Comments on: The Impact of Gas Prices on the Family Trip http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: mike3 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-313818 mike3 Sat, 24 May 2008 04:09:14 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-313818 "Vito" says: "How is it most people stand idly by and swallow whatever garbage is thown out." Maybe because they DON'T KNOW ***WHAT*** TO DO??? "What needs to happen is get us out of the middle east, start concentrating on our problems here and forget the GLOBAL ECONOMY. The rest of the world is laughing at us." Yes, we should. Time to abandon BOTH wars -- Iraq AND Afghanistan. Actually abandon the whole damn "war on terrorism" charade as well. And the rest of the world is in deep s*** too, it's just as foolish as us. But I'll agree that we'd better concentrate more on resolving our own folly. If we could really solve all our problems we need not be dependent on the global economy and so it can deep-six itself (it will as they're just as dependent on oil or at least dependent enough that an ever-widening supply/demand gap assured by Peak Oil Fact will have serious detrimental effects) and yet we'd still have some semblance of a country and order here. But if we don't, we'll blow it and go and crash just like all the other fools who are laughing at us for our foolishness yet not taking huge action to fight their own either (I haven't seen many if any non-American countries, nor America of course (gee what a shock), pledge 100% oil independence by 2040 like they need to since 2040 is the date oil becomes worthless as an energy source (EROEI < 1) according to the Hubbert Curve Model that is proving to be very accurate.). Remember: there will come a time when all those big oil profits will dry up and even the Rich(tm) will find themselves in deep, deeeeeeeep poverty just like everyone else............. talk about gloom/doom but that's why we'd better DO SOMETHING BIG to turn this around even if it means giving up the precious "American Way of Life(TM)" because it is actually a bad thing. “Vito” says:
“How is it most people stand idly by and swallow whatever garbage is thown out.”

Maybe because they DON’T KNOW ***WHAT*** TO DO???

“What needs to happen is get us out of the middle east, start concentrating on our problems here and forget the GLOBAL ECONOMY. The rest of the world is laughing at us.”

Yes, we should. Time to abandon BOTH wars — Iraq AND Afghanistan. Actually abandon the whole damn “war on terrorism” charade as well.

And the rest of the world is in deep s*** too, it’s just as foolish as us. But I’ll agree that we’d better concentrate more on resolving our own folly. If we could really solve all our problems we need not be dependent on the global economy and so it can deep-six itself (it will as they’re just as dependent on oil or at least dependent enough that an ever-widening supply/demand gap assured by Peak Oil Fact will have serious detrimental effects) and yet we’d still have some semblance of a country and order here. But if we don’t, we’ll blow it and go and crash just like all the other fools who are laughing at us for our foolishness yet not taking huge action to fight their own either (I haven’t seen many if any non-American countries, nor America of course (gee what a shock), pledge 100% oil independence by 2040 like they need to since 2040 is the date oil becomes worthless as an energy source (EROEI < 1) according to the Hubbert Curve Model that is proving to be very accurate.).

Remember: there will come a time when all those big oil profits will dry up and even the Rich(tm) will find themselves in deep, deeeeeeeep poverty just like everyone else…………. talk about gloom/doom but that’s why we’d better DO SOMETHING BIG to turn this around even if it means giving up the precious “American Way of Life(TM)” because it is actually a bad thing.

]]> By: DebtFreeDave` http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-309646 DebtFreeDave` Fri, 16 May 2008 21:45:50 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-309646 I just got back from Ireland, gas was over $9 a gallon. I'm glad to back in the states for plenty of free gas. I just got back from Ireland, gas was over $9 a gallon. I’m glad to back in the states for plenty of free gas.

