There is a lot of talk in the news about gas prices going down, and I can see that they are, but certainly not very fast! But that’s the way it works. Prices typically go up pretty fast when a “shortage” is declared and come down pretty slow because suppliers have gotten us conditioned to the higher prices. Just the talk of a freeze in Florida can make prices go up on orange juice. The floods we have been going through in parts of the US are already having an impact on pasta prices because durum wheat crops were destroyed. And those prices may not ever come back down.
So what are you going to do? Are you going to stop buying gas until it goes down to a level you consider affordable? No. Are you going to stop flying because the airlines impose another stupid fee? No. Are you going to stop eating because groceries cost more? I promise you the answer to that one is a big FAT no. People might be willing to do a lot of things but change their eating habits isn’t going to be one of them.
So what can a person do when faced with prices going up?
Start by asking the right question. The right question is not: “How did the country get in such a mess?” Save that for question for election time and do something about it at the polls. On a personal level, the right question is, “What am I going to do about this mess in my own life, right now?”
I have some old, boring advice: plan, adjust, sacrifice. Every news/business/financial show on television has been warning people for months and months that gas prices and other consumables were going to go up in price and yet few people did much to plan for it. I understand that times are hard and lots of folks live paycheck to paycheck, but you can’t let that be an excuse for not planning.
Get out a pen and paper and figure out where your money is going. In other words, track your spending. Few people ever bother to do this. Yet it’s impossible to fix a leak until you know where the leak is. Find out where your money is going by tracking every penny.
Once you figure out where your money is going, then you can figure out where you have to adjust. The average family unit spends 13% of their budget on food. (By the way, if you find your number is higher than that, cut back on the groceries (eat less), grow your own, buy cheaper food or stop going out to eat so much!) If you know that food costs are going up, then you are going to have to adjust in some other area. It’s the old give and take thing. You aren’t going to stop eating so what are you going to stop doing? How about this? Cut out the non-essentials? Things like new clothes, a new iPad or other latest technological gadget, or premium cable. I promise, it’s not much of a sacrifice to make the numbers work. Prices on food and gas are not going to hurt as much as people claim if they will just adjust their lifestyles and stop buying stupid stuff! I can assure you that $4 a gallon milk and $4 a gallon gasoline isn’t hurting people nearly as much as $4 cups of coffee.
That’s why the gasoline price thing didn’t upset me like it did most people. I did the numbers and figured out that the crisis just isn’t as severe as most people want us to think it is for them. (There are exceptions I know, so don’t bother telling me yours. I get it.) And yes, I know that the oil companies are making a ton of money and that it’s immoral….. yada, yada, yada, I’ve heard the argument. But the reality for most folks isn’t as devastating as they believe: The average miles driven per year is about 13,000. At an average miles per gallon of 15mpg that’s 866 gallons per year or 72 gallons per month. At $1 per gallon increase that’s only $72 per month. It doesn’t take a lot of adjusting of your lifestyle to come up with that. Premium cable alone runs close to that. But that’s the problem. People want their Showtime AND their cheap gas. Well, it doesn’t work like that. You don’t always get what you want. Instead, you learn to deal with things the way they are, which means you adjust.
Have I over-simplified? Of course I have. However, I am a big believer is over-simplification because it makes people say to themselves, “Duh!! I know this!” Yeah, I know you do. It’s rarely that we don’t know what to do, it’s just that we don’t do it.
“This post was originally published for my column at DebtKid.com. You can find the original post here.”
Let’s see…slowing down and driving at 55 rather than 65 saves gas — but the roadways are still full of drivers who think they’re living in their own James Bond movie. 65? Try 80! I figured out about two gas price crises ago that Americans don’t want to SAVE gas. They want gas to be cheaper. Not the same thing at all. Slow down, save gas, save money. Simple, right?
Love how people in higher postitions always tout “do/spend less” while they devour everything in sight. Why shouldn’t people have nice things? It’s ok for whatever senator and his family to drive bmws and go to Yale, but we have to cut back?
So sick of hearing about how everyone should do this and that while the powers that be are living way beyond their means.
Eb – no one is saying that people shouldn’t have nice things. I believe everyone should enjoy every nice thing that the world has to offer – as long as they can afford them. You seem to be mad at people who have money, regardless of how they earned it and buy what they can afford. Why aren’t you mad at yourself for not being able to afford more? Why don’t you point that finger of blame back in your own face for not being able to pay for “nice things” without sacrificing your own financial security? Your assumptions are unfounded, illogical and are based in a sense of entitlement.
