The True Cost of Commuting

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therub
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The True Cost of Commuting

Post by therub »

I've valued commute time in my "top 3" priorities for a job ever since suffering through a 45-minute commute during an 8 month internship (an eternity, I know).

However, I've never broken it down to this level of detail, or seen it presented this persuasively.
You’ll note that most 30-year-old couples today, about 10 years into adulthood, don’t even have $125,000 in net worth. And they probably drive around quite a bit in expensive financed cars, mostly as part of a self-imposed commute. These facts are directly related!
So each mile you live from work steals $795 per year from you in commuting costs.
http://www.mrmoneymustache.com/2011/10/ ... commuting/
2wolves
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Re: The True Cost of Commuting

Post by 2wolves »

therub wrote: However, I've never broken it down to this level of detail, or seen it presented this persuasively.
His argument falls apart when he includes the average wage in the costs. Most people would not end up spending all of their saved commute time working. And even if they did, most at that wage are salaried and wouldn't get much money from it anyway.
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tetractys
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Post by tetractys »

Nevertheless, commute time, car cost, fuel cost, etc., are nothing to sneeze at. The simple equation is: the less you spend, in time or otherwise, the more you have for other pursuits. A little bit here and there can really add up over time. -- Tet
harrychan
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Post by harrychan »

My job went from full time in the office to one day a week telecommute, 3 days a week telecommute, and now a home office. I don't know how I can commute more than 15 min in my next job. Working from home has saved me from a lot of stress, gained more time with family, errands, and increased my work hours and productivity.

I'm in Los Angeles.
This is not legal or certified financial advice but you know that already.
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Opponent Process
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Post by Opponent Process »

tetractys wrote:The simple equation is: the less you spend, in time or otherwise, the more you have for other pursuits.
yes this underlies a lot of my road rage. fortunately my daily work commute is about 97% interstate highway, and on the I-5 I'm probably precipitating road rage in others as I only drive about 65 (I do stay in the slow lane to be courteous).
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Callalily
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Post by Callalily »

Very interesting topic.

Sometimes, a commute is a feature of a two-income family. I've just moved from MN to PA. In MN, both my husband and I had a 45-75 minute commute in opposite directions. Fortunately, mine was an academic position, so I went in 3-4x a week and not during vacations.

Now, in PA, I live 20-minute WALK from campus, and I LOVE it! Hubby is still unemployed though, so that may change once he finds a permanent job.
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White Coat Investor
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Re: The True Cost of Commuting

Post by White Coat Investor »

therub wrote:I've valued commute time in my "top 3" priorities for a job ever since suffering through a 45-minute commute during an 8 month internship (an eternity, I know).

However, I've never broken it down to this level of detail, or seen it presented this persuasively.
You’ll note that most 30-year-old couples today, about 10 years into adulthood, don’t even have $125,000 in net worth. And they probably drive around quite a bit in expensive financed cars, mostly as part of a self-imposed commute. These facts are directly related!
So each mile you live from work steals $795 per year from you in commuting costs.
http://www.mrmoneymustache.com/2011/10/ ... commuting/
Didn't adjust for tax. Plus I'm not sure I buy the assumption that commute time comes out of work time and that leisure time is just as valuable as work time.

But I do agree a short commute contributes to happiness. My last two jobs were 1/2 mile and 1 mile from work. My current one is 8, but on surface streets so 15-25 minutes. Not too bad and worth it to live where I want to live.
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Post by bmelikia »

Fortunately my company provides my work truck which is able to be used as both a work and personal vehicle. They also pay for insurance and gas (for both personal and work reasons). While I do put in long hours. . .typical for agriculture. . .I am thankful for this perk. Its nice not having a "Transportation" section in my budget. Plus I get free lunch everyday which adds up in savings as well. . .
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epilnk
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Re: The True Cost of Commuting

Post by epilnk »

EmergDoc wrote:
therub wrote:I've valued commute time in my "top 3" priorities for a job ever since suffering through a 45-minute commute during an 8 month internship (an eternity, I know).

