I just paid $6.30 per gallon to fill up my car in California. That’s almost $7 per gallon just for the luxury of driving to work. I’ve been warning of a new financial crisis, and we are seeing evidence of it now.
Welcome back to the Inflaton Ate My Paycheck series (101, 102, 103, 104, 105, 106, 107, 108), where we beat inflation with discipline.
We need more discipline today than yesterday. If you are trying to live the same life you were last year, you are in for a rough ride.
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The new world order. Remember when everyone talked about “The Great Resignation” and “Quiet Quitting?” It seems just like yesterday, right?
The “powers that be” didn’t like the population taking ownership of their own lives. Within a year, they crashed the stock market, doubled gas prices, and halted the housing market boom.
If you are still at home without a job, it’s time to jump back into the fray. Why? Because we do not know how deep this recession will hit mainstream America.
The Federal Reserve is focused on slowing inflation to ensure the US Dollar remains the world’s reserve currency. They don’t want hyperinflation to come to fruition in America.
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What about gas prices? Today, I want to discuss how to beat gas prices. It’s actually pretty simple—stop driving.
Let me take a step back. How much did you drive a year ago? We were coming out of the pandemic lockdowns and full of joy.
However, now is the time to reassess how much we drive and why. I currently live in California, and everything is far away from my home.
Therefore, I stay in my little part of San Diego and barely get on the freeway. I aim to fill up my tank no more than twice a month. That is still $110-120 a month, and I drive a Ford Focus.
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Are electric vehicles the answer? I honestly do not believe electric vehicles are the answer for the general public yet. If you are already wealthy, sure, grab an electric vehicle.
If you are a daily grinder or shift worker, electric vehicles bring more issues than they solve. Here are a few problems I see with electric vehicles from my observations.
- If you are not at home, it takes time to fill up your vehicle.
- They are starting to charge to fill up at public terminals.
- Your home electric bill can rise by $100/month.
- In California, electricity is in short supply, making it challenging to keep charging your vehicle.
There are a lot of unanswered questions as electric vehicles become more popular. Can the electric grid support 10-20% of the population driving electric cars?
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What if you live in an apartment or mobile home? How much does it cost to replace your batteries? How far can you drive on a single charge?
Electric vehicles may be the long-term answer, but early adopters may pay a higher price in the long run.
What is the 5-10 year answer? I recommend small cars that get excellent gas mileage—including hybrids. Some great hybrids and smaller vehicles get 40-50 miles a gallon.
If you can use one of these vehicles plus limit your driving, you will be in a win-win situation. The used vehicle market is cooling, so it may be a better time to buy than six months ago.
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Remote work for the win. We all hate commuting, plus it now costs us a ton of money. How about getting started with remote work?
Remote work is much more common today and can be good for your mental wellness and wallet. Why drive every day when you can benefit from today’s technology?
Start new hobbies. Do all of your hobbies require you to drive? Well, it is time to start new hobbies. I know I do my running directly from the house—no need to drive to a running trail.
Usually, I wouldn’t recommend this, but maybe it’s time to spend more time playing video games.
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I’m not saying go crazy and play 10 hours a day. However, it may be a good idea if you can play for a couple of hours on Saturday instead of driving to the mall and spending money.
Start new passive income hobbies. I spend my weekends reading and writing. Better yet, I am building streams of passive income from royalties.
You can make an unlimited amount of money from home. If you want to beat gas prices, start a home business.
Not only will you stay in the house more often, but you’ll bring in additional income to pay your gas bill. Here is my series on Passive Income from Creativity (Music, Photography, Art & Design, Video, Audio, Writing).
Change your perspective. The most important part of beating gas prices is changing your mindset. These price increases and shortages are here to stay.
JOMO vs. FOMO
Don’t try to wait out inflation by living as usual—you will be in for a rude awakening. Even if gas prices fall, something else will spike upwards.
Rents are still sky-high, and they will only increase in time. I see many people in California going to Disneyland, concerts, and nightclubs.
People, this is not the time for excess consumption and spending. We need to hunker down, ensure we stock our emergency funds, and create passive income.
The Balanced Writer
Conclusion. Once we have our money right, we can slowly emerge from the cave. Even then, we need to be careful about our spending.
We may be in a recession or bear market for 5-8 years. That means stocks will remain depressed, interest rates and mortgages will stay high, and layoffs will continue.
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No, we don’t need to live in fear—that never helps. We just need to question everything we do, including driving around town.
Set a limit that you want to spend on gas per month, and stick to it. If you can do this, you’ll have a better chance of getting ahead. Random driving and spending can put you in a financial bind.
Be different and go against the grain. The world wants to pretend life is normal but beware of false pretenses. We must adapt to overcome financial adversity. Good Luck!
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