Optimal Finance Daily - Financial Independence and Money Advice

1921: [Part 1] The True Cost of Commuting by Mr. Money Mustache on Calculating the Costs of Daily Travel and Gas Prices

Jun 11, 2022
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ANECDOTE

Couple's Costly Move Example

  • Mr. Money Mustache describes meeting a couple who planned to move into his neighborhood despite a long commute.
  • Their 38-mile round trip would cost $19/day and erode $125,000 of wealth over ten years.
INSIGHT

Commute Time Equals Lost Work Years

  • Long daily commutes effectively add nearly an extra workday to each workweek and cost significant lifetime time.
  • The time and risk of commuting can equal over a year of lost working life every decade.
ADVICE

Replace Two Cars With One Cheap Car

  • Sell two financed cars and buy a single ten-year-old hatchback, keeping $10,000 as reserve.
  • Live within biking distance of both jobs to save roughly $115,000 over ten years.
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