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Saved enough to buy a house.

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Saved enough to buy a house.

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Old 12-14-04, 10:31 PM
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slvoid
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Saved enough to buy a house.

Someone was telling me about how a coworker used to commute year round 25 miles a day through NYC to my job on his Binachi with a full dura ace groupset. He said he eventually saved up enough to buy a house by not taking the subway or buying a car.

So I went ahead and did the math. In NYC, auto insurance would cost him about $3000/yr. Plus the car's $20000. Then there's gas $20/week. Plus he saved about $50 a month on subway service. Since he'd been doing it for almost 20 years, say 18:

$3000 x 18 = 54000
$20 x 50 x 18 = 18000
$50 x 12 x 18 = 10800

Total saved over 18 years: $82800 without changing his life style any. That's a pretty good down payment on a house.
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Old 12-14-04, 10:55 PM
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Wow, and I've only been full time commuting for about 5 years now. 15 more years, and I'll have that house! Or I could just get married....

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Old 12-14-04, 11:09 PM
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Originally Posted by slvoid
Total saved over 18 years: $82800 without changing his life style any. That's a pretty good down payment on a house.
Now, had he taken that monthly savings and dumped it into the stock market say between 1990 thru the beginning of 2000, he would easily have had a half-a million dollar portfolio, guaranteed...... based on my fuzzy, off-the-top-of-my-head math.

George
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Old 12-15-04, 07:07 AM
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Not to take away from the man's success, but you can't really double bill for a car and the subway. Car free isn't an option for me, so my only savings are gas and repairs (due to less milage). Still, at today's gas prices that's not a trivial amount.
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Old 12-15-04, 07:34 AM
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Originally Posted by Hemlock
Car free isn't an option for me, so my only savings are gas and repairs (due to less milage).
If you bike instead of drive, half of your road miles, won't your car last twice as long? I think that you can add 50% of the cost of a car( spread out over several years) to your savings. If you drive a nice car, that could double the monetary benefit of cycling.
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Old 12-15-04, 08:15 AM
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Originally Posted by Hemlock
Not to take away from the man's success, but you can't really double bill for a car and the subway. Car free isn't an option for me, so my only savings are gas and repairs (due to less milage). Still, at today's gas prices that's not a trivial amount.
If you would have driven to a commuter rail and used a car around town for errands and such, you would not be double billing.
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Old 12-15-04, 07:53 PM
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Originally Posted by slvoid
Someone was telling me about how a coworker used to commute year round 25 miles a day through NYC to my job on his Binachi with a full dura ace groupset. He said he eventually saved up enough to buy a house by not taking the subway or buying a car.

So I went ahead and did the math. In NYC, auto insurance would cost him about $3000/yr. Plus the car's $20000. Then there's gas $20/week. Plus he saved about $50 a month on subway service. Since he'd been doing it for almost 20 years, say 18:

$3000 x 18 = 54000
$20 x 50 x 18 = 18000
$50 x 12 x 18 = 10800

Total saved over 18 years: $82800 without changing his life style any. That's a pretty good down payment on a house.
dude... you made one major miscalculation.... as you said, the car costs 20,000. the average person keeps their car for less than 4 years.... that means this guy also avoided paying for 4 cars.... figured at 20,000 each, that is ANOTHER 80,000 he saved.... so his total savings over the 18 years would have been closer to 162,800.
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Old 12-15-04, 07:55 PM
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Originally Posted by Hemlock
Not to take away from the man's success, but you can't really double bill for a car and the subway. Car free isn't an option for me, so my only savings are gas and repairs (due to less milage). Still, at today's gas prices that's not a trivial amount.

we are talking about ny here... you can replace the subway fees with parking fees
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Old 12-15-04, 08:17 PM
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Lots of people use two cars and don't think twice about it.

I've used my bike and mass transit for years, and don't think twice about it (except when I think about how much it would cost me to drive!)
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Old 12-15-04, 08:46 PM
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Originally Posted by mcavana
dude... you made one major miscalculation.... as you said, the car costs 20,000. the average person keeps their car for less than 4 years.... that means this guy also avoided paying for 4 cars.... figured at 20,000 each, that is ANOTHER 80,000 he saved.... so his total savings over the 18 years would have been closer to 162,800.
It's not quite that good. After four years, the average car still has some significant trade-in value.
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Old 12-15-04, 09:58 PM
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Originally Posted by supcom
It's not quite that good. After four years, the average car still has some significant trade-in value.
this is true.... but, I can also tell you that the last 4 cars i purchased (especially the last 2) cost considerably more than 20,000 too....

