My 1st Million At 33

The gasoline cost has been going up along with the crude oil prices. $4 seems to start to change the consumer’s behaviors from my personal observation.

From my own budget made back in 2006, more than 2 years ago, I was only spending $160 a month for gasoline. Now, for the last 4 months, on the average, I’m spending about $260 a month for gasoline. That is 62.5% increase. Certainly, part of the increase is due to some lifestyle changes including longer commute distance and I’m taking kids out more often to farther places. But majority of the increases probably come from the increase in the crude oil prices.

The prices to fill up the pump definitely are more shocking every time. However, I consider myself fortunate enough not to be affected much by the energy costs. After all, it’s $100 monthly increase, or $1200 annual increase. It’s some money, but much better than the horror stories on TV where the increase is $200 to $300 a month. Americans tend to travel and commute quite a lot. And spending time on the road is pretty much meaningless, aside the thrill from the speed.

Besides my gasoline, most of the items in my 2006 budget don’t apply anymore. My water bill has gone up by $1.5 to $26.50, and my combined bill for gas and electricity has gone up from $100 to $120. These are not a lot of increases, but they are increases nevertheless.

Next time, I’m going to re-do my budget and take a look at food from grocery bills and dining outs. There have been definitely quite a lot of increases, due to inflation and kids growing up. I’m fairly certain that the monthly increase in food is more than $100.

I guess the only upside from all the increases is my base salary increase. Unfortunately for many families out there, the increase in income barely covers the inflation cost.