First of all gasoline has now hit a pain threshold. I'm yelling uncle at over $3.50 a gallon of regular gas in Atlanta. Atlanta first of all is a driving town. We have mass transit, but it really is a novelty as opposed to a full functioning system. It is very limited, and does not have a great bus system to pull up the slack. It is a painful event added to a town that already has one of the worse commutes in the nation. For real estate agents, this could be a "Good News / Bad News" Blog about rapidly rising gas prices. The good news is that we aren't wasting gas running buyers all over the place in a slow market. The bad news is that the rising gas prices are quickly depleting our cash reserves. Since transportation is part of all of our budget both in our business and personal lives how are you compensating for the exponential increases in gasoline and the inflationary effect it is having on out economy. You can include changes in your diet due to the Ethanol factor (turning foodstuffs into fuels. It is almost a Biblical event. "a bushel of wheat for a barrel of oil." The reasons for rising fuel prices and food prices are many, the falling dollar, supply / demand, and a commodity bubble built on speculation. Since we all have fixed dollars to play the game of life...what are you doing to conserve money and curb other expenses? Here are a few ideas to start you off.
- Change your routines and consumer spending patterns
- Drive slower, change driving patterns
- Trade gas guzzler auto for hybrid auto
- Review real estate and personal budget for expense patterns
- Review marketing effectiveness of recurring charges - Pay Per Click, lead generation, ads etc...
- Cancel Cable TV or HBO
- Cut back on cell phone use
- Cancel hard phone lines and go to cable package or cell phone only
- Cancel Fax lines
- Cancel ineffective marketing
- Stop going to Starbucks daily
- Cancel gym membership / personal body trainer
- Drive a more economic fuel efficient vehicles
- Drive a diesel with bio fuels
- Spend more time at home
- Work from home - go out of office
- Less impulse shopping
- Postpone major purchases
- Cut back on marketing budgets
- Eating home more often - less dining out
- Combine trips - Carpooling
- Mass transit: Train, bus
- Eat fast foods instead of fine dining
- Give up smoking
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Bob & Carolin Benjamin - E Phoenix Arizona Real Estate LOL! At least it is one less think you have to go without! Just kidding. Time to time we have to force ourselves to look at our expenses and patterns! They can always be changed!
long list of everything... I personally...
1. Do work from home ( my office is 15 miles away)
2. Do on-line shopping
3. I like carpooling
My life style has change dramatically since the gas prices have increased. I work from home now and my broker is fine with that.
Btw, in my area - I switched to a cable system for my phone/internet/cable. I have UNLIMITED calling in the US and limited international calling along with a dedicated Fax line, cable internet (very fast) and full cable for $150 a month. No complaints. You do have to buy the whole package though. For NY that is a very good price.
Everyone should check out what they can save by doing this or using FiOS - if it is available. I'll check it out when its available to me.
Paid $3.73 for Shell premium yesterday. Ouch. Working at home more and I 'multi-task' when I have errands to do.
Thanks for the great information Richard. You are so right about Atlanta...been there...done that. That's way I moved to the ^^^mountains^^^.
Those are all great things to do. We also have stopped going "out to lunch" everyday, so that means we are eating better and have actually dropped a few pounds. Great post as usual!
What? no Starbucks? then why would I ever drive to town? LOL!!!
Your Friend in Charlottesville Virginia!
My purely selfish tip/technique.
Now Bring on the Sun.
Gas is $3.99 in So Cal! I think I will take my friend Cristal's lead and start riding my bike around town!
Jim, love the list.
We have tried to cancel a year long contract for ineffective marketing they are not budging...any ideas?
I agree that you shouldn't have to go into the office everyday, but being in the office has a different feel to me than being at home. I also feel that previewing homes and driving around is a way to build your business so the gas prices make it hard to do this effectively. I think another one to add to the list is to make sure you know where you are going before leaving your home or office. Make sure to map out the homes in order and direction so you are not driving in circles.
Great points, especially the Starbucks comment. I don't do this, but I know people who eat out everyday. Do they not realize how much money they would save if they would just pack a lunch.
I about choke every time I fill up my gas tank and it's only about $50 (I never imagined I would be saying "only $50). I don't even want to think about the cost of filling up an SUV or pickup truck. No thanks, I'll keep my car.
