In the past week I have done two radio interviews on the gas situation, which the media refers to as the "Gas Crisis". I know this increase in prices is causing a lot of concern and pain for many Americans but crisis seems to be a bit exaggerated. A crisis to me would be earthquake, terminal disease, some major disaster, etc.
Here is the reality on this gas situation. America has paid below world prices for years and not just for gas but food and housing as well. Take a trip to Europe and see what they pay for gas, food and housing and you will know what I mean. Also, Americans have no discipline when it comes to how they use gas, electricity, or food. We drive when and where we want, waste energy like a drug addict uses drugs and we eat too much. We are a country of people that not only waste gas and food but more importantly waste time and effort. The waste of time and effort is the real crisis in America not the cost of fuel. Wasted efforts, wasted time, too little production, too much spending, not enough saving, too much attention on the problem and not enough action regarding a solution!
When individuals or a society won't discipline themselves then the market kicks in and will raise prices in order to discipline the individuals. As long as there is demand and use of a product the prices go up to the point where people finally say, "ok that hurts, no more" and start to limit the use of the product. At that point prices will stop rising.
Now I am not suggesting you quit using gas as a way to solve the problem but I am suggesting that you come up with a solution, quit wasting time, quit complaining and do something productive to counter the increase in prices. I could give you little tricks on how to best conserve gasoline like; fill up in the morning, pump on slow mode, fill up when you get to 1/2 of a tank, coast to the stop lights, and don't rabbit start but these things will only save you pennies and are ultimately not a solution to the problem.
These are the five steps I would suggest to handle the increase at the gas pump:
1) Clearly identify the real problem which is a lack of production. You have to produce more.
2) Change the focus of why you use your automobile. Use your automobile like a piece of equipment and its job is to transport you from one location to another in order for you to produce money. Most people use a car in order to spend money rather than increas production. A guy get in his car and drives to the grocery store to buy a box of cigarettes. He spent half a gallon in gas to make a 5 dollar purchase and then complains the next day about what it cost him to drive to work. Use the car like a piece of equipment and only use it to handle production activities!
3) Know your Exact Increase Cost in Gas. (this is critical to get understanding of the actual cost to you). If you drive 15000 miles a year and your car gets 18 mpg, you are going to need to purchase 833.3 gallons of gas x 4 Dollars equals 3333 a year. You probably spent 2083 last year so the difference is 1217 dollars. (Formula- Miles driven/MPG = Gallons Needed X Cost of Gallon- Cost last year= Increase. (If you consider 1217 dollars a crisis you have led a sheltered life.)
4) Figure out exactly what you have to do to make up the 1217 difference. This is the most important point! Figure out what you have to do to solve this 1217 situation. Production is the only solution to money problems! Produce and Create. Raise your prices, earn a promotion, take on another job, do some work for your rich neighbor- PRODUCE!
5) Economize- Reduce all use of your automobile to ONLY those things that are productive or absolutely necessary. Make a list of only those things that are absolutely necessary use of your vehicle. You can probably decrease your use of fuel by 25% by not wasting trips. Example- Shop on the way home from work and only shop twice a month.
Simply put, use the gas when you have a chance of producing money and discipline yourself not to use gas when you are just going to spend money. Also quit wasting your most valuable assets of time, energy, effort and action!
Grant Cardone, Author, CEO and Entrepreneur
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