Gas Prices Are Going Up. Here's How To Save.

Yes, there is a right and wrong day to fill up your tank.

Author

Nicole Lapin
June 15, 2023

Let’s Fuel Some Savings 🚗

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DONE! Ask and you shall receive! You can look forward to The Money Minute doubling down on the best money tips and tricks, served up with no-frills or jargon. Thank you for taking the time to make this newsletter better for you.

Back To Your $

Earlier this month, oil futures jumped after Saudi Arabia announced that it would cut oil production this July by one million barrels per day for at least one month. This announcement caused the benchmark for oil futures to rise 2.5% in just one business day to $78 a barrel. This indicates that investors think that cutting oil production in July will make the price of oil go up. And this makes sense, right? We know our laws of supply and demand: with less supply, and demand holding steady, prices will rise. And that is exactly what Saudi Arabia is trying to do: stabilize, but ultimately drive up, oil prices. This means that Americans can expect to see gas prices rise at the pump… again.

You might be getting pre-déjà vu from the outbreak of the Russia-Ukraine war when gas prices went bananas. I remember gas hitting over $8/gallon in LA. As we brace ourselves for higher gas prices, get to know and love these five lesser-known tips for saving on gas.

  1. Make Wednesday gas day. Wednesday is typically the best day to fill up for less. Prices tend to rise on Thursdays in anticipation of weekend travel. A study found that refueling on Tuesday or Wednesday instead of the weekend saved 8 or 9 cents a gallon, saving more than $60/year on average. In this economy, I’ll take it.

  1. Early birds get the deal. Gas station owners tend to hike prices after 9:00am or so, once they’ve had time to check out the prices at competing stations.

  1. Don’t top off. You know when you’re filling up your tank and you hear that first click? You may be tempted to double check the nozzle and give your tank a little extra, but don’t! Quit while you’re ahead! That extra squeeze is likely to evaporate or splash out. And make sure your gas cap is on extra tight so that none of your fuel escapes as fumes. 1 in every 5 people have loose, damaged or missing gas caps, causing 150 million gallons of gas to vaporize every year. Not only is a tight gas cap good for your wallet, but it’s also good for the environment. Win-win.

  1. Pay with cash. Some stations charge you less per gallon when you pay in cash because it means they won’t have to pony up for credit card fees. This hack could save you 10 to 15 cents/gallon… which could really add up depending on how often you refuel your car.

  1. Use loyalty programs. See if the station you visit most often has a rewards or loyalty card. But don’t stop there. Some grocery store loyalty programs offer gas rewards; meaning, you earn points for shopping at the grocery store, and then you can redeem those points for cash. The last place to check is gift-card resale sites. You may be able to score a gas card worth $100 for just $90 by buying from someone who wants fast cash over gift cards.

