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Five Ways to Cut Your Commuting Costs

Ever wonder how much money you can save by cutting your commuting costs? How about enough to pay for two trips to Ireland plus several major home improvements?

As chief of marketing for the Maryland Transit Administration, Buddy Alves set out to see how much money he and his wife could save on their commute from the Baltimore suburbs to their downtown offices. The couple started taking the light rail instead of driving separate cars and investing the cost difference in mutual funds. Not only did the Alveses save on gas and parking costs, but they also needed less car maintenance, saved on their auto insurance and got transit pass discounts from their employers.

After 10 years, the results were astounding: The Alveses had enough money to cover two trips to Ireland, pay for a $3,000 fence, spend $2,000 to repave their driveway and splurge about $4,000 to refurnish their living room.

AAA estimates that when you add in all the costs of commuting, including car depreciation, maintenance, tires, insurance and fuel, the cost rises to 55 cents per mile, so lowering your commuting costs can be a great way to put extra money in your pocket. Try these tips.

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