I saw this on U.S.A Today that the U.S. household spent an average of $2277 on gas in 2006. This is up 78% from 2001.

It’s no surprise that the price of gas has gone up over the years. Combined with gas thirsty vehicles and longer commutes, it’s no wonder that gas consumption is up so high.

So what’s a savvy consumer to do?  Well, here are some of my personal tips on reducing your spending on this area of your budget.

- Take public transportation to your work or school.  I’m saving a lot on gas by taking the train instead to work each day.  This isn’t an option for a lot of people, so check your company to see if there are any carpool / vanpool programs.  Or find a new buddy at your work / school that would be willing to carpool together.

- Walk to you destination.  I’m glad to live a few minutes away from the supermarket and drug store.  Sure, it takes longer to walk than to drive, but it’s better for the environment and it’s better for your body.  If you have errands to run and the stores are close enough, consider walking instead.

- Get a credit card that gives you cash back.  Check the citibank website for credit cards that give up to 6% cash back on your gas purchases.  6% of $2277 is $137 you could be saving each year.

- Finally, for something more drastic, switch to a more fuel efficient car.  Quit driving those SUV’s for goodness sake.  I love my Toyota Corolla.  The car is over 10 years old, but I still easily get over 30 miles to the gallon.  I’m guessing that in a couple years, more and more people will be driving hybrids or vehicles that run on bio-fuel.

These are the times that I am glad I have a budget. I have about $500 set aside for car maintenance in case something like this happens.

I’ve had a funny clicking noise for the last couple weeks coming from the back wheel of my car. I finally took my car in to get it inspected. It turned out my brake cylinder was leaking and needed replacing. Most of the cost was labor since the parts for replacement were pretty cheap.

Well there goes my most of my budget for the year, hopefully there will be no other expenses except for routine maintenance.

If you bought a car on or after July 1st of 2006, you are protected by new California laws. Here are some of the changes to make note of:
- The dealer must provide you with your credit score and an explanation of how they will use it.
- The dealer must provide you with an itemized priced list of all the extra expenses.
- Used cars that are advertised as being “certified” must meet certain requirements.
- There is a two-day contract-cancellation option for buying used cars under $40,000.

For more details visit CA DMV. (Article from AAA)

I currently own a 1996 Toyota Corolla and I am quite happy with it. I debated whether or not to buy a new car after I started my engineering job, but for me a penny saved is a penny earned. Why get into debt as soon as you get out of college? Even if you can afford the monthly payments is it really worth it? In the end, I’ve always felt that cars are only a means of getting from point A to B.

My story actually starts with a 1990 Toyota Celica that my dad bought for me back in college. He bought it used from an ad at a Japanese supermarket. I think he paid $2,500 for it. He then rented it out for 4 months to a colleague and made $2,800. Now that’s what you call a capitalist. Well he gave me the car after he rented it out and I drove it around for about two years. During one winter, there was a weekend when it was pouring cats & dogs. My friends and I were driving back from a church retreat and we were having some trouble because parts of the streets and freeways were flooded. We made it back to within a few blocks from our church and I thought we had finally made it home. There used to be a big dip (I say used to be because they’ve flattened it out now) right before turning on to the street that my church is on, and I realized that my car might not make it through because it was completely flooded with water. I stopped in front and contemplated whether I should turn around or if I should gun-it and see what happens. Well, I found out that the dip was bigger than I had anticipated and didn’t make it through. My engine flooded and my car instantly died. Oops! I had to get out in thigh-high water and push my car out of the dip. I was pretty heart-broken because it was my first car I ever owned and because I knew that I’d probably have to spend money and get a new car. It turned out that the repair costs would be too expensive for it to be practical so I started my search for a new used car.

My budget was $5,000 and I looked online on Cartrader, Craigslist, Cars, etc. I quickly found out that the popular cars like Civic’s and Integra’s sell out very quickly, usually within a few days. The ones that stay unsold usually have had some sort of damage, or have had multiple owners which sometimes indicates a lot of problems. I signed up for a 30-day Carfax subscription and I definitely recommend others to do the same. Most listings will have the vehicle’s VIN number and you can quickly see the car’s history. I narrowed my search down even more to private sellers who were the single owners of the car (no auction cars please). Earlier I had tried going to car dealerships and used car lots but I had some bad experiences so I dropped that option. Buying from a private seller will get you a better price but it will also lengthen your search period. I think I took about three weeks to finally find and purchase a car. I must have called like 50 people and a lot of them were dead-ends. I found a Corolla that I liked and went to go check it out. I had read that it was prudent to have a mechanic do a visual inspection to check for any potential problems. Maybe it was unnecessary but for me it was peace of mind. So I asked the lady if I could meet her at a Toyota dealership the next morning to have it inspected. She agreed and I was stoked because I was pretty sure that I was going to buy her car. I called the next morning and she informed me that she had just sold the car to someone else who paid her on the spot. Jeesh. So my search continued. I found another Corolla that I really liked and this time I had success! The inspection checked out and I went with him to the bank and cut him a cashier’s check for $4,500 (We used Kelly Blue Book and negotiated with the private seller price). This has been my biggest purchase to date! (Next year my wedding banquet spending might be $15,000). I’ve been very happy with my purchase and love the fact that I usually get 30 mpg. I bought it at 96,000 miles and I hope to make it last until at least 196,000 miles. (No more fording rivers!)