xo,

The Money Minute is your one-stop-shop for financial advice. Subscribe to get three articles/week on the best money tips, delivered straight to your inbox. 💸💸💸 Bonds are Sexy These are some difficult financial times— and I know that it can be scary, especially when words like “recession” and “depression” are thrown around. Frankly, I’m anticipating that the economy is going to get more precarious before it stabilizes. But this is why I’m here. This is why I write my Bulletin, this is why I have my podcast, this is why I do what I do: to help you get through difficult economic times. I chose to focus my career on financial literacy in the wake of the 2008 recession, because I saw financial knowledge making the biggest difference in people being able to live the lives they want, without huge amounts of disruption. During the recession I was broke, but I was able to get myself through, in part, because I sought out the financial tools to build a proverbial shelter to weather the storm. And if I made it through 2008, you can make it through 2022. So let’s get prepared for the storm ahead. I’ve said it before and I’ll say it again: the way to build real wealth is to invest. But with the current financial landscape, I do recommend buying into some safer investments. And the best safe investment you can make right now, is the Series I Bond. And I know— your eyes are glazing over because bond talk makes you fall asleep. And can I just say— poor bonds, they get all sorts of flack. People think bonds are bad birthday gifts, boring, lame, and so on. But here’s the thing: if bonds aren’t the sexy investment of the moment, what is? Is it Tesla? Because at the time I’m recording this, Tesla is down 45.8% since the beginning of this year. Is it Apple? Because even Apple is down 27.7% since January. Is it Bitcoin? Hell no. Bitcoin is down 57.6% since January. You know what the current interest rate on a Series I Bond is? 9.62%— and that’s 9.62% gains, not losses. So, I ask you again: what is sexier? A 50% loss on your investment or nearly 10% in gains? Yep. Bonds are the hero that we need in this economy. Bond, I Bonds There are many different types of bonds, which you can learn more about here. In this article, I’m going to focus just on the Series I Bond, because it’s the MVP of all bonds right now. Here’s what makes the Series I Bond so special: the yield is based on two different rates. One is a fixed interest rate— and that stays the same for the life of the bond. The second rate is based on inflation— and that is where the “I” in “Series I” comes from. That second rate changes every six months based on inflation— so your I Bond yield will stay dynamic to keep pace with inflation. Right now the fixed interest rate for I Bonds is 0%, and the semiannual rate based on inflation is 4.81%— so annualized, you get a composite rate of 9.62%. Let’s pause for a second because this is an important thing to realize— when we talk about Series I Bonds, we talk about the annualized rate, but that’s not what you’re actually going to earn every time the interest compounds— because the interest compounds semiannually every six months, which, of course, is two times a year. So, when you see the Series I interest rate, just know that you’re going to earn half of that annualized rate on a six-month basis. Let’s take the current rate as an example. The Series I annualized rate is 9.62%, so if you were to buy a Series I bond now, you would earn half of that— or, 4.81%— on your investment over six months. And here’s another important thing to understand: even though you’ll earn 4.81% during this six month period, your rate may change for the next six month period. Because again— the interest rates on I Bonds adjust for inflation twice a year— on May 1st and November 1st. So that annualized 9.62% interest rate can and will change: it will go up, or down, depending on what inflation does. And I know this gives potential investors pause, because our minds immediately go to a response like “Oh— my ROI could go down?! Well, screw that, that doesn’t sound like a good bang for my buck.” And yes, the Series I ROI could be smaller in future years than it is right now, and you should understand that going in. But in my opinion, we should be prioritizing investments that protect against inflation. Inflation is a very real force that is rocking the economy— and analysts say it’s here to stay. Plus, even if your ROI on an I Bonds shrinks, the lowest it can go down to is zero. In other words, you might earn no interest, but your initial investment will still be intact. So, with I Bonds, you’re never going to lose your initial investment— like you might if you invested in Bitcoin, just saying... Golden Rules Let’s talk about the maturation timeline. Once you buy an I Bond, there’s no other action required from you in order to keep your investment growing. For as long as you keep the bond, it automatically adjusts to the new rate every six months, your interest is reflected monthly, your interest is reinvested every six months, and compound interest does its thing. Like most bonds, you’re incentivized to hold onto your investment for a while. The earliest you can cash in on your bond is a year. So when you’re deciding how much money to put toward a Series I Bond, choose an amount that you can live without for a year. There’s no paying for rent or groceries with an I Bond. If you cash in on the bond after one year, but before five years have passed, you will get a small penalty of three months worth of interest. So, for example, if you cash in on your I Bond after three years, you’ll get back two years and nine months worth of interest. However, if you cash in your bond after five years, there is no penalty. You get your investment back, plus all of the interest you’ve accrued. The bond matures completely after 30 years. So, once those three decades are up, (if you haven’t already), cash that baby in because it won’t be generating any more interest. If you’re sold on I Bonds, which I’m hoping you are, you can buy them online at TreasuryDirect.gov. You’ll need to create an account, which is easy to do, and their site is pretty easy to navigate. The minimum amount you can buy in a Series I bond is $25 and the maximum is $10,000 per year; any amount between that minimum and maximum is fair game. You could buy an I Bond for $9,999.99 you could buy an I Bond for $1,234.56… you get the picture. Just remember: choose to invest an amount that you won't need for the next year. Instead, look at your 5-30 year goals— and invest in yourself, because there is an “I” in I Bond. xo, Do you want to get rid of debt, lock in that raise, plan for your best retired life, find unclaimed money and generally cruise along the road to financial freedom? Here are more ways to get it together and get it all: 🎙Click here to subscribe here to my daily financial advice podcast, Money Rehab. 📖 Click here to order my latest book, Miss Independent.

Do you want to get rid of debt, lock in that raise, plan for your best retired life, find unclaimed money and generally cruise along the road to financial freedom? Here are more ways to get it together and get it all:

🎙Click here to subscribe here to my daily financial advice podcast, Money Rehab.

📖 Click here to order my latest book, Miss Independent.