The cost of commuting
Hubby is changing jobs next week and one of the big perks is a much shorter commute. His drive is going from 33 miles one way to 3 miles, which means he will probably ride his bike most of the time.
I'm happy not just because I think he'll enjoy the new position more, but because of all the money we will save on gasoline! Months ago I got out a pencil and pad of paper and was shocked to find his job cost thousands of dollars to get to every year. I'll admit ever since then I've been nudging him to find a job closer to home.
Now with prices even higher, I'm giddy at the thought of how much we will NOT be spending at the pump. Here is how I did the math on Hubby's yearly gas commute bill, which also works for students driving to school.
Miles driven per day round trip to get to your job x 5 days a week x 50 weeks of work in a year (assuming you get two weeks vacation) = yearly commute miles
Yearly commute miles x 1 gallon/miles per gallon your car gets x $3.60/1 gallon of gas (or whatever you pay) = yearly gas bill to get to work
Goldie, Hubby's 1989...
...BMW convertible, gets about 22 miles per gallon. That means the yearly commute gas bill at his old job was $2,700. If he drives everyday to his new job the yearly commute gas tab will be $245/year or $0 if he rides his bike. That's a savings of at least $2,455!
Another way to calculate the savings is by multiplying your yearly commute miles by $.50, which takes into account the cost of car insurance, maintenance, gas, etc. Using that formula his old job was costing us $8,250 a year to get to and his new job costs $750 to get to if he drives everyday and $0 if he rides his bike. Mondo money in our pocket!
You can also calculate the cost of your commute using this calculator from CommuterPage.com. It also takes into account depreciation and your monthly parking bill.
3 Comments
Leave a comment
About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
My Facebook Profile
Don't forget to talk to your insurance agent - you may be eligible for a new discount, now that Hubby will be driving many fewer miles than before. His car may get rated as a "pleasure vehicle".
Ha! I called my car insurance company and explained the drop in miles and the overall discount they offered was $156 per year!! I was miffed, to say the least. Your suggestion about having Hubby's car rated as a "pleasure vehicle" may give us a larger discount. I'll call back and check. Thanks for the tip! ~Julia
why dont you ask about the new insurance where they chcek your milage to see how much you pay it might be anoying to go and have it checked but figure it as getting payed to see how less you drive.