Is Getting Rid Of Your Car Really The Best Way To Cut Back On Your Finances?

Cutting back on your expenses is a way to improve your personal finances, but you should consider other factors, such as spending alternatives and the impact on your lifestyle.

When is a cutback on spending too much?

That’s what we’ll discuss here.

As a way out of debt, it seems that giving up your car might be an option. You’ll no longer need to make a car payment (whether you purchase or lease), and you won’t be paying for gas, car insurance, or vehicle maintenance.

Driving an old car- we’ve all been here.

If your car guzzles gas like Henry VIII at an all-you-can-eat buffet, it probably makes sense to find other transportation. That’s also the case if the cost of maintenance has become too expense.

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While it certainly benefits your carbon footprint, are you better off without your car?

How Will You Get Around?

The availability of public transportation can vary greatly, depending on where you live.

Cities like New York and Chicago are set up for people without cars, given the subway, railway, and bus systems. Other cities, however, may only have a bus system- and government cutbacks have reduced the number of bus lines. St. Louis, where I live, has seen a sharp decline in bus routes over the past 20 years.

Not to mention the luxury of having to commute in your own car, rather than being so close to others on a bus or train, that you can smell what they’ve had for breakfast.

It depends on the amount of miles you have to cover. But make no mistake, if you spend the money to maintain an older- but reliable- car, it may be cheaper than public transport.

Do your homework before you make a decision.

Are Your Other Options Safe?

A growing number of commuters are cycling to work, but there are risks to riding a bike. Next time you pull up to a four-way stop in a car, take a look at the number of people in other cards who are on their cell phone. People using their cell phones while driving create huge risks for cyclist.

Law firms like Rizk Law can help cyclists who are injured while riding. Cities are adding bike lanes and bike-only trails for riders, but some risks remain.

There’s no arguing that it’s a lot cheaper than public transport or driving your car, but what you have to consider is the time lost on a bike. If love being outside and thrive on the exercise, biking may be for you.

Time and Lifestyle

Proximity to your regular destinations is one of the defining factors in whether you should get rid of your car or not, but your lifestyle will determine the necessity of a car.

When you’re at retirement age, you will naturally have a lot more time on your hands. As a result, there is no need to rush. Ultimately, getting rid of your car could be the best thing to happen to you financially, or it could make life a lot more difficult.

Give It a Try

Finding that balance is very difficult, but if you’re spending through the nose on a car, it’s time to think about more cost-effective methods. Whether this means getting a new car, or a cheaper one, or alternating car journeys with public transport, these are all options to cut back on your expenses.

Experiment. Give different transportation option a try, and see how it goes. Making the effort to change you spending habits can really pay off.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Maciej Lewandowski, Vintage Cars, (CC By SA-2.0)