And if you are including me in your ridiculous generalizations, (as it seems you are since I wrote the article,) as one of those folks in “higher positions” “devouring everything in sight” then you need to do some fact checking. I worked my ass off for everything I’ve got – and I still do. You think only poor people work? How do you think most rich people got rich in the first place? I’ve discovered that almost all people who are rich worked their asses off to get rich. Very few inherited their money or won the lottery or fell into a pot of gold. They worked, saved, invested, planned and sacrificed so they could eventually be wealthy enough to afford and enjoy nice things without the constant worry of debt over their heads. I have also discovered that folks like you, who feel entitled (“why shouldn’t people have nice things?”) spend more than they earn because they feel they deserve things they clearly can’t pay for. Be clear on this one: You have what you deserve, like it or not. You are not entitled to anything. No one owes you HBO. Your results, good are bad, are your own damn fault.
But let me thank you for your response as your comment supports the argument I have been making for years about entitlement, victim-hood, and blame. These 3 things are the real threat to our society!
By the way, you probably ought to pass on getting my email blasts and blogs from now on since they are all based in personal responsibility. You seem to have issues with that topic.
All the best.
Larry
great piece!
“I can assure you that $4 a gallon milk and $4 a gallon gasoline isn’t hurting people nearly as much as $4 cups of coffee.”
Since we can’t make our own milk or gasoline, we’re pretty much stuck with those costs. BUT there is NO excuse for anyone paying $4 for a cup of coffee — PERIOD!
As always, thanks for your “simple” wisdom…
Sincerely,
Jan Pitchford
Eb, you need to grow up. Forget that class BS and entitlement mindset you got from your parents and look around you. What can you do, and what will people pay you for? Figure it out, and then do it.
I’m sure Larry would agree that most people are capable of doing what he’s done–meaning, you’re perfectly able to create the income you want, but you have to get out of your own way to do it. Sitting around pissing and moaning about people in higher positions doesn’t do you any good. That higher position is within your reach…you just have to turn off the stupid TV and grab it. And yeah, until then, you DO need to do and spend less. Look at it as the price you pay now to do what you want later.
Do you have the balls to do it, or will you continue to moan about your poor life?
Hey Lary, I really enjoy reading your thoughts on things. Thanks for all your hard work and effort in creating your books and web sites so that I have the opportunity to do so.
It sounds to me like Eb was talking about government officials who want us to tighten our belts so that they can continue to enjoy living on our hard earned dollars.
As for those that think the rich should be taxed more. I feel like they think it’s easy to get rich. If it’s so easy then why don’t they just get rich and stop their crying about being poor. The rich work hard for their money, they have a right to it, they earned it, they should be able to enjoy it.
Cut out the non-essentials. Good advice and easy to do. When my work slowed down the money stopped coming in. You can’t spend what you don’t have. Hunting, fishing, gardening, some of the things I dreamed of doing but didn’t have time for have became a way of life now.
I believe you talked about fear not long ago. Fear is what they used to drive gas prices up. Now that gas is about a dollar less per gallon and not topping $4 people seem happy with them even though it’s still a dollar more than last year. Exactly what they wanted. They raised the price and we like it.
Keep up the good work,
Mike
Great rebuttal to the last poster, Larry. I’m fond of saying if I don’t have enough money or ability to buy the things I want, it’s all because of my lack of execution. And that’s all it is. Period. I can complain all I want, but in the end, it’s all on ME.
Some people just don’t get it…
I have kind of a weird situation. I called the cable company several weeks ago to ask if they would reduce my cable (which would necessitate them coming to pick up the converter box). They reduced the BILL, but they didn’t reduce the CABLE and actually gave me free HBO for three months.
Then the guy said that when the price went up again in three months to call the company back and ask again to have the cable reduced and they’d offer me another reduction in price instead of reducing the cable. ?
Apparently, one of their cost-cutting measures is to NOT send guys out on calls to pick up converter boxes, although they’re happy to bring the boxes if you’re a new customer or increasing your cable. I’m kind of bumfuzzled by this.
