Budget

I have read articles that bemoan the pain that rising gasoline prices are putting on families in our country. Families now can't afford to get further into debt because they have to pay their increasing gasoline (and food) bills.

The real problem is that America is up to its eyeballs in debt! People can't afford any additional expenses because they systematically (more than) maximize their income. The problem isn't with income, the problem is with spending.

We budget $200 per month for gasoline, and never use that much unless we go on trips. When we go on trips, we use our Vacation budget account for gas. A 10% rise in gas prices raises our potential gasoline expenditure by $20 a month. Not earth-shattering by any means. If you spend $1,000 per month on gas, this will raise your expenditures by $100 per month...also not an earth-shattering figure-->unless you've maxed everything else out and are already spending more than you earn. We do have a negative savings rate in our country, by-the-way.

I've made financial mistakes in the past and will probably make more in the future. This is one thing I am certain of: Having a budget that is less than you actually make is much better than spending more than you earn.

Don't expect a government bailout if you can't afford to pay an additional $20-$100 in gasoline. Bailouts are reserved for those who are monumentally more stupid and/or greedy!