Fuel savings… are you looking in the right place?
Fuel prices are one of those things that are always in the news. And they’ve been quite topical of late with tumbling oil prices and fuel now at prices not seen for decades!
Petrol, diesel, regardless which fuel powers you from A to B, fuel prices are one of those things we are always sensitive to.
We see stories of how we in the country get stung with higher prices than our city counterparts. We see different prices from one petrol station to the next and we are enticed by discounts of 4 cent per litre if we use a membership card or a discount voucher.
I’m going to put it to you that we’re getting played for fools by our media. Fools in the sense that we’re led to believe that differences in fuel prices are more important than they really are. And this then drives our behaviour.
Let’s ponder this for a moment… In 2018, the average passenger vehicle used 1,366 litres of fuel per year, or 3.7 litres per day.
If you could save 4 cents per litre on every one of those litres, that adds up to a total annual saving of a whopping $54.64.
Every dollar counts. Canstar Blue has found that 49% of people are willing to drive further to the next fuel station if it meant saving money. We’re made to believe and then act on the basis that miniscule savings on fuel are so important that 1 in 2 people are willing to drive further to potentially actually save nothing by the time the extra fuel used is taken into consideration.
I wonder how much of a difference $54.64 per year is going to make to your long term financial future? And I’m going to argue that we’re being led to focus too much on the wrong fuel savings.
What fuels your lifestyle? Money… right? And what is going to fuel your lifestyle when you want to stop working? Your superannuation.
I want you to pause for a moment and think about whether you’ve spent more time in your life thinking about saving money on petrol or your superannuation?
I’m regularly saving people thousands of dollars in fees on their superannuation and it’s not just a once off saving… that saving is then locked in every year going forward. Should you be one of those people?
If you have a balance of $100,000 in your super and you’re paying a fee of 1.3% per year, that equates to $1,300. If you can reduce that to 0.3%, that fee drops to $300. The easiest $1,000 per year you’ll ever save!
I’ve used $100,000 as a round number, imagine what those savings start to look like if you have $200,000, $500,000, $700,000 in super or more. Imagine what those savings look like when a couple can both get those kind of savings. Imagine what those savings look like, if heaven forbid, you’re paying more than 1.3% per year in fees, and I’ve seen plenty of cases like that!
And if you’re not actually sure what the fees are that you’re paying, then we definitely need to talk!
Now, compare this to a saving of $54.64 per year on the fuel you use in your car and ask yourself the question, “Am I looking for fuel savings in the right place?.”
Our media condition us to focus on the things that are in front of us right here and now. That’s why fuel is often in the news, we fuel the car up regularly, often every week. Things like our superannuation rarely get any attention, maybe only at annual statement time if we’re lucky.
My business is built on helping my clients focus on the things that are really going to add up in the long term. And while saving money on fuel for the car is worthwhile, if you want to fuel the lifestyle you enjoy in the years ahead, perhaps it’s time you booked a time to chat with your local, independent financial adviser.
After all, saving money on super is just the tip of the iceberg when it comes to the strategies available that could radically alter your financial future.
Cheers,
Daniel
If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au.
Daniel McGregor is the man behind Wealth Train and is a member of the Profession of Independent Financial Advisers. This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.
Daniel McGregor and Wealth Train are authorised representatives of Independent Financial Advice and Education AFSL 520963