We've all noticed that we're paying more at the pump lately. While we realize that gas prices rising is taking a few extra dollars from our accounts lately, what we may not realize is how seriously it is impacting our finances.
What is immediately affected is our discretionary income. That includes the money we put out for things such as shopping and going out to eat.
Consumers are turning towards smaller fuel-efficient vehicles, rather than large gas-guzzling SUVs.
But our long-term plans are also impacted. Higher gas prices can even affect housing in some suburban areas.
"If gas prices stay high, you'll see it goes into the decision making throughout every aspect of your life," Dan Hernandez, financial advisor from Lincoln Investment said. "If you're going to buy a house and commute to work, you're going to start thinking about how much that commute will cost you."
"You have to factor that in, it's a cost like any other cost," Hernandez said. "If you're commuting to work and have that cost, it's like your mortgage, it's like rent, it's like any other expense you have."
Don't worry just yet though.
"Don't forget, we're headed into Summer and gas prices always go up pre-Summer," Hernandez said. "I think four or five months from now we'll see them come down again, and it won't be such a big issue."
"The likely effects are going to be some reduction and discretionary spending."
To have your questions answered and for more information, you can e-mail Dan Hernandez at DHernandez@LincolnInvestment.com.