Frugaling

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Stop Wasting Money On Your Commute

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Traffic Jam Commute

We all want to maximize our take-home-pay, but with the constant increase in fuel prices, getting to work is costing a fortune. Thankfully, there are some easy, fun, and fast ways to reduce your commuting costs. Here are 7 ways that will put more money in your pocket:

1. Carpool Partner(s)

Find someone who lives near you and set up a deal to take turns driving to work. My co-worker lives 40 miles from work and has been fortunate enough to find someone to commute with.

Pros:

  • You’ll get to know a fellow employee better
  • You save on gas
  • You have a little flexibility since you are working with someone you know
  • Accountability, as you are more likely to be on time or early with someone else counting on you

Cons:

  • You don’t have your own transportation during the day
  • If you or your co-worker needs to stay late, someone has to wait
  • If you have an emergency and need to leave early, you may need to pay for expensive transportation

2. Third-Party Carpool Service

If you can’t find someone on your own, perhaps your area offers a carpool matching service. St. Louis and surrounding areas can take advantage of the RideFinders program. This program is free to use and funded by the Department of Transportation as a clean air initiative. RideFinders matches people with similar commutes.

Pros:

  • Potentially large commuter base
  • Someone else does the matchmaking for you

Cons:

  • You don’t have your own transportation during the day
  • Little to no flexibility as the arrangement is more formal

3. Vanpool Services

If there are enough commuters, you may way to consider the vanpool option. Vanpools are most economical for groups of 7-12 commuters that commute over 30 miles to work. One person volunteers to be the primary driver/coordinator for the vanpool. In exchange for all the coordination, the driver gets to use the van for personal transportation on nights and weekends!

Pros:

  • Driver can use the van for personal trips
  • You don’t have to use your personal vehicle
  • Meet new people (7-12 in typical vanpool)
  • RideFinders offers a Guaranteed Ride Home if you have an emergency or need to stay late
  • Commuters eligible for tax deduction though IRS Commuter Choice fringe benefit plan

Cons:

  • Driver has added responsibility of coordination (possibly time consuming)
  • Limited eligibility (most programs require certain number of people and distance)
  • Little flexibility in emergencies
  • Price split between commuters can cause price to fluctuate (30-day notice is requested before leaving)

4. Public Transportation

If you live in a city with a decent public transportation system, the bus/rail/subway could save money on your commute to/from work. Some employers will even pay for a monthly bus pass. A few years ago, I had a position in downtown St. Louis where parking was non-existent. The building was right across from a Metro Rail station, and taking the train to work made perfect sense.

Pros:

  • Save on gas and vehicle wear/tear
  • You’ll have to do a little walking, which is good for your health
  • Typically, public transportation runs frequently during work hours
  • Employers may provide public transportation subsidies; subsidizing or eliminating the cost

Cons:

  • Little privacy
  • Public transportation can be crowded and noisy
  • Not available in all areas

5. Bicycle

Perhaps you only live a few miles from your job…consider biking to work! You will shed some weight and keep more cash in your wallet. Personally, I live too far from my job for this option, but our Metro System has an accompanying bike trail. Many commuters bike to the nearest metro station, take the rail, and ride into work. If I didn’t have to pick up my son from day care, I would explore that option from time to time!

Many employers encourage health and wellness, and may provide lockers and shower facilities. Some people are invigorated by morning exercise. If you are one of those people, this may be a great option.

Pros:

  • No gas expense or wear/tear on your vehicle
  • You’re getting exercise

Cons:

  • You need to invest in a quality bike and safety gear (not really a bad thing…but an expense)
  • Limited by distance and environment (make sure your commute is safe!)
  • You need physical stamina
  • Forced to travel light
  • Dependent on weather
  • Need a backup plan in case you’re too tired to pedal home, emergencies, or inclement weather

6. Compressed/Alternative Work Schedule

The compressed work schedule is a wonderful thing! I currently take advantage of this and absolutely love it. Basically, in an 80-hour workweek, I get every other Friday off by working 9 hours (instead of the typical 8) Monday – Thursday, then Fridays I alternate between short days (8 hours) and being off. Count it – it’s still 80 hours.

