Stock Market

Dollar cost averaging is an investment method used to reduce exposure to risk associated with making a single large purchase. You buy a fixed amount of shares at regular intervals. This means that you buy more shares when the price is low and less shares when the price is high. While not being as profitable as buying all your shares when the price is low it reduces the risk of having bought all of your shares when the price was high.

Though dollar cost averaging is not a smart investment method because investing in the stock market involves a lot more factors that buying a fixed amount of shares at regular intervals, it can be used to effectively reduce the cost of buying gas for you automobile.

Gas for Your Car

No matter what the gas price is you are going to have to drive you car. You can reduce this cost by filling up more often. Since gas prices fluctuate every day you can dollar cost average gas. As long as you don't go out of you way to buy gas.

The following table gives the cost of gas in Toronto every day for last month and the cost of 300 Liters of gas purchased at 10L, 20L, 30L and 40L at a time. Buying gas 10L would have been $0.56 cheaper than buying 40L at a time.

Not much but it adds up.

You would have saved more had you filled up on March 18, when gas was 103.6 but predicting gas prices has become like predicting the stock market. You never know what is going to happen tomorrow. You only know what happened yesterday and wish you have know it the day before.

Later on I am going to write a post on Advanced Gas Saving Techniques. It will be an analysis on gas trends over the past 5 years. When gas prices traditionally go up. Maybe even create a google calender on when to buy and how much based on previous years trends. This calender however will not be able to predict when the next oil refinery fire will break out.


Date Price Liters Cost Liters Cost Liters Cost Liters Cost
29-Feb 108.9 10 1089 20 2178 30 3267 40 4356
1-Mar 104.4 10 1044





2-Mar 104.5 10 1045 20 2090



3-Mar 104.5 10 1045

30 3135

4-Mar 105.2 10 1052 20 2104

40 4208
5-Mar 103.1 10 1031





6-Mar 105.3 10 1053 20 2106 30 3159

7-Mar 105.3 10 1053





8-Mar 107.7 10 1077 20 2154

40 4308
9-Mar 107.7 10 1077

30 3231

10-Mar 108.9 10 1089 20 2178



11-Mar 109.2 10 1092





12-Mar 108.6 10 1086 20 2172 30 3258 40 4344
13-Mar 107.6 10 1076





14-Mar 107.1 10 1071 20 2142



15-Mar 107.1 10 1071

30 3213

16-Mar 107.1 10 1071 20 2142

40 4284
17-Mar 107.1 10 1071





18-Mar 103.6 10 1036 20 2072 30 3108

19-Mar 106.9 10 1069





20-Mar 103.6 10 1036 20 2072

40 4144
21-Mar 106.1 10 1061

30 3183

22-Mar 106.1 10 1061 20 2122



23-Mar 106.1 10 1061





24-Mar 106.1 10 1061 20 2122 30 3183 40 4244
25-Mar 107.6 10 1076





26-Mar 108.4 10 1084 20 2168



27-Mar 108.9 10 1089

30 3267

28-Mar 107.1 10 1071 20 2142

20 2142
29-Mar 107.6 10 1076






106.58 300 319.74 300 319.64 300 320.04 300 320.3
Savings



-$0.10
$0.30
$0.56

Source: torontogasprices.com

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