Time to read : 3 Minutes
How To Save Money On Transport
When I joined Compare Club to write about mortgages, savings and all things financial it was a bit of a wake-up call.
I mean, how can I write about all of this without taking it onboard and putting it into practice? After all I can't really ask you to be better with your money if I'm not asking the same of myself.
Mission #6 – spend less on transport
The Australian Automobile Association's latest report shows just how expensive getting around is.
🫰🏻The average Aussie city family is spending $19K a year just to get from A to B – that's over 14% of the average household budget.
⛽ Our rising fuel costs have really impacted how much we are spending, increasing 25-30 cents a litre in the last eight weeks alone.
👀 Running a car works out to about $360 and change each week.
So how much do I spend on transportation a month?
A fair bit more than I would probably like to, is the answer.
🚘 Here are the sums...
$500 car loan
$100 car repairs and service (I allow $1.2K a year)
$100 on Opal using public transport
$100 fuel (I really don't drive very much – once a week, maybe)
$80 NRMA comprehensive car insurance
$37.50 NRMA green slip ($450 a year)
$35 NSW registration ($400 a year)
$20 parking
Total: $972 a month or let's just say $970
I'll be honest, that is a lot more than I was expecting
In hindsight, I shouldn't have really upgraded my car last year, I should have just gone carless. And, too attached to the convenience of having a car, I have learned a hard and expensive lesson.
✂️ So, after looking at the numbers today, I have decided to sell my car.
💪 I've been very lucky because the car market, and in particular the secondhand car market, is doing really well right now. This is because COVID has left a huge car gap, with buyers waiting up to 146 days for a new vehicle. As a side effect, used cars are now selling up to 45% more than they would prior to COVID.
🚀 This means, that I'll be able to sell my car for what I bought it for a year ago. And yes, I could charge much more than that, but I want a quick and easy sale.
My transport lessons...
Do an audit. It will literally take you an hour and then you can see clearly if and where you can cut. Even if it is just to change your car insurer, every cent makes a big difference to your bottom line.
I live in the city. So this means I can essentially catch a bus, train, ride my bike or walk just about everywhere I go. This may not suit a family at all who has to get to soccer games and school, but for me it is a cost that I don't need to have. And if you're living regionally where public transport is non-existent (like my cousins), then yes you are likely going to need a car 100%.
Share car and Uber. I realised that I was holding onto my car because I was lazy and liked that I could just take my car out when I needed it. This was costing me too much money. When I did a search for share cars in my area, there were 15 all within 10 minutes' walking distance.
Fuel is so expensive. The cost of running your car isn't going down, it's only going up and I was driving to places that are a 10-15 minute walk away. So I won't only be saving money, I'll also be increasing my steps.
Electric is coming. The other worry in the back of my head with my car is that it's a fuel car and in the next 10 years we will be moving across to electric ones. I don't want to have to deal with that saga when it comes – see above, I am lazy.
Planet first. I also feel guilty about having a car that I hardly ever use and I am fully aware that fuel cars are terrible for the planet. In Australia alone car 20 million cars produce 18% of our emissions.
The package cost. I think the thing that really sealed my no car future was that there are so many costs that come with a car – the rego, insurance, upkeep and finding a car park (I don't have one with my place), all adds up to a lot. Which for me means working harder and longer. Not having one takes a lot of pressure off my budget and therefore, off of me.
Fitness. I have been so much more sedentary since COVID and working again as an editor, that any opportunity to make myself move is good. I think that not having a car is going to be very good for my health.
It is scary. Everyone in my family is attached to their car, and we all get really sad when we have to upgrade and sell them, or in my case downgrade to my feet... but that attachment has been terrible for my budget.
Home delivery. The other upside that is going to help me go car-free is that you can get just about everything delivered now in metro areas. Which means I am supporting the economy and still getting those bigger items home – talking to you, eucalyptus mulch!
How much did I save?
In two words: A lot.
It's made me realise that I have been too attached to my car, like most of us.
🫶 The no car transport budget
$200 on share cars or uber
$100 on Opal using public transport
Total: $300
Saving: $670 a month or a huge $8040 a year.
Having a car is a really personal choice
But for me, after doing my sums and contemplating what to do – um, literally for the last six months – it was better not to have one.
Here are my tips:
🗓️ Try a month without your car to see if you can handle the uber, getting your groceries, and your work commute without it.
✅ Don't worry about what I have decided, having a car might be exactly what you need – so definitely do what suits your life.
👌 And if you're going to sell your car, now is possibly the best time ever to do it.
💰Week #6
Savings: $1400/$25K goal (didn't get ahead this week because I had an $800 vet bill to pay for my buddy Hugo who needed surgery on his foot, but also didn't go backwards.) Travel savings: $300/$5.2K goal
🏠 Next week... I tackle my housing costs, and as I have fixed a mortgage (for now) looking at renting out my spare room.
