, was to purchase gas cards through our Church’s SCRIP program (where they buy the cards at a discount and then sell them to us at retail, and it’s a fundraiser). It seems like we are being a little more mindful of how much we are driving because we are trying to make our $400 worth of gas cards last the month. $400 a month. Would a horse be cheaper?!!??

  6. I am not freaking out yet, however it we get much closer to 3.50/gallon, I might freak out. We live in a rural area, which means a lot of drive time to get pretty much any where, so the cost of gas can affect us drastically. Right now, it is what it is and we just cut costs elsewhere to alleviate the sting, but if it continues to rise, we will have to rethink a few more things to cover the added expense.

  7. I’m not gonna freak out. But true, that the life’s becoming tight with the price looking up. And it’s also true that the economy has it’s own cycle, but I really doubt whether price of gasoline will come down.

  8. We are definitely feeling the pinch at the pump. My dh took on a 2nd job at UPS to help pay off our debt (alla Dave Ramsey style)but he must drive 22 miles one way to get there. Our gas bill has increased from $65 per week for 2 vehicles to $82. I filled up my vehicle for the first time in a long time this week and it cost $53 for the entire tank!

    I am combining as many trips as possible but living in a rural area, everything is spread out. And I have to travel 60 miles a week for my weekly ob. appointment.

    Thankfully, I haven’t increased our grocery budget and still seem to be finding good deals there.

  9. Isn’t it GLORIOUS that we can consider 4% inflation “staggering’?

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Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

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I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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