We hear it all the time. Gas prices are so high.  It’s unbelievable… those evil rich corporations are taking it to the little guy and on and on…

Look, I understand your frustration and aggravation.  I feel your pain when I fill up and my little tiny car takes $36 to fill it up.

But here is the deal.  Sure, the companies are making a profit.  The whole point of going into business is to make money.  You may think that they are make too much money.  I doubt it. 

Many oil companies have had many unprofitable years.  Year after year they pump money into R&D as they research new ways to more efficiently locate oil and efficiently extract it from the ground.  And yet, when prices go up, they are the first to be hauled before Congress to ask why they are being profitable.  Never mind the fact that they employ thousands and thousands of people.  Never mind the fact that there are other industries in which companies practically rape customers. And yet, you’ll rarely if ever see the other companies in before Congress. 

I’m talking about businesses who make money by loaning out money and then charging obscene interest rates for the privilege of borrowing their money.  I’m talking about credit card companies, payday loans (legalized loan sharks) and sub-prime lenders.  Why is it that we don’t hear a popular outcry against these companies?  Many of these companies have been profitable for years.  It’s only now when they made so many bad loans that they have to eat their own dog food.  I would like to see some of these companies catch the grief that the oil companies are receiving.

At the end of the day, neither businesses, nor their prices are the real issue.  The real issue is that many of you are living from paycheck to paycheck and a bump in the gas price is the first thing you notice because it’s more visible.  Here’s the deal.  I personally don’t worry about the price of gas.  The reason is that each month, before the month begins, my wife and I sit down and work the budget for the upcoming month.  That budget includes estimates for gas.  I know about how many times I will need to fill up the car and I know about how many gallons I need to put in.  I calculate the monthly budget for gas using the following formula:

number of fill ups * number of gallons * current price per gallon plus ten to twenty cents = total gas budget

We fill up about once per week and about 11 (round up to 12) gallons per fill up. So, for the month of May our calculation looks like this:  5 * 12 * 3.75 = $225 
If I know that I’m going to take a weekend trip or have some extra driving then I’ll add on an additional tank or so.

I realize that the cost of fuel is a large expense for some people.  I believe that this can be partially remedied through a solid budget.  Other things that will help include: getting out of debt to free up additional cash, earning more money, and finding ways to cut down on gas expenses, such as ride sharing, smaller vehicle and more.  Personally, I’m relying on solid budgeting and earning more money to handle the increased prices. 

Consider getting on a budget as your first step to putting gas price worries behind you.