Families are devoting more of their money to gas these days than they have in most of the past 30 years, according to new estimates in a U.S. energy report.
The average American household spent $2,912—or about 4 percent of its gross income—on gas in 2012, according to estimates from the U.S. Energy Information Administration (EIA). This is a bigger drain on the family budget than at any time in the past three decades except 2008, when the gas grab was about the same.
What may be frustrating for some to hear is that while gas consumption has gone down in recent years, the budget burden has only gotten worse as gas prices have increased.
Back in the early 1980s, families were spending more than 5 percent of their income on gas but traveling much less than we do today. Since then, fuel efficiency has increased significantly, making it cost less per mile for us to get where we're going. However, while U.S. gas consumption was at its lowest level in 10 years in 2011, average gas prices increased that year by 26.1 percent and then again by 3.3 percent last year, according to the EIA.
Tell us: How much is your family spending on gas? What do you do to save money?
I totally agree with the comment above, take public transit if you can. It will cost far less and reduce the stress of driving in busy traffic or caught in gridlock. It will also allow you to do some work during your commute such as using your computer (increasingly more public transit systems have free WiFi), safely making calls, or simply catching up on some sleep. Rent a brand new car when you want to take long trips or need a certain type of car for a special occasion. It is still cheaper than owning one all the time. Perhaps you cannot totally eliminate car ownership but you can reduce the number of cars a family owns and drive far less to reduce insurance, gas, and maintenance costs. It is also better for the environment and reduces our dependency on fossil fuels and foreign oil. Buy a nice bike instead and get some exercise for local commutes. Incidentally this will also save you time spent driving, money spent maintaining, and prolong your life by reducing stress and accidents.