How much are you really saving to be there for that sale? This is a true situation at our house. My wife drives a Dodge Ram, it gets 12 mpg (miles per gallon). Gas in our area is $2.45 per gallon. The mall is 18 miles each away. If she cuts back and only goes to the mall once a week, instead of twice a week, how much would she save in one year? ($7.53, $7.35, $8.35, or $382.20)
(Steve, DebtSmart Reader, submitted this question.)
The solution to this problem is very straightforward:
1) 18 miles each way means…
2) 36 total miles per week saved.
3) At 12 miles per gallon, it takes 3 gallons to travel 36 miles.
4) At $2.45 per gallons, 3 gallons cost $7.35 each week.
5) One year’s savings is 52 weeks of $7.35 which is…
6) A total of $382.20 save each year!