Recently a friend of mine told me "you don't buy a car for the gas". I had to laugh the other day when I was with him, while filling his gas tank, which ended up being a good $90. He calculated he got 11 miles a gallon on his truck!! HAHA, maybe he should consider buying a car for the gas!!!!
Jim,
I've said all along, that fuel prices play a major role in our wacky real estate market by 'fueling' the lack of consumer confidence! Thanks, Fran
P.S. Maybe increasing our tithing might help???
We are not in control of our destiny. The Congress have decided to destroy the country in order to save it. Nothing else makes any sense when we haven't built a refinery in how many years? Or, opened any new fuel resources in how many years???
We are subsidizing the world and we are supposed to feel guilty because we want the safety of large autos. The leaders of the world lecture us on our profligacy and then expect us to defend them against evil doers.
A pox on all their houses.
Frank Rubi Louisiana Real Estate-Homes for Sale Frank giving up golf is a biggie. I do not play the game, but I understand passion! Wow! The thing we have to admit to our self is that it is for the time being, and not forever!
Brian Block -- Northern Virginia & D.C. Real Estate I agree with the cooking and eating at home! What a great place to enjoy fine dining and no tipping! A class of iced tea does not run $2! The grocery bill is part of the same picture! This is worse than the late 1970's under Carter. Today we are dealing with the "Ethanol Factor" trying to turn foods into fuel! Back under Cater it was the transportation costs to distribute goods.
Steve Homer All things in life seem to recycle. Events, fads, and even business cycles! Oil is very inflationary, but inflation could lead to deflationary pressures. Persons stop spending and the economy can grind to a halt!
Spokane Real Estate - Ross Quintana The problem is that none of the politicians on either side are going to do anything as long as oil companies can throw millions of dollars into their political coffers! Isn't it interesting how some of these oil company lobbyists can contribute equal amounts to bot democrats and republicans!
The typical car costs ~ $.20/mile fixed cost ($30,000 price/ 150,000 miles life) and ~ $.20/mile variable cost for gasoline ($4/ gallon @ 20 MPG) for a total cost of ~ $.40/mile so gasoline is now ~ 50% of cost of ownership! If you make over $100k/yr, gas is still insignificant. Skip owning a car and just rent one of those Flexi cars by the hour!
If you sell your car and live within walking distance to work/shopping that may save $600/month which is worth ~$100,000 of house based upon a 30 year fixed mortgage. A $200k country house costs the same as a $300k city house!
But, if you are ever in a serious auto accident, you will wish you never saved gas money by buying a compact car.
We will eventually develop lifestyles like the Europeans since their gasoline is about $8/gallon.
Sorry, I love to drive so I got a roommate to offset the increased cost of gas! It seems many of the foolish drivers now can't afford to drive so I enjoy the highways even more!
Hi Jim,
I love your list these are some great ideas! :)
Jim,
Love your blogs.
They are most useful.
Thanks for continuously giving us food for thought.
Have a great week.
Linda
Gary Woltal - REALTOR® Dallas Ft. Worth During the last gas crisis loads of folks had great ideas on how to watch your budget. Now that credit is drying up and becoming more expensive more folks will have to conserve cash! It is easier than you think, but we first have to change our mindsets! I love dining out, but I am also a decent cook.
Phil I have noticed the highways have less traffic this week! Also, my dream home would be to live in a town with a real mass transit system like NY, or DC! I loved life without a car!
I drive a Honda Civic. It averages 32 mpg when I do heavy city driving, or 35 mpg when I add more highway driving. And it is paid off.
I compensate by saying, "Wow, I have to spend almost $40 to fill up???" Then I look at the SUV and minivan and luxury car drivers and say "I am SOOOOO glad I decided to buy a Honda Civic!!!"
I feel good.
Oh- can I tell you how hard I laughed when I read the post by Lenn Harley??? A pox! I love it!
Sarah Nopp, REALTOR(R), CRS. RE/MAX Four Seasons, Olympia WA I used to own 3 SUVs! I sold 2 an have one SUV, and a chevy Malibu 4 cylinder that averages 25 MGG city and over 32 HWY! We drive that more now!