]]> By: Guido http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-307958 Guido Mon, 12 May 2008 19:45:25 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-307958 It’s all about supply and demand or the perception of. Demand for oil and oil based products is probably at an all time high, supplies are steady or if you listen to certain documentaries declining, this will continue the trend of increasing oil prices. Sooner or later the price will come to a break point and consumers will look for other alternatives to oil. Prices will not stabilize until the factors that drive supply and demand change. Oil companies are not the only ones making money on this serge in oil prices, land owners, well management companies and oil supply services are cashing in too. I remember several years ago when my mother-in-law’s brother had to close up shop because well owners were shutting down rigs because it cost more get the oil to market than what they were getting paid. Does anyone remember the gas lines of the 1970's? The Japanese cashed in by introducing fuel efficient cars, and Americans had to look for alternatives such as walking, biking, and mass transportation. I personally have invested in bicycles for the family. We still drive the automobile, however if the opportunity presents itself we will take the bikes now. Just the other day my son and I did a community service project at a nursing home 5 miles away. Normally we would drive but this time we left a little early and rode the bikes. Not only was it fun for him but healthy for both of us. I may not seem like much but it adds up. The question is how much more can gas go up before chaos breaks loose? It’s all about supply and demand or the perception of. Demand for oil and oil based products is probably at an all time high, supplies are steady or if you listen to certain documentaries declining, this will continue the trend of increasing oil prices. Sooner or later the price will come to a break point and consumers will look for other alternatives to oil. Prices will not stabilize until the factors that drive supply and demand change. Oil companies are not the only ones making money on this serge in oil prices, land owners, well management companies and oil supply services are cashing in too. I remember several years ago when my mother-in-law’s brother had to close up shop because well owners were shutting down rigs because it cost more get the oil to market than what they were getting paid.
Does anyone remember the gas lines of the 1970’s? The Japanese cashed in by introducing fuel efficient cars, and Americans had to look for alternatives such as walking, biking, and mass transportation. I personally have invested in bicycles for the family. We still drive the automobile, however if the opportunity presents itself we will take the bikes now. Just the other day my son and I did a community service project at a nursing home 5 miles away. Normally we would drive but this time we left a little early and rode the bikes. Not only was it fun for him but healthy for both of us. I may not seem like much but it adds up. The question is how much more can gas go up before chaos breaks loose?

]]> By: Jeremy http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-307919 Jeremy Mon, 12 May 2008 17:43:05 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-307919 You're right, JLP. It was still fairly early and I was cranky without my coffee. You’re right, JLP. It was still fairly early and I was cranky without my coffee.

]]> By: JLP http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-307886 JLP Mon, 12 May 2008 15:43:37 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-307886 Jeremy, I thinks it's best to ignore silly comments like that one. Clearly they don't understand how the oil business works. Jeremy,

I thinks it’s best to ignore silly comments like that one. Clearly they don’t understand how the oil business works.

]]> By: Jeremy http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-307881 Jeremy Mon, 12 May 2008 15:34:49 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-307881 Why is it wrong for a company to make a profit? While most oil companies are seeing record profits, the profit margins are actually low to average across the board. The S&P energy sector which includes the big oil companies has a profit margin of about 10%. If you have $100 billion in revenues and see a 10% profit, sure, you have $10 billion in profits, but as a percentage, that isn't very much. If you owned your own business and only realized a 10% profit, you'd be broke. Selling $100,000 worth of widgets only to pocket $10,000 isn't going to pay very many bills. If you want to complain about oil company profits, you should also look at what your bank is pocketing. Citigroup, Bank of America, and HSBC come in right below, and even higher than some oil companies in terms of raw profits. Damn those banks for making billions! If you are mad that a company is making money, then just become a shareholder so you can pocket some of the profits as well. Personally, I like finding easy ways to make money. It is a lot more enjoyable than worrying and complaining about everything. Why is it wrong for a company to make a profit? While most oil companies are seeing record profits, the profit margins are actually low to average across the board. The S&P energy sector which includes the big oil companies has a profit margin of about 10%. If you have $100 billion in revenues and see a 10% profit, sure, you have $10 billion in profits, but as a percentage, that isn’t very much.

If you owned your own business and only realized a 10% profit, you’d be broke. Selling $100,000 worth of widgets only to pocket $10,000 isn’t going to pay very many bills.

If you want to complain about oil company profits, you should also look at what your bank is pocketing. Citigroup, Bank of America, and HSBC come in right below, and even higher than some oil companies in terms of raw profits. Damn those banks for making billions!

If you are mad that a company is making money, then just become a shareholder so you can pocket some of the profits as well. Personally, I like finding easy ways to make money. It is a lot more enjoyable than worrying and complaining about everything.

]]> By: Vito http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-307870 Vito Mon, 12 May 2008 14:46:42 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-307870 What is wrong with people in this country? The oil companies are making billions IN PROFITS. What will it take for us to realize where we are heading? People are so complacent. Remember the Boston Tea Party? How is it most people stand idly by and swallow whatever garbage is thown out. What about our kids and their future? What about the ramifications of higher fuel costs? What needs to happen is get us out of the middle east, start concentrating on our problems here and forget the GLOBAL ECONOMY. The rest of the world is laughing at us. What is wrong with people in this country? The oil companies are making billions IN PROFITS. What will it take for us to realize where we are heading? People are so complacent. Remember the Boston Tea Party? How is it most people stand idly by and swallow whatever garbage is thown out. What about our kids and their future? What about the ramifications of higher fuel costs? What needs to happen is get us out of the middle east, start concentrating on our problems here and forget the GLOBAL ECONOMY. The rest of the world is laughing at us.

