Decline In Gas Prices Provide Opportunity
Decline In Gas Prices Provide Opportunity
Have you filled up your automobile in the past month? If you did, you probably noticed you are saving a lot of money on each tank of gas. My recent fill up was $20 less than a fill up just a few months ago. I drive a lot and fill my tank three or four times per month. How many times do you fill up your gas tank per month.
This is not a big news flash, but it made me think about this opportunity. Millions of Americans are now saving $20 to $80 per month on fuel for their vehicle every month. But what are most Americans doing with this savings. I have no idea what most Americans are doing with this savings. But something makes me think, most Americans have not thought about what to do with this savings. My guess is most Americans will spend this savings on other stuff.
Nobody knows how long gas prices will be at this level or continue to decline. I recommend that Americans think about this opportunity and make a conscious what they will do with this opportunity. I understand this is not a large amount of extra cash, but it can help many Americans. Here are a few thoughts on what Americans can do with this savings. I hope you will consider one of these options or come up with your own ideas.
Most Americans do not have an adequate rainy day fund. Make a deposit into your rainy day fund every time you fill up your gas tank equal to your savings. Remember a rainy day fund is to be used only for emergencies. A new 80" flat screen on sale does not get bought from your rainy day fund.
How about paying down some of your debt. Use your gas savings to make additional payments on a credit card. Start by making payments on the credit card with the lowest balance. After you pay that credit card off, start make additional payments on your credit card with the lowest balance and so on. You get the idea.
If you have all your credit cards paid off and have an adequate rainy day fund, you have other options. You could use your savings to make additional principle payments on your mortgage. A few extra payments each year can have a huge impact on the length of your mortgage.
I am a real estate investor and have investment properties in Albuquerque NM and investment properties in Rio Rancho NM. I have one rental property that I make additional payments to principle each month. I plan to use the gas savings to increase the principle payment on this rental property.
Another option is to use their gas savings and invest in stocks and or bonds. You can set up an account and make deposits each month and make purchases when you have enough funds to make your purchase.
How about placing your gas savings into an education account for your children, grand children, or any other relative.can give your gas savings to the charity of your choice. You know there are plenty of charities providing much needed services.
Maybe you are feeling generous and you can donate your savings to your favorite charity. There are plenty of charities providing much needed services to those in need.
I know these savings are not going to make you rich, but if you don't have a plan, you will most likely squander this opportunity.
The great thing about all of these ideas are you can stop any of these activities as soon as gas prices increases. What ideas come to your mind?
Be smart with your money and take advantage of all your opportunities. That is how good investors think.
505 401-7500
12/4/2014
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