I have yet to meet a single person who loves their lengthy commute. Or the dollars that drain from their bank account from all the associated commuting costs. “Booooooo,” we all say in unison. 👎
According to AAA’s 2023 driving cost report, your ownership costs per mile could range from around $0.69-1.05 cents per mile. And with the average commuter driving about 12 miles each way to work, those expenses can really add up!
Just because you need to get in and out of the office, it doesn’t mean that you can’t fight to reclaim some of those costly commuting dollars. Here are some of our best tips for saving on commuting costs…
1. Improve your gas mileage
The first step to reducing your commuting costs (with minimal disruption to your routine) is to get better gas mileage from your vehicle.
It might seem like a tiny amount of savings. But the more you drive, the greater the impact these smaller changes will produce.
You don’t even need to change your vehicle… The way you drive can greatly impact the gas mileage you get.
When you drive, don’t speed. Stepping on the gas reduces fuel efficiency and increases your likelihood of getting a pricey ticket. Not only are speeding tickets expensive, but they also lead to higher insurance costs, which is a surefire way of increasing your overall transportation costs.
If you have any flexibility with your work hours, try to adjust them to avoid rush hour traffic. Idling can also hurt your car’s fuel efficiency. Plus, you’ll save time by avoiding clogged roadways.
Lastly, make sure that you always perform routine maintenance on your car and keep your tires properly inflated. This reduces drag, making your ride more efficient.
And remember, you don’t have to swap out your car to save. But if you have the option to switch to a more fuel-efficient ride, this can make a meaningful difference over time.
If your family owns multiple vehicles, try to use the car with better mileage more often. And, if a new (used) car is in your future, consider the most fuel-efficient models. Doing so can save you some serious cash on the front end and in the coming years.
In fact, a car that gets 30 miles per gallon can save you around $918 per year in fuel costs when compared to a car that gets just 20 miles per gallon.
2. Work remotely or hybrid
Working a remote or hybrid schedule can save you money in many areas of life. But cutting car costs is probably the most financially rewarding.
When you factor in fuel costs, maintenance, insurance, the need to own a second vehicle, and opportunity costs, you could save between $5,000-$12,000 a year by taking the plunge into remote work.
If you can’t work remotely full-time, that’s OK. Even staying home just 1 day a week can cut your commute costs by 20%!
Ask your employer if they would support a hybrid work schedule. Or maybe look for other jobs in your field that have remote positions available if this seems like an appealing solution for you.
3. Carpool to work
What’s better than a soul-crushing, traffic-ridden, hour-long commute? A soul-crushing, traffic-ridden hour-long commute with a friend! 🤓
Carpooling essentially splits the commuting costs of gas, car maintenance, and parking with friends, family or coworkers. Beyond that, it can help to lower emissions and congestion, and allow you to take advantage of those often quicker HOV lanes!
Best of all, carpooling with someone whose company you enjoy can help to reduce the stress of your daily commute. A few laughs and fun conversations help pass the time and can deepen your relationship with the person you commute with.
4. Stipends, reimbursements & tax credits, oh my!
Some employers and local governments offer reimbursements or stipends to help cover the cost of driving, parking, or taking public transportation to work.
This can help to prevent the burden of transportation costs from falling solely on employees. Be sure to take advantage of these important employee benefits if they are offered to you.
Some companies even have programs that allow you to put pre-tax dollars toward your commuting costs!
For example, I had a friend who used to commute in and out of Manhattan from the suburbs. His company had a program that allowed him to buy his train pass using pre-tax dollars!
Talk to your employer and ask them about what transportation perks they offer. If they don’t have any in place, consider asking them to work it into your contract the next time you negotiate a pay raise!
5. Use public transportation
Bus, train, subway, or ferry… Using public transportation can significantly reduce the costs of commuting.
That’s why these services exist. To provide cheap transportation to locals.
The American Public Transportation Association found that commuters can save over $13,000 each year by using public transportation to get to and from work. That is meaningful money!!!
If you have access to good public transportation options in your town or city, take advantage of it. Plus, when you aren’t driving you’re free to do much more on your commute. You can read, watch TV episodes, play video games, or even get some work done for your side hustle!
6. Walk or Bike to Work
Ah, the humble bicycle.
It helps you exercise and stay in shape, get outside more, and feel more connected to your community. But, biking has one more secret superpower… It can allow you to save boatloads of money.
Biking (or walking) to work can help you slash your transportation costs. While a car will cost you around $9,282 annually, you can grab a decent bike for just a few hundred dollars, or walk for free!
We’ve even broken down how these savings can compound if you invested them over 30 years. It equates to having over an extra million dollars come retirement. Makes you think again instead of shrugging your shoulders at the biking suggestion, right!?
Plus, biking and walking aren’t just great for your wallet. They’re great for your health too, potentially saving you even more in the future on healthcare costs.
Of course, biking isn’t for everyone. If you have a 60-mile commute chances are this advice won’t make a whole lot of sense for you.
But, if you live a medium distance from your job, don’t be discouraged. You can pick up a fancy e-bike or electric scooter to make a car-free commute more feasible for you!
7. Move closer to work
Sometimes when we’re on a money-saving journey, we focus on the pursuit of small daily savings.
But the biggest savings tend to come from making a big change in our lives.
Yes, moving houses is very disruptive. And in many cases more disruptive than changing jobs. But moving closer to work can equate to a huge amount of time and money saved over the long run.
Housing can be more expensive in metropolitan areas because of its proximity to where the majority of jobs are found. However, when you factor in the lower commuting costs, you might just be able to break even, or even put meaningful money back in your pocket.
But in addition to that, you’ll be getting hours of time back each and every week. For example, if you cut your hour-long commute down to just a 15-minute commute, you’ll be saving 7 ½ hours every single week!
8. Save on insurance
Nothing makes my heart sadder than seeing someone just passively accept their fate of paying inflated car insurance costs their entire life. 😪
If you haven’t done so already, shopping around your insurance is one of the best ways to lower your transportation costs. In fact, you should realistically be doing this every year or two to make sure that you’re getting the best rates.
Insurance companies never reward you for your loyalty. They hope you’ll be like the frog in the pot of water, slowly getting accustomed to the rising temperatures. Instead, they slowly raise your rates over time, hoping that you’ll be too busy or lazy to shop around or switch providers.
By shopping around with regularity, you can continue to take advantage of introductory rates and keep those insurance costs in check.
Pro tip– some companies will give you a discount on your insurance if you take an online safe driving course. While these often cost around $40-50, the savings can easily pay for the course and then some!
The Bottom Line:
With monthly expenses increasing and more folks returning to the office, there’s never been a better time to evaluate your commuting costs and look for ways to reduce them. By driving a fuel-efficient vehicle when possible, negotiating insurance costs, and walking or driving whenever possible, you can save money on your commute and put those newfound dollars towards investing efforts instead.
Savings in the neighborhood of $5,000 – $10,000 a year isn’t out of the question if you can rethink your transportation needs. And by investing those dollars, your overall savings will compound meaningfully every year going forward.
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