Alternative work schedules (sometimes called flex) allow for variation from the employees core hours without altering the total number of hours worked in a pay period. A common alternative work schedule is 4 10-hour days. This means employees would have 1 weekday off every week. Most choose Friday or Monday to have a 3-day weekend. Another common day is Wednesday, because you are only working a max of 2 days in a row.

Entire states have implemented 4-day work weeks in the past (California and Utah come to mind), but this is a benefit many employers will offer if you ask.

Pros:

  • Break up the monotony of a 5-day work week
  • Employers benefit from extended work hour coverage
  • Quality of life benefit that makes employers competitive for best employees
  • 1 day a week you don’t have to drive to work
  • Potential flexibility

Cons:

  • You’re working longer hours when you are at work
  • Not available unless your employer approves

7. Telework

The last technique on the list is to save money by not commuting at all. If you are able to telework full or part-time, you can save money at the gas pump. Telework is basically working from home. Organizations are split on if teleworking employees are productive. If you take advantage of this option, be sure to show results! Also, full-time teleworkers often complain of being overlooked by their company.

Networking goes a long way and that is hard to do if you’re not in the office. Employees may have the option to use a hybrid approach, and telework once a week or pay period. I’m not eligible for a regular teleworking schedule because of the nature of my work; however, I can telework sporadically with supervisor approval. Usually if there is reporting or paperwork that I know will keep me in front of my desk all day, I request teleworking on that day. I haven’t been turned down yet!

Pros:

  • Immediate savings on cost of driving to work
  • Potential savings on clothes (dress in what you’d like!)
  • Save time for yourself and your company, as you can begin working faster

Cons:

  • Not available to all employees
  • Not suitable to all industries
  • Requires discipline
  • Full-time telework employees are often overlooked/report feeling detached

What about you?

There is not a one size fits all method for saving on the commute to work. You have to factor in what is available and your personal preference. I use the compressed work schedule with an occasional telework day (averaging once per quarter).

  • Do you employ any of the methods listed above to save money on your work commute?
  • Are there additional methods that you can employ?
  • If so, what are they?

MomCents is a 30-something Christian, wife, and mother of a 2-year-old son who is jumping back into the wonderful world of blogging with her attempt to create a personal finance/mom blog. If you’re looking for expert advice, she advises you to stay away! But, if you want to follow the ups, downs, twists, and turns of a real person who will make mistakes along the way…stop on by. Hopefully you’ll find a laugh, encouragement, or both! Find MomCents on Twitter and Facebook.

Resisting The Urge To Buy, Buy, Buy

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Shopping at the mall resisting the urge to spend

I scanned the bookshelf and held a new copy of The Girl With The Dragon Tattoo in my hands. The binding was unbroken, and the pages were cut like perfect rectangles — the book hadn’t been read.

It’s a favorite of mine, and it was being sold for the bargain price of $3.99. Looking at the back cover, I could see that this regularly cost $9.99. Alarm bells pinged in my head and I thought, “This is a steal! Does anyone know about this? Oh, I can’t let this stay on the shelf; Stieg, you shall be mine.”

I promptly proceeded to carry the new book around the store. My insides smiled as I clutched this deal that others had stubbornly missed. It was my prize, and I had won the shopping game.

But nowadays, in my frugal state, I’m a bizarre shopper. Instead of purchasing that “steal,” “find,” and “treasure,” I held the book throughout the store, and when it came time to actually checkout, I stuck it on some random piece of furniture (no doubt, annoying the shop’s attendants — I’m sorry!).

This goes against everything we are told about the psychology of shopping, but it feels oddly exhilarating. See, marketers know that if they can just get you to touch, feel, and hold an object, your likelihood of purchasing said object skyrockets. If their cameras were trained on me they would’ve seen me flip out about the deal with my friend, predicting a subsequent checkout — book in hand. But in the end, they’d be dead wrong.

