On this episode of 2 Frugal Dudes, we’ll be talking about reducing transportation costs. Your transportation costs are too high and it’s time to reflect on what you really need!
Do you have more car then you need? Can you change your work hours? Do you know how to ride a bike?
There are many options for transportation to play with and taking the time to make your commute more efficient can significantly help your budget. CHA-CHING!
Both Kevin and Sean now have the benefit of working from home, which saves them a lot of time (and money) everyday. With Sean’s wife working just down the road, they keep one car and he’ll use his bike to go grab it if he needs it.
In addition to the opportunity cost of not driving to work, there are a lot of other costs being saved. These reduced transportation costs include:
- automobile insurance
- car payments
Reducing transportation costs means that you ultimately reduce your monthly and annual expenses. With rising fuel costs, being strategic and reducing transportation costs can help you save money for things that matter.
Public transit in Kevin’s area is a joke. It’s highly inefficient and can take three additional hours and multiple transfers to get to where you need to be. For many, public transit is a great cost reduction strategy and helps reduce your carbon footprint. Unfortunately, it’s not an option for everyone. You have to consider your opportunity cost when considering if it’s a cost effective strategy.
Cycling is a great addition to your transportation strategy that will not only help you save money but also cuts your emissions and carbon footprint and get exercise. Worst case scenario, you can always call an Uber to rescue you.
Another consideration when making a transportation strategy to help you save money is parking. Parking your car can cost you hundreds of dollars a month. Using a bicycle removes that concern.
With advancements in technology, it’s harder than ever to be a backyard mechanic. It’s important to remember that the more expensive the car, the more expensive the maintenance will be. Try to buy a car that has affordable parts.
Learning the basics of car maintenance is worth the cost reduction in maintenance. Learn how to change your own oil, replace belts, etc. Look at the local business options for mechanics and compare costs before going for service.
If you take the time to learn how to do your own maintenance, you’ll learn a lot about your car. This will help you identify if there are cheaper alternative parts that will work on your vehicle.
Reduce Transportation Costs by Being a Better Driver
With rising fuel costs, it’s important to understand how your driving impacts your fuel efficiency. Speeding and making stupid decisions will ultimately cost you more in fuel, insurance, and liabilities.
Buy the Car You Need
Buy a car that makes sense for your needs. If you have a big family, you can justify having a bigger vehicle. You’ll save money on fuel by downsizing. There are always solutions to transportation problems; you just need to think outside the box.
There are always cars for sale. Look for deals from rental agencies selling off their fleet inventory to see what sort of deal you can get. Wait for inventory management deals from local dealerships to purchase a vehicle if you can wait. Weigh the options of buying second hand vs. buying new. There are lots of ways to reduce the cost of a vehicle.
There are a lot of hidden costs when buying new. You’ll pay for freight, customer service, etc. Ultimately, everything that is going to cover the car salesperson’s salary.
Leasing a Car
Leasing a car often looks like a great option, but often costs you more in depreciation and interest. You’re responsible for maintenance, have car payments always, and have limited mileage each month.
Frugal Tip of the Day
See if you can flex your hours to avoid rush hour, thus reducing transportation costs and avoiding burning fuel while sitting in traffic.
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Disclaimer: Kevin and Sean are not professional financial advisors. Do not take any advice they give without first speaking with a professional and performing your own due diligence.