I have to be aware of my output for clients to make SURE they are serious buyers. I would hate to waste money and time on tire kickers. My preference is to give them all they need in an email until we narrow something down.
Great post!!
I have always had a home office since it makes no financial sense to pay overhead for a place I am in a couple of hours a week.
We don't eat out, since I am a good cook, but don't knock my starbucks habit! :) That is blasphemy out here in the PNW. We have coffee houses on pretty much every corner. I bet we would have the highest coffee house per person ratio in the nation, if there was such a statistic.
I have been more cautious of how much I drive and make sure that I map out my routes to cut on gas costs. I also agree with another poster that real estate will be more local. I had to really question taking a listing in a smaller town out here since it is a 30 minute drive from me.
I quit working entirely. The amount of money I'm saving on gas more than takes care of my mortgage and other bills! LOL! JK. I wish that was the case. I leave work when there aren't that many cars on the road, preventing me from the usual stop and go traffic that burns gas.
A friend of mine has a term for people who give up their cars to drive a motorcycle to work. He calls them "organ donors".
When Americans give up all that stuff, the Starbucks, the driving to shopping centers, the gym, etc. and start staying at home, what's that going to do to the economy?
Patricia Kennedy Over the years...we got into the habit of paying off the autos! We use the Tahoe for showings, and Malibu for errands etc. I could not see how a person in this market could be paying $400 or 500 a month payment + gas. Ouch!
Latonia Parks Now it is common sense. Ask questions first before we allow persons in our car.
Melina Tomson, M.S. Salem Oregon Real Estate Specialist Everything has to be thought out completely. recently we received a referral for a home that was 35 miles one way from here. We almost balked, but we listed it at the right price...and we sold it in 15 days.
Eric Kodner CRS, ABR, e-PRO, CLHMS, Madeline Island Real Estate Wisconsin Do American have a choice with rising gas bills? If income is dropping also, who's payning for this? I am. As a responsible adult, I now have to act like one. Luxuries like gyms, personal trainers, HBO, Starbucks coffee...I've lived wihtout for most of my life. Why should I keep them on the list?
David Saks The problem is that they are enabled to do so without oversight. The answer is...sort of like follow the money... it will end up at the US Capitol! Congress is not enforcing any oversight. Has no one connected the dots? Our downturn started when? Think in the last few years...what event started our slide on most every front?
Colorado Springs Realty Patricia Beck Starbuck's? I started carrying coffee from home again! I had all those great stainless coffee canisters that were taking up space, now I am using them!
We are paying 4.09 a gallon in LA.
We will be purchasing a MB diesel to convert to SVO for around town stuff. I am still trying to find my dream Ford Excursion to be converted to SVO too.
A school disstrict in South Jersey has 4 dozen buses running on SVO.
I will be cutting back on golf, to once every two weeks instead of once a week (although, since I am new to the area, this is one of my primary means of meeting people).
Will continue our one night a week out to dinner. Lunches, if I am on the road will be sack, unless with client/customers.
I don't go to Starbucks, already have Bocajava at home and it, IMHO, is much better. I might cut back on it though. With summer almost here I will probably drink more iced tea.
Plant a garden (although I do that every year). It really isn't a lot of work for tomatoes, cukes, squash, onions, radishes, etc.
I can understand cutting the gym memberships. I cut mine recently and saved $35 plus the gas to and from. I found working out at home to be just as good. I liked dailyfitnesstrainer.com, which showed me a bunch of free 3 second video clips of home exercises plus a daily workout updated each day for advanced or beginners.
Ken I dropped mine also. I think it is smart.
Great post and some great comments. I, too, have joined the ranks of changing my lifestyle and budget just to pay my gas bill.
I recently had a realtor refuse a referral because it would cost too much gas to deal with a buyer.
I've cut back going to Targt or Walmart or Walgreens and buying crap I really don't need. Remember the days you would toss things in your cart that you really could do without? Not anymore!
Chris Stewart (Windermere Pacific West Properties I think since I wrote this it has become even more painful. We have made more cuts.
LaNita Cates (REMAX of Joliet) I've started enjoying the dollar store! I don't need anything there, and if I go crazy, I do not buy much, and can even pay cash! LOL!