However, I've never broken it down to this level of detail, or seen it presented this persuasively.
You’ll note that most 30-year-old couples today, about 10 years into adulthood, don’t even have $125,000 in net worth. And they probably drive around quite a bit in expensive financed cars, mostly as part of a self-imposed commute. These facts are directly related!
So each mile you live from work steals $795 per year from you in commuting costs.
http://www.mrmoneymustache.com/2011/10/ ... commuting/
Didn't adjust for tax. Plus I'm not sure I buy the assumption that commute time comes out of work time and that leisure time is just as valuable as work time.

But I do agree a short commute contributes to happiness. My last two jobs were 1/2 mile and 1 mile from work. My current one is 8, but on surface streets so 15-25 minutes. Not too bad and worth it to live where I want to live.
I agree. We prioritize the commute ourselves, currently living within walking distance of my husband's work. But those calculations seem silly to me; no way we'd be that much poorer if he drove. The benefit of lower stress and more family time is valuable, but not so much in a dollars and cents sort of way.
StretchArmstrong
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Post by StretchArmstrong »

I moved farther away from work. I used to live a few blocks away, and it consumed my life, I couldn't escape. Plus I didn't like the city- I told people it was where you go to die (i.e. where you move when you turn 30, get married, have kids, buy a minivan, and mow your over fertilized lawn every weekend). I moved to a different city and it added significantly to my commuting time, but I can take a street tram and spend the entire time reading. I'd say it was worth it.
brogrammer
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Post by brogrammer »

A few years ago I switched from a job that was four blocks from my house to one that is a 20-25 minute drive away. I find I like it better; the relatively low-stress drive helps me to "get into" work-mode and more importantly "get out" of it on my way home.

I do feel it in my gasoline spending and increased eating out vs. going home for lunch (which is no longer an option.) But I do derive some utility from work being physically more distant.
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Post by Curlyq »

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deerhunter
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Re: The True Cost of Commuting

Post by deerhunter »

As a self employed person with a service business, I take my travel off my taxes. The IRS allows 50 to 55 cents a mile if you wish to take the mileage cost for your business expenses. Years ago it was 10 to 20 cents a mile. I drive a thousand miles a week during my busy time or $500 to $550 a week off my taxes. That is a lot of money I don't have to pay taxes on and shows how damaging to the economy and to Federal tax collections high fuel costs are.
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linuxizer
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Re:

Post by linuxizer »

StretchArmstrong wrote:I didn't like the city [...] buy a minivan [...] over fertilized lawn every weekend)
That's a funny definition of a city ya got there!
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modal
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Re: The True Cost of Commuting

Post by modal »

I moved and cut my one way commute time of 25-35 minutes by 80% to 5-7 minutes.

Benefits
-Less Stress
-More Time
-Less Road Time

I don't see how people deal with 45+ minute commute times. 4-5hr to work and 4-5hr back home commute once a week are crazy too (Some people at my work do this). Worst bi-weekly commute of a fellow co-worker is a 2-3 hr drive plus a 4-5hr flight (not inclusive of security/checkin/customs/bag pickup/car pickup).
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Hawkeye5
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Re: The True Cost of Commuting

Post by Hawkeye5 »

I quit driving and started taking the bus a bit over four years ago after my wife had to leave her job due to health issues. Because of my employment, there is no financial cost for taking the bus.
With reduced mileage comes operational cost benefits, less frequent oil changes, tire replacement, less wear & tear.
Also reduced insurance premiums as I drive only six miles rather than twenty two.
Non-financial benefits are mostly stress reduction and enjoyment of fellow riders.
I had calculated savings around $3500 per year when gas was well below three dollars per gallon, more now, plus I'm now driving an '02 Honda Accord 4 cylinder (30 MPG) rather than my '99 8 cylinder truck (14 MPG).
The trade off is I now am bound by the bus schedule, a trade off I'm willing to make.
I still have the option to commute if I have an appointment or feel the need to be available depending upon my wife's current situation.
bungalow10
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Re: The True Cost of Commuting

Post by bungalow10 »

This is interesting. I live 27 miles from work, it's about a 35 minute trip each way (mostly scenic highway), 50 if you count the daycare drop-off/pickup.

