Lehman Brothers, AIG and Freddie Mac/Fannie Mae are not the only ones looking for their way out of a financial crisis. Individuals around this country are searching for opportunities to make their dollars go further. One piece of our budget that we find difficult to cut is money spent on car travel. We need to get to work, take the kids to school, etc. so, particularly in areas without extensive mass transit, a car is nearly essential. You can combine trips or carpool with friends, but what are some other ways to put fewer dollars into the gas pump? Fox Business published an article last year on this very topic and its words continue to be relevant as gas shortages and high prices show no signs of abating.
There are five recommendations listed in the piece, and two of them are as follows:
1. Go Green -- These cars get more miles to the gallon, as traditional fuel is not its only power source. Also, the federal government offers tax credits for people who purchase hybrid vehicles. See the benefit to each model here.
2. Write Off the Miles -- While you are usually not permitted to deduct your mileage driving to and from work, you can deduct noncommuting driving such as making sales calls or deliveries, parking fees and tolls. In fact, the IRS has raised the per-mile tax deduction for the second half of this year as a way of compensating for high gas prices.
If you want to discuss some other ways to save money during these tight economic times, concerning any aspect of your personal budget, please contact me to set up a consultation. I have shared my expertise in personal finance with thousands of individuals and would appreciate the opportunity to help you as well!
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