DebtSmart.com Saturday, November 23, 2024

Household Math: Sale or gas savings?

by Scott Bilker
Scott Bilker Scott Bilker is the founder of DebtSmart.com and author of the best-selling books, Talk Your Way Out of Credit Card DebtCredit Card and Debt Management, and How to be more Credit Card and Debt Smart. Receive the 5-Year Loan Spreadsheet when you subscribe to his email newsletter.

How much are you really saving to be there for that sale? This is a true situation at our house. My wife drives a Dodge Ram, it gets 12 mpg (miles per gallon). Gas in our area is $2.45 per gallon. The mall is 18 miles each away. If she cuts back and only goes to the mall once a week, instead of twice a week, how much would she save in one year? ($7.53, $7.35, $8.35, or $382.20)

(Steve, DebtSmart Reader, submitted this question.)

 

Answer: $382.20

Explanation:

The solution to this problem is very straightforward:

1) 18 miles each way means…

2) 36 total miles per week saved.

3) At 12 miles per gallon, it takes 3 gallons to travel 36 miles.

4) At $2.45 per gallons, 3 gallons cost $7.35 each week.

5) One year’s savings is 52 weeks of $7.35 which is…

6) A total of $382.20 save each year!