Cost of Car Gas Expenses Comparison

Everyone pays attention to what the local gas stations/convenience stores are charging in their area, would be foolish NOT to do that. I ended up in a conversation with a friend about it, but had to use a spreadsheet to explain it as one of darn "math word problems." Here it is (and my results).

Math Problem
Bob drives a company car that gets 30 miles per gallon. He drives 36 miles per day Monday through Friday, to and from work. He passes a station on the way both ways, that is currently charging $3.75 per gallon. He heard about another station that is 2 miles past his office that is charging $3.72 per gallon. He decides on his lunch hour, to go there and fill up. How much did he save?

Solution
He didn't, it cost him $0.21 more. WHAT?!? HOW?!? Using the same 30 MPG car at each station it breaks down like this:

• Stopping at the station on the way home from work, that day he drove 36 miles
• Cost of gas per gallon is $3.75, cost per mile is $0.125 ($ per gallon / 30 mpg)
• Cost of the daily drive (cost per mile X miles) = $4.50
• Going to the station that was farther from work, that day he drove 38 miles
• 2 miles back, plus the 36 to and from work
• Only added 2 miles to get back from the station because he used his existing gas to get there in the first place. 
• Cost per gallon of gas is $3.72, cost per mile is $0.124 ($ per gallon / 30 mpg)
• Cost of the daily drive (cost per mile X miles) = $4.71
• Savings? Loss of $0.21

Summary
So, financially he lost $0.21 that day, but expand it to a monthly comparison. Same company car, same stations, Monday through Friday mileage, same cost per gallon.

• Stopping at the station on the way home from work, that month he drove 720 miles
• 36 miles per day X 5 days per week X 4 weeks in the month
• Cost of gas per gallon is $3.75, cost per mile is $0.125 ($ per gallon / 30 mpg)
• Cost of the monthly drive (cost per mile X miles) = $90.00
• Going to the station that was farther from work, that month he drove 800 miles
• Cost per gallon of gas is $3.72, cost per mile is $0.124 ($ per gallon / 30 mpg)
• Cost of the monthly drive (cost per mile X miles) = $99.20
• Savings? Loss of $9.20

So, if that continued for 12 months, loss of $110.40. All because Bob went an extra 4 miles per fill up each week. The additional miles driven would require more fill ups, so it offsets the "savings" by being 3 cents less expensive. If Bob has to fill up more often, the station sells more gas, which means they better the bottom line (profit). Plus you are likely to run into the station to grab an item that you want (a coffee, pop/soda, smokes, etc.) So they DOUBLE profit from you. But that is another blog entry related to this.

I admire business managers for figuring out how to better the bottom line by combining several profit revenues together, and blending it with marketing. Shows that business people are finally waking up on how to better the ROI.

I'm just trying to share with everyone what you need to "consider" on where you go to purchase what you need and better your wallet...

Navigating the New Super-Highway

Let's be honest, today's lifestyle is so fast paced that it surprises me that we don't get more speeding tickets. I'm not talking about how you drive you car, but how you deal with the speed of the internet and how fast we can communicate with each other. This entry is based on my own personal thoughts on keeping connected to your life.

A key concern that we all have, is how to keep the work life separate from the personal life, especially if we travel a lot for work purposes. A simple solution to that, based on my perspective, is to buy a hard drive disk that works with your work laptop chassis. For the low cost of about $50, I could pack my personal hard drive in my carry on luggage, and using a small Phillips head screwdriver, could get online in the hotel, check all of my PERSONAL emails, Facebook, and search for whatever I wanted, without my company tracking it. If they are going to provide me with the tools to do my job, why not take advantage of that for personal reasons when I have to travel? Unscrew one or two small screws, slide out the company hard drive, slide in my personal one, and not worry about "big brother" watching me. I didn't have to lug a second laptop around with me to get through the TSA.

English: McDonalds' sign in Harlem. (Photo credit: Wikipedia)

The second largest concern we have, is how to "get online." Having a smartphone helps, since most cell phone companies have them, but I want to view things in a larger perspective, and keep my phone bill low. Free wi-fi is available all around us. You just have to find some close to you. Sure, most hotel chains offer it now, but what do you do when you are in the middle of nowhere? Go to a Starbucks or McDonald's or even local library. Sure, you might have to buy a horrible tasting coffee or burger, but you get access to the internet. If you live in an apartment complex (like I do), consider going "halfsies" with a neighbor on the bill. You can both set up your own profiles, but cut your costs in half.

So, it comes down to the last point, "I'm not a geek, I don't want to work that hard, what can I do?" See the Portable Apps entry. My first iPod is now nothing more than a USB drive. But I use it more now than I did for my music. There are ways out there, to expand your horizon, that don't impede you. Embrace life...live it...connect in any way that you can.