]]> By: KC http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-307861 KC Mon, 12 May 2008 14:13:12 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-307861 I'm with Bob here. I know a few extra bucks can put a strain on a budget, but if it puts a strain on the trip you couldn't afford to go in the first place. Just buy one less pice of crap at Disney World or eat at a less nice place for dinner once or twice during the trip. That will help. And drive smarter - slow down on the highway, coast up to a red light in cities. These are all techniques I use now and they are fairly effective. I'm not saving huge sums of money, but it helps and I should have been doing it all along. I usually drive from Memphis to NC to visit family. When gas was $3 for premium I could get there and back for $120, now its nearly $4 so that is $160 for the trip. Its still way cheaper than flying (recent ticket just cost $250), but at least I don't have to rent a car as family will transport me. So either way its not cheap, but $40 isn't going to keep me from seeing my family. And if time is a constraint $110 isn't going to keep me from flying there. I’m with Bob here. I know a few extra bucks can put a strain on a budget, but if it puts a strain on the trip you couldn’t afford to go in the first place. Just buy one less pice of crap at Disney World or eat at a less nice place for dinner once or twice during the trip. That will help. And drive smarter – slow down on the highway, coast up to a red light in cities. These are all techniques I use now and they are fairly effective. I’m not saving huge sums of money, but it helps and I should have been doing it all along.

I usually drive from Memphis to NC to visit family. When gas was $3 for premium I could get there and back for $120, now its nearly $4 so that is $160 for the trip. Its still way cheaper than flying (recent ticket just cost $250), but at least I don’t have to rent a car as family will transport me. So either way its not cheap, but $40 isn’t going to keep me from seeing my family. And if time is a constraint $110 isn’t going to keep me from flying there.

]]> By: Bob http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-307794 Bob Mon, 12 May 2008 12:00:54 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-307794 I read about families cancelling their family trip to, for example, Disneyland because of the higher price of gasoline. The admission to Disneyland is high; the cost of hotels and meals there is large; many people stop at a motel on the way down or the way back. It strikes me that the higher cost of gasoline is often very little as a percentage of the whole trip. What percentage of the total cost of the family trip does the cost of the gasoline make up? How much greater a percentage of the cost of the trip does gasoline make up in 2008 than in 2007? I read about families cancelling their family trip to, for example, Disneyland because of the higher price of gasoline. The admission to Disneyland is high; the cost of hotels and meals there is large; many people stop at a motel on the way down or the way back.

It strikes me that the higher cost of gasoline is often very little as a percentage of the whole trip.

What percentage of the total cost of the family trip does the cost of the gasoline make up? How much greater a percentage of the cost of the trip does gasoline make up in 2008 than in 2007?

]]> By: Michael http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/comment-page-1/#comment-306794 Michael Fri, 09 May 2008 15:42:03 +0000 http://allfinancialmatters.com/2008/05/08/the-impact-of-gas-prices-on-the-family-trip/#comment-306794 We have a Dodge Intrepid that does ok for a large family car, about 27 - 28 mpg on the highway. We are seriously considering getting a smaller car, especially since we live in rural area and you have to drive to everything - public transportation is not an option. I've even thought about getting a 8 or 10 year old beater (with a four cylinder), and dropping a rebuilt engine and tranny in - would still be cheaper than any new car I could get. There are a lot of trucks and SUV's parked and/or for sale in our area. There is a lot of truck use here by folks that just don't need a truck much or at all; it seems like some guys are literally afraid to be seen driving anything other than a big truck. Unless you are hauling or towing something on a consistent basis, there's just no way you can justify it financially. Renting a big truck makes way more sense for the occasional job where you need a truck. For our summer trip from the South to the Detroit area, we're looking at 5 tanks of gas, based on past use. This week a fill-up was $43 ... so I am guessing at least $215 for the trip. We had the Skybus option last year, and I was able to score some of the $20 tickets and that saved us quite a bit. No such luck this year! We have a Dodge Intrepid that does ok for a large family car, about 27 – 28 mpg on the highway. We are seriously considering getting a smaller car, especially since we live in rural area and you have to drive to everything – public transportation is not an option. I’ve even thought about getting a 8 or 10 year old beater (with a four cylinder), and dropping a rebuilt engine and tranny in – would still be cheaper than any new car I could get. There are a lot of trucks and SUV’s parked and/or for sale in our area. There is a lot of truck use here by folks that just don’t need a truck much or at all; it seems like some guys are literally afraid to be seen driving anything other than a big truck. Unless you are hauling or towing something on a consistent basis, there’s just no way you can justify it financially. Renting a big truck makes way more sense for the occasional job where you need a truck.

For our summer trip from the South to the Detroit area, we’re looking at 5 tanks of gas, based on past use. This week a fill-up was $43 … so I am guessing at least $215 for the trip.

We had the Skybus option last year, and I was able to score some of the $20 tickets and that saved us quite a bit. No such luck this year!

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