Why I ride my bike all winter

In August 2017 I bought a bicycle from Hollyloft in Jamestown for $400. I did not buy it because I’m interested in biking. I bought it because I’m interested in saving money.

“Ryan, you spent $400 to save money?” Yes, I did, and I will, a lot.

Because I bike or walk to work every day, I’ve only put 1,500 miles on my car since August. In that time I’ve spent $107 on gas, $80 on repairs (it turns out cars break less when they’re used less), and $750 on insurance. After 10 years of owning this car the depreciation rate is negligible, and I don’t make monthly payments because I would never buy a car I couldn’t pay for outright.

Projecting out for a total year, my cost is $1,499 to own this car. Compare that to the average yearly cost of car ownership: $8,469. My yearly savings is $6,970, or $580/month.

And here’s the beautiful part: If I take that $580 and invest it in the stock market, in 10 years I’ll have $100,484. (Here is how I came up with that.)

Right now lots of people are complaining that they took away parking spots in front of Dods Hall.

Apparently, lots of people think those parking spots are worth $100K each.

[PS — if you’ve been paying attention to the links I’ve posted on this blog, you’ve noticed I love Mr. Money Mustache’s website. Here’s my favorite article from him on car ownership.]

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