Managing petrol increases

In Latest, Money cents by Donna Willan

Managing petrol increase

Two weeks ago I mentioned the train running towards us on the tracks; it turns out it is actually hurtling towards us – the petrol increase. It was not whoppingly huge, but it was certainly big enough to have ripple effects beyond the price of petrol. Food prices, public transport, and air travel seem to always increase with a significant petrol increase. I’m sure we’ve all had the conversation about “…and of course when the petrol price comes down, food prices don’t come down…”

So, we know that a petrol increase is more than just a higher petrol bill, and that it is likely to happen on a semi-regular basis. We know too that while petrol may come down some months, other prices don’t follow. So, what should we do to try to protect ourselves and our budgets from the petrol increase shocks?

Well, for one, I think we should all consider buying smaller more fuel-efficient cars; when petrol increases, the big cars are hit significantly harder.

But, beyond that what can we do? Yes, we can tweak our lifestyles a bit, tighten our belts, fly less, etc. But in reality, petrol increases happen, prices continue to rise – we need to just be smarter consumers and live more economically. I write about this often and I think this petrol increase is another red flag that shows how essential it is that we watch our budget, live within our means and try to make a few lifestyle changes to accommodate life being more expensive.

Nothing huge in this observation, but just a reminder to be financially smart.

In my next column, I need to explore this question of “Can we work less while still working well, relax more and yet still earn enough?”

Donna


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