Skip to comments.Dave's Thoughts on Gas Prices (Dave Ramsey)
Posted on 03/31/2011 1:05:48 PM PDT by CSM
You've probably noticed that gasoline prices have gone up 13% in the last month. Since most of us are used to daily commutes, running the kids here and there and visiting friends and family, this price increase is affecting us both at the pump and in what we pay for other goods and services.
"But there's nothing I can do," some say. Dave says, "Oh, yes there is!"
It's time to revisit the budget.
Most people feel like they've crunched their budgets as much as they can. But how much is your car payment? How much is your monthly cable or satellite bill? Is the Starbucks drive-through a regular stop on your morning commute?
This may be tough to hear, but new cars, cable and Starbucks are luxuries, not necessities! You can easily survive with a used (and paid-for!) car, no cable reality shows and coffee made at home. Just think of all the money you could use to pay off debt and beef up your gasoline budget if you simply did those three things!
An algebra teacher and Dave fan in Michigan sent in an interesting email on this topic. She wrote:
Dave, I often give my math students this calculation to figure out. A typical latte costs $3.59 for 16 oz. That's 22 cents per ounce or $28.72 a gallon! Ask your listeners if they've drank a gallon of latte lately!
First Things First
You must remember that there is a difference between needs and wants in life. The first items in your budget should be your needs: shelter, food, transportation, clothing and utilities. If you currently go to the movie theater every weekend or have a Hawaiian vacation at the top of your list, but you struggle to pay the electric bill, then your priorities are out of wack. Don't sacrifice your needs to finance your wants. If you do, it will catch up with you and you'll regret it.
You can also strategically plan ahead while running errands and commuting to work. If you go to the grocery store twice a week, reorganize your list so you only have to go once a week. If you have a lot of errands to run, plan your route ahead of time so you're not retracing your steps around town. You could also organize a carpool with some of your coworkers who live near you.
It's anyone's guess where gas prices will end up, so have a Budget Committee Meeting right now to see where you can free up some money and keep your family from feeling the pinch.
My favorite are the folks that are complaining about the price of gas while they are dropping a $20 on lottory tickets.
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I just paid my last car payment!
Next car will be cash only and used.
Dave’s plan works for us.
Woo Hoo! Good job, keep it up.
How many times are these supposed financial geniuses going to tell people to cut the Cable Bill? You can only turn it off once.
Congratulations. Getting the car paid is one thing but making a change of life style is terrific.
how many times are these supposed geniuses going to tell people to cut that cable bill...
I know several people that have not got that message yet-I think of one couple that have a wide screen tv- are always scrambling to meet the most basic expenses.
And no- they likely will not ever figure it out.
I’ve go tot pay off the boat and the house (both gone by 5/18) and then I’m free. I’m doing some repairs/upgrades on the house now (siding) and paying as I go. It may look a little funny for a bit but it doesn’t add any debt!!
BTW, I absolutely love your username and signature. Way back when I used to play D&D the towns’ librarians were ALWAYS named Conan.
For those that know me personally fully understand that the most dangerous place in the world is between me and a coffee pot.
I’ll walk to work before I give up my Cup o joe!
Having no car payment is great - I haven't had one in several years.
My friend up in Ohio went through almost a year of unemployment. Fortunately, prior to being laid off, he paid off his truck. The lack of a $400+ payment each month was instrumental in him keeping his head above water.
Stupid drooling idiots watching Obama Tv getting brainwashed in HD. It is said that the corrupt govt keeps bailing losers out including the big banks.
I know what you mean.
I know a woman, married, 4 kids, 2 teens 2 preteens, all 6 have cell phones, just got satellite, and can’t make their house payments...on a deal they got for house for clunkers...after having had vehicles repossessed...
“Dave, I often give my math students this calculation to figure out. A typical latte costs $3.59 for 16 oz. That’s 22 cents per ounce or $28.72 a gallon! Ask your listeners if they’ve drank a gallon of latte lately!”
I seriously hate that example.
You dont drill for coffee and have millions of barrels of the stuff for sale. Nor is coffee used to fuel billions of cars, trains, ships and airplanes.
FYI, we did the same last year and then cut the car payment in half and put half towards a future car fund and half back towards the family budget. When you need another car, you get your trade in value plus the cash you carry. Just an idea.
Because most folks don’t listen and still have it on while going to bankruptcy.
I work with a lot of folks who complain about money but can’t, no-make that won’t, cut back on ANYTHING. Everyone of their kids has a seperate cell phone with bill for same. Cable with deluxe packages costing over $175 a month. Eating out most every day at work and then with the kids on the weekends, but nope, they can’t find any place to stop spending money.
Of course you can cut back, that is what a lower standard of living has in store for us. - Tom
No house note and no car payments since last month. Also no credit cards. Still not much money yet, but doing better every week now.
In 2008, I paid off the house but put half a payment each month in seperate account for emergency/taxes fund. Now each year when taxes and insurance are due on the house, we go to the bank and get the payment out and don’t have to sweat it.
