Transportation Cost - more important than MPGWhen we think of transportation cost, many of us immediate talk about the number of miles per gallon we get with our vehicle. It's a trap that we should all avoid. Don't get caught up in how many miles per gallon your car is capable of. Instead, focus on what you are paying for transportation on an annual basis. Do the math and you'll find that calculating your cost of transportation is one of the great ways to see how much money you're saving or wasting in your quest to get yourself from one place to another. Instead of a nice new hybrid vehicle that get amazing fuel economy, consider an old beater vehicle with no monthly payments, liability insurance only, and cheap licensing fees. If you don't drive much or you don't drive very far, the old beater might cost you less to operate all year long (fuel included) than just 3 or 4 car payments on that hybrid. Consider why you're buying a highly fuel efficient car. Is it for higher fuel economy, lower operating costs or lower costs associated with getting you where you want to go? The bottom line is the amount of money you spend each year on transportation, so an old not-so-efficient car that is paid for might be the right financial answer, especially if you aren't putting on tens of thousands of miles each year. I've implemented this and other money saving ideas for my personal transportation and they have saved me many thousands of dollars. Focus on the cost of transportation first and foremost, and you'll make better decisions about transportation that will favor your personal financial goals. Done with Transportation Cost, take me back to Money Saving Ideas |
