Tip #6 – Use gas prices to become your own hedge fund
Take the money you’re saving on gas and automatically hedge against any future increase in fuel prices. Consider how much you’ve paid for gas a week when it was at its highest. As the cost per gallon decreases, instead of keeping that extra amount in your checking account, set up an automatic transfer equal to the fuel amount difference to a saving account. Give it a nickname, like Fuel, so you’ll know what it’s for. If gas prices go up, you’ll have this money saved to use to hedge against the new higher gas prices. Re-evaluate the price of gas every 3 months and adjust your weekly savings amount as needed. This tip can really be applied to anything that has a variable cost.