Episode 108: On this episode of 2 Frugal Dudes, we’re talking about how to survive with only one family car to get you where you need to be. Don’t forget that you can get the replay videos of FI Sumit here! Stay tuned for our next summit in the fall! CHA-CHING!
How to Survive with Only One Family Car
Sean is one of the magical individuals who manages to survive with only one family car and juggles a wife working outside the home, kids with hectic schedules, and so on. How? Here’s his story:
As Sean started his journey with FI, he started looking at ways to save money and reduce anchors to his current lifestyle. One of the most effective ways to do this was to downsize to one vehicle. By having only one family car, Sean has been able to reduce gas costs, mileage, insurance fees, etc.
It does take a bit more planning for running errands, planning a commute, and working around work schedules, but once a routine is in place, the benefits are worth the trade-off while pursuing FI.
Kevin, on the other hand, has three family vehicles for himself, his wife, and their three children.
Renting a Car
The one time Sean rented a car, was after the car broke down just hours before he was taking off for a flight. Luckily, the flight was delayed and he was able to get a rental. As the car breaking down is a huge concern for those with only one vehicle, it was an eye-opening experience.
Fortunately, renting a car is a fairly affordable option for when these situations arise. Sean also uses his bicycle quite frequently and public transit remains a viable option for those in urban areas.
Where Our Money Went
Kevin’s money went to a new savings account with Wealthfront. This new savings account offers a 2.4% interest rate and is supposed to be entirely liquid. Kevin is considering moving his emergency savings fund over to that account. Wealthfront has a lot of valuable calculators and insights for personal finance. Check it out in the links below!
Sean’s money has been going to maxing out his 401k and is very proud to have been able to max it out in the first quarter of the year.
Frugal Tip of the Week
“The only person who loses money is the person who doesn’t invest at all.”