Oil Price Hits Record High. Perhaps a New Job?

The oil price has hit a new high past $100 a barrel today. See CNN article. That means sooner or later, the gas pumps will suck our wallets dry at an even faster pace. Yay!

For me, I have a decent commute at a little below 30 miles one-way, though I can’t say it’s long base on California Bay Area standard. But I will say that I am lucky to have the luxury of reverse traffic. Ultimately, my work commute is most of the driving I do.

I pump gas once every 5 days on average, which means on 6 times a month on average. Each time, it takes $35 – $40+ to refill my Sciton tC. Let’s say it’s $40 for convenience. Here’s a bit of calculation:

Average monthly gas bill: $40 x 6 = $240
Average yearly gas bill: $240 x 12 = $2880

Now, let’s say I’m in the 28% tax bracket:

Total pre-tax salary for gas bill: $2880 / (100%-28%) = $4000

That’s a hefty amount of money. In effect, it means that I can take a pay cut of $4000 annual salary to have another job that allows me to walk or bike to work and simultaneously, I get to keep the same financial scenario. Better yet, I will likely save on commute time and also pollute the environment less. If the gas price continues to rise, I should seriously consider this option with all these advantages, huh?

Well, I’m not quite serious about a new job, but for those who commute even further, which are plenty in Bay Area, perhaps this shall be an option to consider if they want to curb spending?

Additionally, if we speak in terms of the big picture, increasing gas price also means inflation for grocery, residential gas bill, flight ticket, shipping charges… so in essence, most of our consumption if not all. As such, the effect is already glaring if you did any grocery shopping recently.

May I say, “All hail this black liquid gold that rules our lives with such dominance.”

Originally posted 2008-01-04 00:33:31. Republished by Blog Post Promoter