Sunday, 19 June 2011

reduce motoring costs, retire wealthier by £334 per year

Tony Hayward rocks... just to show the eccentric Brits can make gold out of a messy sandwich. The ex-boss of BP (Britich Petroleum), has constructed an oil and gas installation procurement/asset purchase enterprise that will make him£14m richer if he secures £8bn of aforementioned. great to see someone that was ridiculed and harangued having the gumption and wherewithal to bounce back from a very difficult period.

Which brings me to the next extreme money saving. Driving a vehicle is a necessary evil in this age, although many would argue this point, I am sure. I am forced to use my car to travel to and from work, thus one of the biggest items of expenditure  for me is fuel. There is a very simple method of saving some money which is to look at the petrol prices whilst driving. I have seen a difference of up to 6p per litre in my local area. I think that if you want to save yourself a few pounds then it is worth putting in the effort to find the best value at the pumps.

I will realise a cost saving of £334 p.a. if i save 2p per litre on my annual consumption.

There are many other factors in this equation i.e., purchase a smaller, more economical car? a hybrid, which are expensive or as mentioned, switch to public transport.

Another thing that bothers me is the cost of servicing.
An average service on my car would cost at least £180.
If I price up the spares required (oil filter,air filter,fuel filter - £30, £14 spark plugs, £17 for oil) for a service then they equate to £61 which means i am paying £ 120 for labour
The manufacturers recommended service is 60 points check and as I read it the only technical job is diagnostic testing.

So, i will ring my local servicing mobile technician and ask if I can do part of the service and he stamps the book?
This means I get a service and he gets business.

I save approx £50 on servicing. thus, I save an extra £50 p.a.

Thus, £384 to add to pension pot.

Compound interest and years to retirement would give me £6912 cash or  £9137 at 3%.

Happy motoring....

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