Preparing Your Budget for The Gasoline Price Hike

Is anyone else concerned about the quickly rising gas prices? Media reports indicate the price will be $5 per gallon by the end of the summer. At $3 a gallon, it’s costing me $50 just to fill the small tank in my Honda Accord. I cannot imagine how families driving oversized SUVs will be affected when the price per gallon nearly doubles. I still have bad memories of the crippling affect it had on my budget the last time gas got to $4 per gallon.

There’s more to consider than just gas prices. I don’t know about you, but my three highest electric bills of the year come during the summer months. My family, like most, also likes to get away at some point during the summer. I also have the added expense of summer camp and other activities for my child. That’s a lot of added strain on a family budget.

Here are some ways to prepare your budget now so you have some breathing room when you really need it.

Figure out how much more you will need each month and start putting it aside now. If there’s nothing to put aside, really look at your budget to see what you can cut. Are you buying or brown bagging lunch every day? Do you eat out often? Do you make your own coffee in the morning or are you paying a premium for that golden cup of Joe? Look at things like cheaper mobile phone plans, monthly internet plans, the cable bill, etc.

Consider downsizing to a smaller, more fuel efficient vehicle now. Bear in mind that it might not make sense if you have to add a loan payment to your budget. If you can make an even exchange or even sell your current vehicle at a profit, that would be ideal.

Start shopping powertochoose.org for a utility provider that can lower your electric bill this summer.

If you commute to work, discuss the possibility of telecommuting one or more days a week. If that’s not possible, check to see if your employer subsidizes or pays outright for DART rail passes as an employee benefit. You might also consider carpooling with a co-worker who lives nearby.

Figure out how you might earn some extra money. Take extra shifts at work if possible. Take an extra part-time job. If you are a stay-at-home mom, think about watching a few kids this summer for parents who have to work.

What else can you do to save money and prepare your budget for the gas price hike? Leave a comment hear and continue the conversation.