Not to mention the fact that over 90% of vehicle purchases are financed..... in 4 years, you will pay in interest what your car is worth when you are done with it!
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Old 12-15-04, 10:02 PM
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That's true, I forgot about parking. Round here it's $6.75 a day cause we're in an industrial park with a lot of space. In manhattan it's like $475 for a month.
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Old 12-16-04, 12:22 AM
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I kept pretty good track of money, and when gas was cheap I actually LOST money at first by commuting.

Why? I upped my calorie intake by about a thousand calories a day. Not consciously -- but I ate everything, ravenously. Granted this didn't last more than a week or so before my body calmed down, but since I was stuck on campus all day this worked out to another meal a day, around $5 at Wendy's.
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Old 12-16-04, 12:46 AM
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Don't forget to deduct the cost of that Bianchi plus helmets, new tires, tubes, brake pads, wheel sets, chain rings & cogsets from the savings. Its not much, but still a cost.
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Old 12-16-04, 08:01 AM
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Originally Posted by slvoid
Someone was telling me about how a coworker used to commute year round 25 miles a day through NYC to my job on his Binachi with a full dura ace groupset. He said he eventually saved up enough to buy a house by not taking the subway or buying a car.
Was Dura Ace around 25 years ago?

I don't consider the New York City subway that expensive. I always have a MetroCard in my wallet just in case the weather is horrible. I consider it a bargain and using during real cold weather can save you from getting sick and having to take time off from work. No amount of savings is worth coming down with the flu.

I know some guys that drive nice cars and still live with their mother. I also see other people driving new SUVs' but live in Section 8 housing. It's all a matter of what's more important to you.
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Old 12-16-04, 10:05 AM
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Having both a car *AND* a bike has not saved nearly as much as your office mate. Considering just gas (free parking)

$25/week * 52 * 3.5 = $4,500
2 used bikes + gear = $2,900
Gas Savings would be = $1,660

However commuting delayed replacing this 10yr old but nice looking Chrysler Concorde. 3.5 yrrs ago the car had 112K miles and now it has 119 and runs great.
Not sure how to map that cost savings
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Old 12-16-04, 10:15 AM
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Um... $82k will buy you a pretty crappy house in a pretty crappy neighbourhood around here. And that's just the downpayment too.
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Old 12-16-04, 11:12 AM
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Originally Posted by operator
Um... $82k will buy you a pretty crappy house in a pretty crappy neighbourhood around here. And that's just the downpayment too.
um...and $82K will buy you a decent house in a decent neighborhood here; and that's the whole payment.
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Old 12-16-04, 11:23 AM
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Originally Posted by Dahon.Steve
Was Dura Ace around 25 years ago?

...

I know some guys that drive nice cars and still live with their mother. I also see other people driving new SUVs' but live in Section 8 housing. It's all a matter of what's more important to you.
Well the subway's not that bad, cept for me, I don't have to stand around in a stuffy car for 2.5-3 hours a day whereas my commute by bike takes 1.5 hours max. It's usually 1:25 give or take 5.

He kept the same frame. I think he started with campy stuff and eventually upgraded to dura-ace when he went to integrated brake/shift levers.
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Old 12-16-04, 11:44 AM
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Originally Posted by koffee brown
Wow, and I've only been full time commuting for about 5 years now. 15 more years, and I'll have that house! Or I could just get married....

Koffee
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Old 12-16-04, 12:51 PM
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[QUOTE=Dahon.Steve]Was Dura Ace around 25 years ago?

Yes, I have one of the first Fuji Ace's, from 1974 ish it has full Dura Ace equipment.
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Old 12-16-04, 01:44 PM
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Originally Posted by operator
Um... $82k will buy you a pretty crappy house in a pretty crappy neighbourhood around here. And that's just the downpayment too.
Well think about it, I would assume that he's putting away some other money and regardless it's $82k towards a house that he wouldn't have otherwise had he driven for all those years. Not to mention the lack of stress from the twenty five years of driving in urban traffic he's saved himself by biking.
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