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Ways to Reduce Your Transportation Costs
The American Automobile Association (AAA) calculates that owning even a small size car will run you more than $6,000 a year after you add up the gas, insurance, maintenance, and other associated costs. Here are some ways to save on getting around:
- Get out the bicycle or go on two feet. One eco-friendly way to save money is to leave the gas guzzler in the garage and hop on your two-wheeler (or your own two feet). Biking and walking are good for your wallet, your health, the planet… the list goes on.
- Use public transportation. Public transportation saves you money on gas, parking, car maintenance, and more. Every weekday across the United States, people hop on public transportation 35 million times. Join them!
- Carpool. Recruit some coworkers and try carpooling. If you drive the average commute (16 miles one way), splitting the cost of gas with even one additional passenger can save you up to $600 per year.
- Rent or car share. If you need a car to get around but won't drive it every day, consider renting or signing up for a car share network. You'll still have access to a vehicle but you'll pay only when you need it. And you'll avoid maintenance and repair costs.
- Limit your financing. The more financing you need, the more interest you'll pay. And since a car is not an investment that appreciates in value, you never want to pay more than it's worth.
- Compare insurance costs. Prices vary, so shop around. Some insurance companies offer discounted rates if you have a good credit rating, if you're a safe driver, if your mileage is low, and more… be sure to ask.
- Don't speed. Speeding decreases the fuel economy of your car, meaning you'll get fewer miles to the gallon than if you slowed down 10 miles per hour. Keep money in your pocket and drive within the speed limit.
- Take care of your car. Keeping your tires full of air, getting regular oil checks, and other basic car maintenance helps your car run more efficiently and, therefore, more affordably. Plus, a well-maintained vehicle has a better resale value.
- Skip the carwash. By the time you leave a carwash, you may have drained your bank account by more than $20. Wash your car by hand two or three times a month, and you'll have saved more than enough to buy a full tank of gas!
Helpful Tips
- Pay yourself first by putting a portion of your paycheck directly into the bank. This is the most effective way to save money. If you never see the money, you won't miss it.
- Your emergency fund should consist of at least 3–6 months of living expenses.