0:02
Gas prices, they've been dropping
0:04
significantly in the last month, as you
0:07
can see in this chart here.
0:11
That means more money in your pocket.
0:14
But what are you doing with that extra
0:16
cash? How about investing?
0:20
So, if you're driving, say, for example,
0:22
12,000 mi a year, that's almost $1,000 a
0:25
year savings just right there. But gas
0:28
pumps don't give refunds. So, how do you
0:31
capitalize on those savings?
0:33
Create a plan. Where does that money go?
0:35
You know, you have to decide, does that
0:36
go to more of a Roth contribution or
0:39
higher contribution? Does it go into
0:41
some kind of an account to preserve for
0:43
an emergency fund, but you have to
0:45
proactively decide where that money
0:47
Ideally, you want to put that extra cash
0:50
in a place where it not only can be
0:52
saved, but also can work for you.
0:55
Ultimately, we love to see people put it
0:57
into some kind of account that's
0:59
generating some interest because that's
1:02
how it's going to compound. Like for
1:03
example, if you're able to get a 10%
1:05
rate of return, your money should double
1:07
in 7.2 years. That's called the rule of
1:09
72. Uh so if it was a 5%, then it would
1:12
be 20 years. Training yourself to pay
1:16
yourself needs to become a habit. And
1:19
really, it's a habit that you can
1:21
develop in just under 3 weeks. you take
1:24
that money, pick a day of the month, uh
1:27
15th of the month or whatever your pay
1:28
period is, and just force yourself to
1:31
start small and create that habit. And
1:33
then over time, you'll start to see the
1:35
benefits. Resist the urge to fritter
1:38
away that extra money on things like
1:40
that fancy high-end cup of coffee or
1:43
other little goodies that you can really
1:45
do without. Now, admittedly, your gas
1:48
price savings will start small, but if
1:50
you keep at it, they will continue to
1:52
grow significantly, and over a year's
1:55
time, you'll have a considerable chunk
1:57
of change, which you then can keep
1:59
adding to. Working for you, I'm the
2:01
consumer guy, Steve Bridget.
