Going car-free can make you a millionaire!
You’re paying more for your car than you think. A typical American who goes car-free for 35 years can save over a million dollars, even adjusted for inflation, and even if they pay for taxi, bus, and car-share trips often. Use the calculator to find how much you can save in your particular situation. Yes, not everyone can go car-free, but more can do it than would care to admit. And isn’t a million dollars a pretty good incentive? If work is too far away, then consider living closer to your work. And if housing costs more closer to where you work, does it cost more than the million dollars you could save by ditching your car? (ULI has a calculator that shows the combined costs of transportation and housing for a few U.S. cities). Oh, and big thanks for the plugs from Get Rich Slowly and 20 Something Finance, which are well worth your time.
Notes: The results are already adjusted for inflation! You’re seeing your savings in current dollars. You’ll owe taxes on your bounty though, just like if you’d won the lottery. To account for taxes just enter your after-tax return in the Interest field. Most default values for driving are from the AAA’s Your Driving Costs, 2011 edition. For simplicity, calc. assumes that car is replaced as soon as it’s paid off; if not, enter a lower number for interest+depreciation. Gas costs are from the average residential miles driven & mpg and the average cost of gas (6/11). The return on investment is the actual annualized return of the U.S. stock market, adjusted for inflation.