By Scott Hannah

Q. Like a lot of busy families we play taxi for our kids outside of school and work. Having two vehicles is as much a necessity as a convenience. However, with the rising price of gas, we’re noticing that our credit card bills keep getting higher because we’re paying for some living expenses, like gas, on credit just to get by. How do we manage this when gas prices keep going up?

A. Your experience with rising gas prices is, unfortunately, something many people are facing. I recently stopped at a gas station and noticed several unclaimed receipts. Out of curiosity, I glanced at them while waiting for my tank to fill and was surprised to see that many purchases were just $5 or $10 at a time. It was a clear sign that many drivers can no longer afford to fill up their tanks as they once did, instead opting to buy only enough fuel to get through the next few days.

Save $4,000 to $10,000 per Year: Try Using Only One Vehicle

I would encourage you and your wife to experiment with becoming a one-vehicle household. Try going without one car for a few weeks to see if it’s feasible for your lifestyle. While fuel costs are noticeable, overall vehicle expenses add up to much more.

For example, using simple estimates—$125 per month for insurance, $200 for gas, and $75 for maintenance—a family with one car instead of two could save over $4,000 annually. If you’re also making monthly payments on a second vehicle, covering parking fees, or facing major repairs, the total savings could exceed $10,000 per year.

Optimize Vehicle Use or Consider Vehicle Alternatives

Alternatives to owning multiple vehicles include organizing a vehicle-sharing schedule, carpooling with family or colleagues, using public transportation, or opting for walking or biking when possible. Even if you rely on a taxi once a week, it can still be more cost-effective than maintaining a second car over the course of a year.

If reducing to one vehicle isn’t an option right now, consider ways to cut costs, such as telecommuting one day a week, arranging carpools for your children’s activities, using public transportation a few times per week, and keeping up with regular vehicle maintenance to ensure optimal efficiency.

Track Your Expenses

I would also encourage you to track all of your expenses for one month. You’ll not only find out exactly what you’re spending on transportation costs, but you’ll also gain insight into all of your spending. If you do need to spend less to afford having two vehicles, you’ll know what’s realistic. The last thing you want is your hard earned dollars wasting away faster than your gas when you’re idling at a stop light.

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