With all of the discussion about the price of gas that has been going on lately, and rightly so, it’s easy to blame your current financial troubles on the higher cost of gas.  Don’t.  While the higher cost may be hitting you hard, it isn’t the cause of your situation.  But we all like scapegoats and we like to blame things on someone or something other than ourselves.  Something that is out of our control.  As an added bonus, we get to complain about the people behind it and blame them too!

Here’s the dirty truth of it all.  The price of gas is not the reason that you are having trouble financially.  At 17 MPG, the difference between 1.999 a gallon gas and 4.159 a gallon gas is about $1500.00 a year.  A little over $125 a month.  It sounds bad, but when was the last time you remember paying $1.99 a gallon for gas?  It’s been a while.  The recent raises in price took the gas from about $2.499 to 4.159.  The difference there at 17 MPG is just under $1200.00 a year.  Or a little under $100 a month.

And that’s at 17 MPG.  If you are driving a car that gets 25 MPG, the difference is about $800 a year or $66 a month.  At 30 MPG, it drops to about $664 and $55.

$55 a month is nothing to scoff at.  And $125 can be a near catastrophe for some people.  But, if you had your finances in order to begin with it wouldn’t be a disaster.  It’ll still take a dent out of your budget, that’s for sure.  But a person who has control of their money and tells it what to do will be able to quickly rearrange that budget and keep on track with their debt elimination and savings goals.

If you make concessions and shorten trips or consolidate errands, you can cut that gas bill too.  Besides, don’t you feel just a little bit silly about blaming all your financial woes on $50 a month?  I bet you pay more than that on your cable bill…

Wanna see my numbers?  Here’s the spreadsheet I used. http://spreadsheets.google.com/ccc?key=pKnPEyRsjPSLpIC6wCWdjbg&hl=en