Optimal Finance Daily - Financial Independence and Money Advice

1922: [Part 2] The True Cost of Commuting by Mr. Money Mustache on Calculating the Costs of Daily Travel and Gas Prices

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Jun 12, 2022
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INSIGHT

Commuting Drains Real Wealth

  • Living closer to work can be worth far more than most people realize because commute costs compound quickly.
  • Each mile of round-trip commuting can cost roughly $795 per year when accounting for vehicle costs and time value.
ANECDOTE

Neighbors Chose Scenery Over Short Commute

  • He describes a couple who chose a scenic neighborhood and accepted an 80-minute round-trip commute.
  • The trade-off costed them time, money, and potential savings for things like college funds.
ADVICE

Pay More For Proximity If It Saves Commute Cost

  • Use commute-cost math to decide how much extra to pay for housing closer to work.
  • Pay up to about $15,900 per mile closer (single-worker) because it often saves more than it costs over time.
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