I’ll explain why you have to live close to work and go on foot, bike or bus.
I live in a condominium almost 20 km from the center of the city that I live in, most of the people who live here leave in the morning and come back at night. This question has to be tied tightly in your head as it is costly and harmful to have, keep and use a car to go to work, especially if it is far from home, there are some accounts but there is no way to not have it, that’s how I think $ X month x 12 (year) x 10 years.
A couple who lives in my tower each have their car, I do not know their jobs, but I know that each one goes in their car and they go to different places for sure.
There are 20km each to the center, 40km per day for each one, putting 10 km / l of gasoline to facilitate the bills, each one spends 4l of gas per day, just to work, here the liter is $ 3.85 , Multiplying by 4 = R $ 15.4 per day just to go to work, each in 20 working days gives 15.4 x 20 = 308 reais per month only of gasoline each.
Ah Frugal, for those who win 4 -6k net this is mixed …
Same? And how much are they giving up? How much interest are they failing to earn? And the financing of the house is already paid? Could the ap financing be made faster if they did not have the two motorized couches?
You can find several articles in the blogosphere of how much it costs to keep a motorized couch in the garage. I’ll do mine, well summarized.
Put there IPVA R $ 2000, Insurance R $ 2000, gasoline R $ 3700, parking R $ 300, laundry R $ 400, revision R $ 600 = R $ 9000 annual for a popular car, for the couple gives R $ 18,000 annual costs. This may vary depending on the cars and those other variables. Assume that keeping a popular gives $ 10,000 per year or a little less. For the couple gives $ 20,000 a year, $ 200,000 in 10 years, imagine how much the value of the car will not fall in those 10 years, at least a 50% will surely fall, Ok?
Let’s move on.
In this bakery account I made I am not putting the price of cars (which were bought zero km – Brazilian mania), the interest they pay from car financing (0.99% per month) and the depreciation of the value of the car, Soon here your equity will decrease over time, because the car is a PASSIVE.
A popular new FIAT PALIO is coming out for $ 37,000 from the store. Giving 12 thousand entrance and financing 25 thousand, let’s see how the parcels are:
See that we start paying interest of R $ 254 per month and it is going down, this is a lost money that you will never see again just for buying what could not and can not (despite the companies saying that you have – of course, this is Profitable for them). After 3 years, you paid R $ 42,400.00 in a car that probably will already be worth only about R $ 30,000 in your hand. These R $ 42,400 / 36 months will give R $ 1,177.77 reais per month x 12 = R $ 14,133 (annual car payment) + THOSE 9 thousand to keep the car that I spoke up = R $ 23,133 reais / year / Car for the first 3 years.
This beautiful account R $ 23,133 year/car x 2 cars x 3 years gives R $ 138,798 reais to the couple, and at the end of this will be with two cars removed and giving expenses of $ 18,000 annually the two cars.
As I said I think of 10 years as being your planning for Financial Freedom to take a better shape.
After spending the initial R $ 138,798 reais to buy the cars and keep them for 3 years, we will stay another 7 years with both cars, giving an expense of $ 18,000 x 7 years (R $ 9000 each car/year) = R $ 126,000 of spending in another 7 years. If you add up to the expense of the first 3 years, this will give R $ 138798 + 126000 = R $ 264798.
TWO HUNDRED AND SIXTY-FIVE THOUSAND REASONS FOR EVERY 10 YEARS!
That’s what I’m talking about!
How will this couple retire?
Imagine COST OF OPPORTUNITY THAT !!
Nice way to live life, huh? Impoverishing and standing in the middle of nowhere.
I keep looking around all this public property is dilapidated day after day …
Have you ever wondered how much value is lost daily in the national car fleet?
And who gets that loss back?
IMAGINE THAT PURCHASED INCOME FIXED SINCE THE BEGINNING AND THAT WALKED THE FOOT OR BIKE PRO WORK.
Oh Frugal, are you ordering me to walk? You go!
Friends, I want to reach where most will never arrive. Everything in life has its price.
As I said here, I live in the North of Brazil in a capital city, I do not work in one place, I have to travel 40km a day visiting clients and 3-4 different places a day, so for me under a sun of 35 degrees Celsius It does not.
But for you who live in the Southeast, South and even some cities of the Midwest gives yes.
Step one: Move as close as possible to work, especially if you work in one place, go in the morning and go out at night.
Step two: I think it’s acceptable to walk up to an hour’s walk to get to work (and get back on a ride, or bus, or bike, or taxi) – You’ll already be doing an exercise and preserving your health, Thinking about life and having a time for himself.
For those who live in SP Capital and near the subway I will not say anything else, right? With subway and Uber you only drive in SP if you want and stress in traffic. A friend of mine suffered a violent robbery in SP, received the insurance money, bought everything from LFT and is HAPPY riding the subway and Uber in SP, with no expenses with a motorized sofa and WINNING 900 reais per month of interest, You can cover the whole Uber and still have a change for Chopp.
Learn one thing:
TRAVEL COST PRO WORK IS HUGE! How much longer you live, worse! IMAGINE WHO LIVES IN ANOTHER CITY AND IS IN THE COMMUTING.
In all these accounts that did, SEE THE OPPOSITE SIDE, IF YOU HAD INVESTING ALL WINNING THAT INTEREST, HAVE R$ 300,000 every 10 years at least more equity! In 20 years, from 25 to 45 years, a couple could have almost 900 thousand in the account, yielding almost 9 thousand reais per month of interest ONLY FOR THEY HAVE LEFT OF CAR RIDING ALL DAY PRO WORK. Either living near or on foot will save you a lot. And you will hardly find a couple with 10 years of marriage with $ 300,000 in an investment account, HARDLY.
This is all a matter of perspective.
The practice of physical exercise does very well for the head, for health and pro pocket, going on foot or bike your life will improve a lot. It was the fear of stealing your car that you will not have, nor of any accident or collision to be at the loss and a few days without the car.
How many years of your working life would you save for a decade without riding a car? The simple fact of not having a car or two cars can add a lot of money to your investments and a lot more quality of life for you, think about it.
A man going to work on a bike. This is very common in Holland. Also in the UK, US, and Canada (increasingly adept). Driving in the UK and Canada is much more expensive than in the USA.
Also, who do you think supports FORD, FIAT, GM, Volkswagen, Honda, and Toyota? That, you. Outside the auto parts industry, petroleum (PETROLEUM) [Face imagine you, a reckless mortal supporting the entire oil industry], insurers, government (IPVA – hahaha), imagine 10 years or 20 years without paying that damn ticket to the Corrupt bureaucrats.
It was not my intention but you will also pollute the planet less (if you care, you will be in better health, you will have more money to enjoy with your family or your children and you can still put on a headset and walking listening to an AUDIOBOOK all day! Imagine then, many more hours a day listening AUDIOBOOK books you like, or classes or lectures youtube, finally a lot to learn while walking and saves. I like audiobooks, shame I only listen when I get home.
This AUDIOBOOK argument is totally unbeatable, totally unbeatable.
One day I spoke here about the Matrix.
The Matrix wants you to buy and keep a car.
The Matrix wants you to like family and friends with a car.
The Matrix wants you fat, indebted, without retirement and slave labor (imagine if you get unemployed as you will pay and keep the car?).
The key to freedom lies in taking control of your life in your hands, practicing frugality, simplicity, renunciation of certain customs and living according to your own life projects. Freedom is an idea. In life or the Matrix wins, or you win. If you do what most do, you will end up in the same place as them, the slavery of the counter-check, the uncertainty of the future, and poverty in old age.