A new report shows Americans are spending most of what they’re saving on lower priced gasoline, according to the Washington Post!
Extra savings being spent on food
When we first saw lower gas prices a year ago, there were reports about people heavily saving the money because they thought the savings would be short term. Now that it looks the savings are here to stay, people are spending on two things.
First, eating out. That’s why a lot of restaurant chains are reporting better sales numbers these days. Second, at the supermarket. People are stepping up to more expensive brands. Grocery shoppers were pinched all during the Great Recession. Now they’ve opened up the wallet some.
As far as saving, Americans on average save about a nickel of each dollar we make. It’s better than where we were, but you really need to save at least a dime out of every dollar you make as the entry point to financial freedom.
The greatest savings from lower gas prices have been away from the coasts where people tend to commute further in bigger vehicles. The savings are magnified there. Not so much on the Eastern seaboard and the West Coast.
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Here’s how much you’ll save on winter heating costs
Let’s look forward at the energy outlook for the remainder of the year. The newest predictions from the Energy Department call for the greatest impact in the Northeast where heat your home with oil is common. Those folks can expect costs down about 15% to 25% year over year since 2014.
For those who heat with natural gas, you can expect costs down around 10% or so from a year ago.
But here’s the unspoken additional benefit: Electricity generation in this country has moved heavily to natural gas and renewables. So that combination is leading to lower pass-through fuel charges on your electric bills too!
No matter which way you slice it, the energy equation is good all the way around! That is, of course, barring any unforeseen events in the world like natural disaster or a heinous act of terrorism.
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