
So, as mentioned before, I'm wondering how soon my commute and gas prices will make working so far away no longer viable. (I drive approx 365 miles in a week, a mile costs $.18 currently). Granted, I'm holding on to the love of my life (my gorgeous blue Toyota Tacoma) who eats gas like it's going out of style (it is!) even as it gets more and more stupid. Stupid reason #1? I own land. Land owners need trucks to haul things. #2 Burning Man. #3 I love being up high and able to drive over anything. Our driveway consists of a bit of gravel covering an always changing array of muddy pot holes. In the winter time, I'm guaranteed not ever to be stuck.
However the negatives may soon outweigh the positives. It costs $66 to fill up (this past week) a tank of gas in my truck. Thats $264 a month to drive to and from work. Because my significant portion of my income income is based on commission I'm going to math out the effects of the gas price hike based on our base salary first. Believe me, with the oncoming gas crisis the olds aren't going to be buying as many expensive hearing aids. The olds seem to be a good barometer of the state of things. Incredibly frugal, they flail and hide at the slightest difficulty, a list which includes extreme weather, (ahem, rain) the housing crisis, and the price of eggs.
Anyhoo, Bobby's commute is shorter and his car eats less gas. However he uses 12 gallons of gas a week which costs about $44 (again THIS week). So our total monthly gas bill is currently $440. Our monthly salary total, after taxes, (not counting commission) is about $3200. Which means our percent of income going into gas this month is approx 14%
So at what point does my long commute and my beautiful truck actually force me into poverty?
Assuming that with the gas hike other things will become more expensive too (food, electricity, NOT my mortgage thankfully).
Based on our base salary our mortgage takes up 40% of our income. My truck payment takes up another 19%. Food on average costs about $500 a month making it 16% of our income. That's 75% total so far, not counting the gas costs. Our bills run about 14% of our income. That leaves a measly -3% for niceties and extras. Thankfully occasionally I do get commission which pulls us into the green.
Obviously we are getting darned near the tipping point all ready. I guess in order to do this correctly I have to guess at an average commission rate. This scares me a bit because last time I did that I guessed based on my experiences of the first three months at my job, which turned out to be much higher than the rest of the years sales. That's when we bought the truck. oops! Conservatively I'm going to guess I get an extra $1500 a month commission.
This means gas costs us about 9% of our actual, commission included, income. (I don't trust it for a minute though, tricksy olds!)
With the new figures, including commission:
Home 25%
Food 13% at a predicted gas induced inflation resulting in an extra $100 a month
Truck 13%
Other 10%
Current Gas 9%
That leaves a glorious 30% for other expenses.
So lets project future gas prices:
@$4 per gallon= 10%
@$5 per gallon= 13%
@$6 per gallon= 15%
@$7 per gallon= 18%
Still with me? Me neither. But in the future we'll all look back and laugh when gas was a mere $7 a gallon.
So in conclusion... as long as I make a decent commission and don't add anything to our debt (please don't die bobbys car!) we can endure the $7 a gallon gas hike without losing our home (which is the only constant and decreasing number anyway) or my wonderful job. But it will be tight and very unpleasant. But if the olds act as they normally do, (ie never leave their lairs during a crisis) we... are... screwed!!!
Feel free to correct my maths. My maths have forever been abysmal. I must note, I love the British "Maths" as opposed to "math". It implies a variety, which seems less oppressive.