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Each week, we answer money questions from around the web on the NerdWallet app. Here are three of the trending questions from August.
Will shopping around for gas actually save me money?
The short answer is yes. Shopping around for gas can generate significant savings, especially if you drive a lot.
A recent NerdWallet analysis found that rising gas prices increased weekly gas spending by at least $10 in 36 states since late February. If those higher costs continue for a year, that's an extra $520 in fuel costs, on average, per driver, and even more for households with multiple drivers.
Apps like GasBuddy and Upside make it easy to compare nearby gas prices before you fill up and apply any available discounts or cash back when you do. Saving even 10 or 20 cents per gallon can add up over time if you fill your tank regularly.
You can also stretch your savings by signing up for gas station loyalty programs or using a credit card that earns rewards on gas purchases.
Shopping for gas is just one way to save. Also consider your driving habits: Rapid acceleration and hard braking can eat up a lot of gas. Carrying around a trunk full of heavy items also can lower your gas mileage.
It’s also worth getting your car serviced regularly to make sure it’s operating efficiently.
Putting in a little effort upfront can help you save on gas over the long term.
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Do I really need a budget?
You might not need a budget the way you need food, water or shelter, but making one can go a long way toward helping you feel more in control of your spending.
Having a budget doesn’t necessarily mean you have to track every single dollar. In fact, some of our favorite budgeting approaches here at NerdWallet rely on a more big-picture approach.
For example, take the 50/30/20 budget. It refers to putting 50% of take-home pay toward needs, 30% toward wants and 20% toward any debt payments beyond the minimums and savings.
That percentage-based approach gives you flexibility to approximate how much of your paycheck is going toward those different categories. You can also adjust the percentages to better fit your life, such as using a 60/20/20 breakdown.
The reason budgets are so helpful is that they give us guidance on where to put our money. That’s especially important right now, with prices on many everyday essentials rising.
In fact, another recent NerdWallet study found that Americans are paying closer attention to their spending right now. Rising prices were the biggest reason, with 83% saying rising prices and the cost of living have contributed to them tracking spending more closely.
Nearly three-quarters of Americans (73%) said they’re tracking spending more closely because they realized they were spending more than they thought — while 66% said they were motivated by a specific financial goal, like saving for a vacation or paying off debt.
If you’re still not sure whether budgeting is right for you, try tracking your spending for just one month. You can use a budgeting app, simple spreadsheet, or even a pen and paper.
Look for any trends or surprising expenses that add up. Once you have that extra insight into where your money is going, you might decide to make some tweaks — and starting with a budget can help with that.
Should I be ‘loud budgeting’?
The concept of “loud budgeting” has been getting buzz online lately, but should you embrace it?
First, let’s define what it means. Loud budgeting basically just means being vocal about your financial goals.
Telling your friends that you’re going to skip a fancy dinner because you’re saving for a house or paying off credit cards instead of making up an excuse helps keep you on track — and might make it easier for your friends to support you or even share their own financial goals, too.
In addition to holding yourself accountable, expressing goals out loud can also reduce any shame or embarrassment you feel when you decline to spend. After all, opting for frugality is something to be proud of, especially when it’s in support of a bigger goal.
Your friends and family might even help you by brainstorming creative ways to save. Hosting potlucks or game nights, walking in nature or embracing staycation activities can all help. That kind of support and connection can help your relationships, too.
Of course, loud budgeting doesn’t mean sharing all the details about your financial life. You don’t need to share specific numbers around income or debt, for example. Everyone has different boundaries that define their comfort level.
And frankly, we should all be loud budgeting if it helps reduce any shame around talking about money and cutting back.
Especially now, with prices on the rise, we could all use the extra support.
