One instance that can really drain your savings, as well as your enthusiasm, is when you take actions that you think will save you money, but actually cost you more than you save. One perfect example of this is driving across town to save a few pennies a gallon on gas. The American Automobile Association estimated that it costs 7.15 cents a mile to drive a small sedan in 2020. That means that if you drive several miles outside your normal driving route to save a few pennies on gas, you will actually be losing money. Therefore, when you are looking for cheaper gas, you should be searching for those gas stations that offer it for less and are along the route of your normal driving habits.
The normal instinct is to look for gas stations with good prices in the area surrounding your house and that’s where you probably currently purchase your gas. There are, however, other areas in your city that you should search for cheaper gas. It makes sense to check gas prices near your work, where you shop for groceries, near your workout gym, or any other place where you drive on a regular basis. The internet has made it easy to search for these gas stations with websites such as Gas Buddy.
While you don’t want to waste money, you do want to reduce the cost of your driving as much as possible. Because every penny a gallon you can save on gas without going out of your way will result in about $10 in savings for the average driver over the year —your actual savings will depend on how much your drive and what gas mileage your vehicle gets. Reduce the price you pay for gas by $0.05 over what you were paying and that’s extra of about $50 in your pocket over the year.
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