As of this writing, I saw gas for sale at $1.92 per gallon. Just one day prior, I filled up my car’s tank at $1.99 per gallon – and thought that was a bargain. Little did I know that prices would drop about 3.5% in just one day.
Don’t worry, I didn’t lose any sleep over it. I’m not THAT frugal, despite past forays into extreme frugality 🙂
These prices are at levels that many of us probably thought would never happen again in our lifetime. However, they’re at those low levels now. So, it’s time to celebrate, right?
I think it’s a good thing, and it’s nice to see. Though as I wrote about several months ago when prices were closer to $3 per gallon, we should squirrel away that money saved on cheaper gas.
This might sound funny, but when I had the aforementioned gas purchase the day prior, I actually saw the $1.99 price on the sign and got a little bit fired up. It was irrational, I’ll admit it. You know, like an overly excited Black Friday shopper seeing a great deal at retail store.
Though I did have to laugh when at the pump I was asked whether or not I wanted a car wash. You know, when the temperature outside is literally 1 degree above zero, it’s quite the humorous question to ask a customer.
Anyway, back to gas prices. With prices at lower levels that in recent history, it’s a great time to remember that recent history. As in, remembering that those prices can go back to those levels at any time. As suggested in a post on Money Beagle, we shouldn’t count on prices being this low – and it might good to spend as if prices were that high.
This all came to mind in a very recent conversation where somebody was talking about buying a bigger house. These people live in a good enough house now, but for whatever reason they’re afflicted with dream home syndrome. The current place is closer to the city (Chicago), which all other things being equal means that prices will be higher than in more outlying areas due to jobs and other factors.
And what came up as a reason to consider moving further out? Gas prices!
It’s one of those exact things I had hoped people wouldn’t think of, but it looks like some are doing so. Memories are short with some folks all of a sudden, and low gas prices are causing people to get enticed to get more for their money buy considering a home purchase in a far flung suburb. Human nature, perhaps?
What will be interesting is if we see another wave of interest in such outlying, “exurb” type of places just as we did in the prior housing boom. You know, if gas prices stay at low levels for an extended period of time.
My take is that we ought to truly enjoy these low gas prices, but NOT count on them when making any budgeting decisions. So I’m doing just as I said in my prior post I referenced: suggesting that we save that extra money we have due to lower gas prices.
My Questions for You
How low have gas prices gone where you are?
Have you thought about how much you’re saving now in total, compared to how much you were spending before?
What are you doing with the extra money you’re saving?