Consumption and $100 Oil

Aleksandra Todorova’s article in Smart Money called “What $100 Oil Means for Your Wallet” tries to explain how the high oil prices will be felt by the consumer.

She states that oil prices have risen by 34% over the last three months but yet relatively few companies have passed this on to consumers. I believe she is wrong with this comment as gas prices have increased and so has food.

My wife and I made a conscious decision a few months ago to cut back our consumption
in general but last night on my way home from work I saw gas prices were increasing again. It is now $3.24 for gallon of gas. I know the national average is about $3.06. So I am paying more than most of the nation. But what are my options? Not go to work.

So back to what I was saying we made a decision to cut consumption but we reaffirmed this last night. So last night when we went to the library to borrow a book and DVDs instead of buying them, we took the car that gets better gas mileage. My wife wanted to go to Wal-Mart also but that is 5 miles further. We discussed what we really needed or if it could wait. We decided that it could wait.

So the lesson here is to try to rethink everything that you want to get. Notice the word want is underlined. What do you really need, shelter, basic food and gas to get to work to pay for these basics. Everything more than that is just wants, the candy bar, the paint for the bedroom, the DVD, the new pair of jeans.

Start to identify what are your true needs versus the want. Ask your self do I really need this? Can I make due without it? Do I really need to run to the store right now or can it wait? When you do this you will cut your consumption and be able to live more within your income.

Just my 2 cents. Jim @ ChangeJarSavings.com