I plan to do the same thing this month with the car. I am going to put $200 a month in a car fund for future repairs or replacement car.
Actually, if you really listened to him, that is NOT what he says. He says you budget your money including ENTERTAINMENT and habits.
All he is suggesting is when things get bad, you need to cut a little where you can to get though the rough spell. Plain common sense in my opinion.
“Ill walk to work before I give up my Cup o joe!”
That’s funny in more ways than you know. I have the best of both worlds, I do walk to work and I also coordinate the coffee club at work so I get to drink it for free!
Exactly! Dave talks about priorities a lot—something which a lot of people seem to lack. They can’t pay the mortgage, but they are stopping for McD’s every other day and texting in between on their phone plans that cost more than my weekly food budget (sounds like a cousin of my husband’s who makes fun of us for following Dave Ramsey’s plan).
It’s because we got serious and cut back while we paid off everything but the house that we are now able to breathe a little easier. We can go out to eat once in a while and the mortgage is paid. We can splurge on a coffee from Sweet Bay (it’s cheaper than Starbucks and better tasting) and we have groceries in the fridge. We can have cable TV and gas in the car. If we have an emergency, it’s in the bank, not on a credit card.
Then if TSHTF, we can cut back on the eating out, on the splurge money we budget ourselves each month, the cable, and so on. That’s the way it should be done.
“But to deny ourselves some enjoyment is a losing strategy.”
I have found that when I reached contentment, my definition of enjoyment has shifted tremondously.
“If huge numbers do what Ramsey suggests, then people who work at Starbucks will be out of work.”
I can’t imagine it happening to a better group of libtards.
Retirees can car pool to events. If the furthest person out drives, all can be picked up and split up the cost. The more the merrier!
Join a club if you travel. Traveling with similarly minded folks is fun and can be way less expensive.
For vacations, interview at a similar job. It doesn't reduce the gas prices, but it makes the miles and one night tax deductible. Just log the starting and stopping on your odometer on the hotel receipt. If hotel costs are too much, vacation with family at their home (even a distant cousin).
Just some ideas.
All good ideas, thanks.
“You can easily survive with a used (and paid-for!) car, no cable reality shows and coffee made at home.”
I’m living proof! 1994 Nissan Maxima, 120K miles and it’s been paid for for a decade or more. No cable or satellite for me. ‘Free’ Government TV is just fine. I only watch cooking shows, sports and Dancing With The Stars anyway, LOL! Coffee at home? Yeppers. Fresh-ground beans in my Bunn coffee maker - also about a decade old and still going strong.
My only debt is my farm mortgage...and I’m whittling away at that, as I type. :)
Terrific news!! Doesn’t it feel GOOD? Love your tag line, BTW. Very creative! :)
“Still not much money yet, but doing better every week now.”
You’re going to be just fine, and are already ahead of the game! It’s your attitude that has made ALL the difference, and once you get a taste of Financial Freedom, it’s hard to want anything else. :)
Here’s a great illustration/explanation of ‘The Fulfillment Curve’ which is something I completely agree with. Having ‘more’ doesn’t make me any happier, unless it’s more money in my Emergency Fund or working for me via investments. :)
I lack for nothing in this world. :)
I did all three of the things he is suggesting many years ago. We do have basic cable but that is it.
We sold the cars we had payments on. Then turned that cash around and bought older cars (toyotas) for cash. No car payments. Sunday night we shop for food for the week. We make a menu for every night and only buy what is for dinner each night. Got aggressive on paying off credit cards and have been card debt free for over 2 years. Both of us are working, me one job and my wife 2. Stocking up on survival supplies, long term food and water containers.
Got with the program a long time ago.
Live like no one else now, live like no one else later.
Mr. SG says that lottery tickets are a tax on people who can’t do math.
Our vehicles are 1995 and 1999. Thank heaven, Mr. SG is a former master mechanic who can keep them in shape. It doesn’t get any better!
Feels great actually!
We’re on Baby step 2 finally. Fortunately, it won’t take us a long time to finish that one.
Yes, much of Dave Ramsey is simple common sense. But the amazing thing is: so many people simply don’t understand that.
We did a sort of mini-Ramsey thing a couple of years ago, and the part that surprised us the most was that — hey, we are in pretty daggone good shape next to a lot of people! But we’ve kept our revolving credit at zero, stored 6 months of paychecks for “emergencies only” and gotten to where our only big expense is the mortgage.
Ramsey is basically the mom-and-dad discipline so many 20-40 something’s lack.
You betcha! The next ‘Mr. Wisconsin’ will be mechanically inclined in ALL areas, LOL! :)
Sometimes it is hard to remember there are people out there that are truly having a tough time- not every one is a leech. But enough are it makes it hard for those that are trying to help themselves.
MMT — I’m with you. There is a gal in our class who gave up coffee for Lent. That, for me, would be me spending 40 days IN BED. hahah.
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