Note that this article has been updated to also include some of the private discussions with thought leaders in the past. Other private thoughts that I share with thought leaders will not be found on this post. In addition, all external links may expire at some point and also may contain information that later changes. You can read my final overview of my research into the Millennial generation along with what I predicted and what happened as they matured at this link. While I still speak about Echo Boomers and iGenZ privately, I seldom add new articles to this specific blogspot site. If you're reaching out about a speaking engagement, you can contact me at the research firm SqlinSix. This post may have been updated to reflect new information, remove expired information, or to retain for thought leaders.
Millennial Question: Gas prices are killing my wallet. My job cut back salaries, but didn't lay any of us off. With fewer dollars this year and higher gas prices, what practical steps can I take?
Answer
There are five potential solutions for higher gas prices that only involve practical steps. For specific financial advice, seek a financial advisor, as you may have some financial options relative to your work or housing situation that could help you.
1. The most important solution is to adjust all your goals/plans/dreams for high energy prices. Assume, from now on, that gas prices will be ten dollars a gallon. Why do I write this? Because when we prepare for the worst, the worst doesn't surprise us as well as the worst is factored into our plans. Think about how many people would be shocked by $10 a gallon. But if you prepared for it, then you would be ready.
As a pertinent addition to the above, I know several geologists who state that the world has enough oil, but that it's difficult to obtain this remaining oil. In other words, oil prices may rise because it will cost a significant amount of money to obtain the world's remaining oil. Outside of innovation or reduced demand, we may see permanently higher oil prices than the $0.89 per gallon that I saw growing up. In fact, after this oil price spike to $4-$5, I doubt that we'll see a sustainable oil price-per-gallon below $2 for a long period of time.
In the least, I wouldn't be planning for a low oil price going into the future.
2. How can you minimize your travel? For instance, if you commute long distances to work, can you move closer to work? Can you minimize the amount of time you travel - whether to the store, social events, et cetera. Can you consolidate activities - for instance, shop after you spend time with friend by choosing a social location with good stores near.
Remember, what you see now may be the norm.
This is also another recommendation to speak with a financial advisor, who has some tax experience. Ask them if you can save anything here for commute or other activities. You may not have an option, but it's always worth a check.
