We need to remember that the current price for gas STILL hurts, yes it has gotten better, and we are all somewhat breathing as sigh of relief, but remember it can get much better.  Just because gas prices have gone down does not mean you can stop carpooling.  It does not mean you can drive all over town without taking into consideration the cost of gas.  It does not mean you can now buy an SUV when you don’t need one, and it definitely does not mean you can have gasoline fights (I had to).  The bottom line is that if we continue on our road of less oil demand, simple economics tells us that the price will fall further.

America crossed it’s threshold of inelastic demand months ago, and we kept paying because we felt we didn’t have a choice, but by choosing to cut down on demand, the world has seen that Gas is somewhat elastic.  The message has been sent and received, but the message needs to become like those annoying calls from your mother, we need to send it way to often, and as we watch gas go down more, we need to remember, that the extra gas money we have can be put directly into savings and/or investments.

As a side note, I would like to thank Tropical Storm Fay for not turning into a Hurricane and heading into the Gulf to raise gas prices.  It did however cause some severe damage to Florida, please donate to the Red Cross to help cleanup efforts.

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All you have to do is swipe your regular American Express card when it asks for you to swipe your Costco card, then swipe the credit card you want to pay with.  I have not tried this, but I have read numerous accounts of it working.

Apparently it works because Costco has a Costco Amex card, and that card can be used as proof of membership, however the machine is trained to only read the line of code that says it’s an Amex card and nothing else.  Therefore when you swipe a regular Amex card the machine thinks that it’s a Costco member Amex card.

Locate a Costco nearby, try it out and let me know how you enjoy your (roughly) 10 cent discount on gas!

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1. Carpool. Mary and I are lucky enough to work at the same company, so it makes sense for us to carpool. By our calculation, we are saving at least $200 per month by this little step. Sure, it sucks sometimes when one of us has to work later, leaving the other with nothing to do, but we always remind each other how much money and time (Carpool lane) carpooling saves us.

2. Change the oil on time. Staying up to date on engine oil changes helps your car run better and get the most out of your gas. I make sure to change the oil in our Acura every 5,000 miles (Oil Co’s recommend 3,000 miles, car makers say 5,000), and every 7500 miles in our Volvo (synthetic oil).

3. Get a high performance air filter. K&N air filters are expensive, but they pay for themselves in the long run. They come with a 1 million mile warranty because you clean them instead of replace them, plus you can get up to 10% better gas mileage because they allow your engine to breathe better and give you better performance. I received 10% better gas mileage in my old Jeep when I put in a K&N filter. Note: Mr. Dave points out in the comments, that high performance filters are not recommended for some engines like the VW TDi engine.  Though if you have that engine you’re beating all of us on MPG anyway.

4. Inflate the tires. Making sure your tires are inflated to the recommended PSI will increase your gas mileage because a fully inflated tire offers less resistance when you are coasting.

5. Coast. If you have an onboard computer, have you ever set it to give you the instantaneous MPG? You will probably notice that when your foot is off the gas your MPG skyrockets. So if you see a red light ahead let off the gas, there is no need to speed to a stop, it’s just a waste of gas and you’ll have to replace your brakes sooner.

6. A/C or Windows Down? It’s summer, it’s hot, so what do you do? This all depends on what you are doing. If you are driving at highway speeds, roll the windows up and use the A/C, because the drag of the windows being down really hurts the gas mileage. Driving around town? Roll ‘em down!

7. Don’t carry around extra crap! Weight directly affects your gas mileage. The more stuff you have weighing down your car the worse MPG you get. So lose the golf clubs, toolbox, and other random stuff unless you need it.

8. Plan your routes. UPS saved millions of dollars a year in gas by rerouting their trucks to limit the number of left turns, and you can save money too! Plan your routes in the most efficient way possible. Generally right turns are faster and they use less gas waiting at lights than left turns, so why not try it out!

9. Get a gas card! Many credit card companies offer cash back on gas purchases, so why not!? You’re going to be spending the money anyway, so you might as well earn up to 5% cash back. Or even better get a gas company card, brand loyalty pays you in savings!

10. Don’t use E85. What? But the government said it’s going to be our saving grace and I want to help save the environment! I’m all for saving the environment when it is in my financial interest (like compact florescent lights that will pay for themselves), but if it will cost me more money, I’m less likely to do it. E85 is cheaper, and your car may run on it, but according to AutoTrader it contains 27% less energy than 87 Octane (the cheap stuff). That means you get 27% less MPG using E85. The only time it’s in your financial interest is when E85 is less than 73% of the cost of 87 Octane. At my local station, E85 is about 30-40 cents cheaper per gallon than 87 Octane. $3.20 / $3.50 is 91%… not in your financial interest.

I hope you can put these ideas to good use, and if you’ve got any more, feel free to leave them in the comments!

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