One time, I read in a book called, “Success” by Glenn Bland that when starting out, you can have things or money but not both. I’m building up my finances, as I’m getting a fresh start in life, and I have Netflix for $8.00 per month and enjoy it more than I did satellite. I invested in an e-reader and download books for free. If I choose to buy books as well for the e-reader, I still save money in the long run and this keeps down clutter in the house. I love to write and got e-books about being a freelancer which makes it practical as well as pleasurable. Once in awhile, I enjoy a four dollar cup of joe. And I mean really enjoy it. Not like when I used to go get one whenever and maybe took it as granted. There’s something pretty cool about it all. Meanwhile, I’m saving up. When I make purchases in town, I try to decide wisely but I also save different purchases in the bags with reciepts and if I find that I am not using something, I return it. It feels as good when the money goes back into the bank as it did when I shopped, even better. This has helped me learn which kinds of items are necessary and which are not. You think you wouldn’t have to learn that, but I am. As for gas, I’m thankful to be able to pay for what I use. I do not own a credit card and I feel a bit like I would like to have one but then again, when I think about not being in debt, I feel pretty good again. Larry, you are like an anchor of reasoning. Anchors keep ships from floating aimlessly. So it is with sound advice. Advice taken, that is. Have a good day.
I love Larry, he is a straight shooter, but he is wrong on one
account, you can make your own milk: take a handful of
almonds, preferably organic, put them in the Vitamixer or other
high speed blender along with water, alittle ice and honey to
taste. And there you have it, milk. And this milk is actually
good
for you, unlike cow’s milk which is junk.
Once again Larry, you are absolutely spot on. Have taught my children from the get go that your outgo has to be less than your income! Started preparing five years before I was able to retire early and now I really enjoy life. Use it up, wear it out, make do or do without. One credit card for emergencies only. Thanks for your wisdom…it is much needed in todays ‘gimme’ world!
Great post.
I can affford $4 gas because I decided to start my own business six years ago while still working my full time job. Most people thought I was nuts working so much. Even I questioned my 16-18 hour days for a while…. After 5 years my co workers called me lucky. They would say things like “It must be nice to have money”
Where the hell where they when I was working my rear end off??
The entitlement mentality of this generation really ticks me off. Any one of my co- workers could have done what I did. Instead they decided to sit on their butts on their time off just like many others.
Now they sit back and complain about pension reform, gas prices, and everything else under the sun.
Just like you said, you are not entitled anything in life! Keep up the great work Larry!
Don’t waste your time lamenting the powers that be. Figure out what does and doesn’t work for you. I said good-bye to Direct TV and their $80.00/month charge (no premium channels even). For me that kind of charge doesn’t work. As a bonus, now I have more time to do things I like. What works for you?
I have adjusted to higher prices for goods.I make my own laundry soap,bake my own bread and I don”t drive my gas guzzler anymore.You can produce some of the goods you need to live.It just takes some work.Plant a garden,get chickens(there easy to take care of and fresh eggs and meat is the best)and look for other ways to cut spending.You will be amazed at how much money you really need if you just get creative.
Mark, your post reminds me of the saying, “The harder I work, the luckier I get.” It also reminds me of hearing Joyce Meyer say that if you want something to get rid of the wishbone and get some backbone. Congrats on your hard work paying off! I think it’s awesome.
The first time that gas prices went up we adjusted out budget to put more into gas. We never lowered it when prices went down so we were not affected by the price increase. And what we don’t spend we keep in our gas account.
By the way we have a 100 yr old aunt who’s saying was “If you have it God Bless you. If I don’t have it, it is not your fault.” To bad more people don’t see it that way.
Dear Larry,
Thank you so much. This is exactly what people need to hear.
I read Eb’s comments differently than some: I’d like so-called leaders to lead from the front for a change. HOWEVER, whether they do or not, YOU and I must lead. Take charge, don’t settle, make it better, work it. Work it at work, and then get home and work it some more. Fall asleep exhausted.
My job, at the moment, is very hard. That’s GOOD. We need to get over the entitlement sense in that arena too. It’s worth it. Like a lot of people, we cut back. GOOD.
Focus on making, not on taking, and it’s amazing how things will work out. There are a lot of like-minded people here. Good for them and thank you all for your great attitudes.
Keep kicking it.
Rob
I too don’t like the hike in fuel prices. In the UK petrol is about $7.50 per gallon and that hurts when you are doing about 20 000 miles a years. If I don’t drive, I don’t have work, so I’m not complaining, I have work.
“To marry”. slowing down to 55 doesn’t save gas. LMAO… For instance my truck has a 4 on the Floor. My third gear runs from 30-60. At 55 im running at 4,000 RPM wasting gas and at 60 im running at 4,500 RPM screwing up my engine.. While in 4th gear i run at 1,500 rpm at 60. Which means my truck begins to lug wasting gas. at 70 miles an hour im running a comfertable 2,000 RPM which saves me gas.. So grandma Get out of the way… and let me save gas.