According to data from the American Automobile Association (AAA), the price of gasoline increased again to $4 per gallon at the beginning of this week, after renewed tensions between the United States and Iran that have generated a spike in the cost of oil, surpassing the barrier of $100 per barrel.

The additional expense that the price of fuel now represents for Americans is added to the high costs of other goods such as food and utilities, which is greatly affecting their monthly budgets.

In this sense, many American households feel insecure about the economy in general and their personal finances, with the most affected being those with low income or resources, who resort to their savings or loans to survive until the end of the month.

In this regard, Evan Potash, executive wealth management advisor at TIAA Wealth Management, commented that “low-income people and those who live paycheck to paycheck are the hardest hit, they are already struggling financially due to higher inflation in food prices and rents,” he said.

For his part, Matt Twiford, CFO of Pegacorn Group, points out that "for a regular public transport user, a sudden increase in prices usually means an additional expense of between $40 and $100 per month. It is painful, but knowing the real figure allows you to know how much you need to adjust your budget instead of panicking and cutting excessive expenses."

Therefore, specialists consider that knowing your expenses will be the first step to making a good monthly budget, but they also advise taking other measures to avoid high prices, such as:

Avoid financing fuel with credit cards

Although many are using their credits for basic expenses, specialists point out that regardless of the discounts, the high interests can represent a higher payment in the long run. “If that extra $75 at the pump forces motorists into revolving debt, they could pay interest for longer than the price increase,” says Steven Min, chief credit officer at Credit One Bank.

Save fuel

One of the ways to save on gasoline is to take advantage of discounts and offers at retail clubs or supermarkets, perform vehicle maintenance that prevents excessive fuel consumption, sign up for reward programs, among others.

According to Min, creating a small fuel cushion to be prepared when prices rise unexpectedly, rather than reacting to them, will always be a good way to save.

Protect your finances

Rising fuel prices should not put your long-term or retirement savings at risk. In this sense, Allison Donaldson, CFP, financial advisor at HTG Advisors, recommends maintaining a plan to save a fixed amount per month and adjusting other areas if your gas budget has to increase. “A good savings plan allows diversification,” he said.

Many oil specialists mention that gasoline prices could continue to rise in the coming weeks if the conflict in the Middle East continues, so adjusting your budget will allow you to feel less insecure as prices rise.