DH and I have debated moving. Afterall - that is a lot of time I could use for other things - cleaning, cooking, playing with kids, etc. DH's job is construction, so his commute varies by job.

However, housing costs are cheaper where we are - and having an affordable mortgage during my husband's 3-year stint of partial employment saved me so much stress. We drive inexpensive cars with no desire for expensive ones. We have a huge lot in a developed neighborhood (100 year old house), nice neighbors, good schools, kids have safe places to play and lots of room to explore and run.

Next year I will have my oldest in 4k and be switching daycares and I can start working from home! In about five-six years we should have our house paid off (while kids are still in elementary school!)

I don't mind my commute most days, I listen to podcasts, talk to the kids, get my thoughts in order for the day. Other days I abhor it, but those are rare, and usually when something else is stressing me out. My commute home helps me decompress from my day at work and get into "mom mode".

Commutes are not great, but they have to be balanced with other concerns in your life.
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goggles
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Re: The True Cost of Commuting

Post by goggles »

It may not just be expensive to commute. If Repo Man is right, the more you drive the less intelligent you are!
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Re:

Post by yobria »

harrychan wrote:My job went from full time in the office to one day a week telecommute, 3 days a week telecommute, and now a home office. I don't know how I can commute more than 15 min in my next job.
If you're doing a job that can be performed anywhere in the world (and thus outsourced to someone making 20% of what you do), that next job may be coming sooner than you think...

Nick
arthurb999
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Re: The True Cost of Commuting

Post by arthurb999 »

I commute 20 min and listen to a manager-tools.com podcasts on the way... professional development :D
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indexfundfan
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Re: The True Cost of Commuting

Post by indexfundfan »

I pay for a vehicle that gets me into the HOV lane. This cuts my commute time by about 40%. To me that is money well spent. I can't bring money into the grave with me.
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harrychan
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Re: Re:

Post by harrychan »

yobria wrote:
harrychan wrote:My job went from full time in the office to one day a week telecommute, 3 days a week telecommute, and now a home office. I don't know how I can commute more than 15 min in my next job.
If you're doing a job that can be performed anywhere in the world (and thus outsourced to someone making 20% of what you do), that next job may be coming sooner than you think...

Nick
We already outsource and they make 1/4 of what US based employees make. With that said, I was able to save a lot of US based employees job by outsourcing. Instead of reducing our existing heads, we outsourced to account for the work increase.
This is not legal or certified financial advice but you know that already.
RedJones
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Re: The True Cost of Commuting

Post by RedJones »

I never commuted, but there were many in my various jobs who had long commutes. It seemed to me the cost was in their health since they usually didn't have enough time left to exercise.
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Re: The True Cost of Commuting

Post by TheEternalVortex »

Yet another reason to work from home.
scrabbler1
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Re: The True Cost of Commuting

Post by scrabbler1 »

Besides the monetary costs of commuting, for me it was the intangible costs such as wear and tear on my body and the stress of commuting which I found the worst. It was the top reason for my retiring 3 years ago at age 45 after 16 years of full-time work and 7 years of part-time work, some of which included mostly working from home.
NAD83
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Re: The True Cost of Commuting

Post by NAD83 »

I bike to work. Not only does it save money, it makes me healthy and less stressed. I feel that the commute is often overlooked by people when making work/home decisions. It is worth a lot to me to not have a bikeable commute, so when and if I move or switch jobs, this will be a large factor in the decision. Day care, doctors, banks, grocery, pretty much everything is blocks from my house. Worth A LOT IMO.
Rick_29T9W
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Re: The True Cost of Commuting

Post by Rick_29T9W »

I walk the 50 feet to and from work every day. I spend less than a minute per day walking to and from work. I use very little gasoline and it takes me over 20 years to get enough miles on a car or truck to wear one out. My 19 year old truck has 157,000 miles and still runs reliably and looks good.

