Reduce Transportation Costs - the goal

Our focus should be to reduce transportation costs. If we do it with more miles per gallon, then fine, but we can also do it by owning a gas hog that we rarely drive.

What difference does it make if you have a 15 mpg car if you only drive it 2,000 miles per year and the rest of the time you use alternative transportation?

Here is the idea in a nutshell. Add up your total cost of transportation for a year and see if there are ways for you to get it for less money.

I have heard of a woman in the City of New York who has very low transportation costs. She uses her car for grocery shopping about once a month and an occasional trip within the state to see her family.

Other than that, she walks or uses alternative transportation.

She knows how to reduce transportation costs by saving gas as well as taking advantage of alternative transportation. Her cost of transportation is very low, and she is perfectly happy with that.

The importance of focusing on lowering our total transportation costs will become abundantly clear as we approach a time when gas prices are so high that we seriously start to think about other ways to get around. I believe the time to think about other ways to get around is right now.

Let me show you how to reduce transportation costs by owning a good used car instead of a fuel efficient new car. Here is a page from my play book - a story of a cheap used car that I used to own.

I practice what I preach. I practice most of the techniques that I suggest you use to save gas, and in two years I have reduced my local annual fuel consumption from about 800 gallons to 150 gallons. That should be evidence enough of how well my suggestions can help you save gas and reduce transportation costs.

Want more evidence that these techniques work? Take a look at the better gas mileage I am able to squeeze out of my 2001 Saturn SC2 when compared with EPA testing data. As they say, the proof is in the pudding.

EPA Test Data from My experience:

22 mpg city

28 mpg city

32 mpg highway

38 mpg highway

If we average out the fuel economy for both sets of data, that works out to 27 mpg for the EPA, and 33 mpg for me. The EPA uses 15,000 miles as an average distance driven per year. So, at $3.41 per gallon of gas (mid 2008 prices), the EPA figures suggest that I should be paying about $1,888 at the pump. Instead I pay $1,550 at the pump.

Actually, I pay only $1,322 at my pump because the price of gas at my pump was only $2.91 per gallon for 2008. That’s a savings of over $550 a year. How do I pay 50 cents to $1 less per gallon of gas? I buy it for less. I buy in bulk and that's how I save on gas.

You can too. It is all part of my suggestions for how to save gas, save money on gas, and reduce transportation costs.

Like they say on the info-mercials, “but wait, there’s more”. And its good news too. Since I drive less than half as much as the average person, my cost is less than $661 a year, for a savings of more than $1,220 over EPA estimates. How's that for frugal living?

If you are curious about some of the processes involved in using and saving fuel, then let me help you understand the basics of how fuel is consumed in a vehicle. Use it wisely and you’ll save gas and save money. Use it unwisely and you are wasting money. If you understand the basics of fuel efficiency, then you can better appreciate how to save money on gas.

Done with Reduce Transportation Costs, take me back to Save Gas

There certainly is a broad scope of topics here at Frugal Living Freedom. When you think about it, money permeates so very many activities in our lives, therefore, being frugal encompasses a wide range of interests, from being employed to taking a vacation, and just about everything in between. Enjoy the variety, pick up some new ideas, and start making frugality a part of your signature.

I'm a big proponent of being debt-free, and I mean entirely debt-free - no mortgage payment. It's not essential for financial freedom, but you'll love the feeling once you get there. If you didn't have a rent or mortgage payment, how much more could you do for yourself with your current level of income? I suspect plenty.

If you ever hope to see an abundance of wealth, you need to plug the hole in your boat. The wealthy don't necessarily make lots of money, instead, they know how to hang onto what they make, and make it work for them.