The nearest grocery store, banks, doctors, Wallmart, and the mall are all only about a 3 mile drive away.
deerhunter
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Re: The True Cost of Commuting

Post by deerhunter »

As self employed businessman in a service business, I am allowed to take my driving off my taxes. For the past several years the IRS has allowed me 50 to 55 cents per mile off my taxes. I also could use actual costs, gasoline, service costs, insurance and car depreciation if i chose to. When I was working full time I often drove 50,000 miles a year just to get to the job site.

I have been in business for 0ver 40 years and once the IRS allowance was 10 cents a mile, of course rising as gasoline, car and insurance costs have rose to the present rate.

So if you commute, you can figure the the costs of driving to work are about 50 cents a mile. That doesn't take in your time lost etc.
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zaboomafoozarg
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Re: The True Cost of Commuting

Post by zaboomafoozarg »

I'd rather live in the country, 20 minutes from anything, than live near a town or city where I could get to work faster.
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Re: The True Cost of Commuting

Post by lws6772 »

NAD83 wrote:I bike to work. Not only does it save money, it makes me healthy and less stressed. I feel that the commute is often overlooked by people when making work/home decisions. It is worth a lot to me to not have a bikeable commute, so when and if I move or switch jobs, this will be a large factor in the decision. Day care, doctors, banks, grocery, pretty much everything is blocks from my house. Worth A LOT IMO.
Biking to work is truly great, great for the biker and great for the planet.
natureexplorer
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Re: The True Cost of Commuting

Post by natureexplorer »

I once moved to a place across street from work. It was not all that.
madbrain
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Re: The True Cost of Commuting

Post by madbrain »

therub,
therub wrote:
So each mile you live from work steals $795 per year from you in commuting costs.
http://www.mrmoneymustache.com/2011/10/ ... commuting/
I looked at the math in depth and I believe it is slightly suspect.

First, I take issue with the 5 cents/mile depreciation - the expectation that one can buy a used car for $5k and drive it for 100,000 miles without any major repair. It may happen on occasion if you are very lucky, but on average, I think that's very unrealistic. Most cars that sell for $5k will be sufficiently old to need major maintenance at some point before the new owner gets to drive another 100,000 miles. I know many people who have bought other used cars with far higher repair costs, often adding up to much more than the purchase price after a few years. Which is why I would never buy a used car. So I think this cost is underestimated. It's likely to be far more. I think it's very disingenuous to discount major maintenance.

My Prius does 45 MPG average, not his 35MPG considered the "absolute best". With the assumed $3.50 gas price, that's 7.7 cents per mile rather than 10 cents/mile.
One may also add the hybrid battery replacement at $2200 for 100,000 miles or 2.2 cents per mile. Though part of that expense should probably be counted under major maintenance.
The Prius oil changes are every 7500 miles also, not every 5000. And I think they can be done for $20, not $25. So that's 0.26 cents per mile for oil changes rather 0.5 cent. I'm not really sure about 1 cent per 100 mile on regular maintenance. My Toyota prepaid maintenance contract for 100,000 miles costs less than 1 cent/per mile ($700 for 7 year/100,000 miles) and it includes oil changes. But there are a couple things it doesn't cover (wipers being one).

The time calculations are also wrong. 1 mile round trip, ie. 2 miles, does not take me 6 minutes on average. My 12 miles 1-way commute takes 20 minutes on average. So, 3.3 minutes per mile from home.
I used to live much closer to work - 4 miles. The 1-way commute took 13 minutes average, which is much closer to the value in the article - 6.5 minutes per mile from home.
I am also not paid hourly. My job is exempt. If I didn't currently commute 40 minutes per day, I would not be able to take a second job during those 40 minutes. There are no jobs that I know which pay for this short amount of time. Therefore, it's not really possible for me to assign a value to this commuting time.
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burt
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Re: The True Cost of Commuting

Post by burt »

I live and work in the city, and have a 15 minute commute on residential streets.
A few weeks ago, I had to take my wife to the airport before going into work. The work day just started and I was already burned out.
I'll live in the back of a gas station before doing a long commute.

burt
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