There’s an oozing potion that comes from having things. To covet and hold seems so… American. We buy bigger vehicles for bigger homes to fit more stuff. We are a nation of filler-uppers; yet, the favorite part about shopping is in our imaginations — that split second when our minds scream, “buy, buy, buy.”

When I pick up that book, I imagine flipping through the thriller’s tantalizing pages and having the book forever. I picture it sitting on my shelf, a testament to that one time I read it and a beacon of conversation among friends. “Oh, yes, let me tell you about crime, affairs, and sordid protagonists in Sweden,” my imaginary voice already quips to a non-existent audience. The reality is far simpler and boring. I’d read it, stick it on a table, and be done with it.

There’s an alternative choice. I could rent it from the library for free. The $4 — deal of the century — is still more expensive and takes up more room than a temporary library book. What could be a better deal than free?!

To hold the book is like picking up a favorite drug and almost getting high. And at the last moment saying, “No. I’d rather spend my money on something else. I’d rather travel to France with my rudimentary language ability. I’d rather save up for a more comfortable future — one not spent working endless hours on a treadmill that always runs towards death.”

These days, I can hold the magic potion that I struggled with so much — spending wantonly. I can smell the elixir that is the rush of a purchase.

And I can say, “I don’t need this.”

Defeat Massive Student Loan Debt With Public Service Loan Forgiveness (PSLF)

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Diploma
©Alex Kalmbach/PhotoXpress

You can’t imagine how terrible student loan debt is until you are faced with the bill — for the next 20 years of your life. This was my predicament 5 years ago, after I graduated from pharmacy school with about $220,000 of student loan debt.

I know what you are thinking, “But Christa, that number is outrageous!” Trust me, I know! About $30,000 of my student loans was from undergrad and the rest from pharmacy school. I would love to tell you that I only took out the minimum amount of loans to get by, ate ramen for every meal, and delivered pizzas 8 days a week, but I didn’t. I lived like most college students do without much of a budget. I wasn’t really thinking about my future self having to pay it all back with interest.

The 18-year-old student loan decisions have serious consequences

There is a lack of education concerning student loan debt among colleges. As a student, you are not usually educated about the repercussions of getting yourself into massive student loan debt. You make shortsighted financial decisions that can adversely affect your life for years and years.

Some of the student loan debt is because you are giving “free money” to a bunch of stupid teenagers (I can say this because I was one!). Some of the debt is also because tuition costs have skyrocketed. For instance, the pharmacy school I attended now costs $33,990 a year. This equals $135,960 in tuition for pharmacy school! That doesn’t even include undergraduate costs or costs of living.

Many post-graduate/professional degrees require this significant student loan burden

Many graduate degrees cost hundreds of thousands of dollars. How can anyone possibly afford this? Many need significant student loans and financial aid. I took student loans out because they were necessary for my dream job as a pharmacist. After pharmacy school, I was told that I’d pay for the next 20 years. My student loans cost more than the mortgage on my house!

I’m not the only person in this situation. Some have gotten into debt from graduate school and others have gotten into major student loan debt from undergrad alone. Fortunately, in 2007, the government started the Public Service Loan Forgiveness (PSLF) program.

The PSLF program is for those working for the government or in the public service sector. If you find a job in one of these areas and make on-time, scheduled monthly payments for 10 years, your remaining loans will be forgiven. But there are some important caveats and rules to look out for.

Confusing, right? Trust me, it does seem complicated when you are first starting out. Some people will start to look into it, get stuck, and forget about it. Lucky for you, I’m here to help!

Fundamentals of the PSLF program

What type of job do I need?

Qualifying employment includes:

  • Those who work for the government (ex- military, public libraries, police officers)
  • Those who work for public service non-profit company with a tax exemption code of 501(c)(3)

Tip: You can call human resources or even check your companies website for their tax exemption code.

Which type of student loans qualify?

Federal loans that were received under the Federal Direct Loan Program.

If you have student loans under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, you can consolidate them into the Direct Loan program in order for those loans to be eligible.

Note: Private student loans are not eligible.

What repayment programs do I need to be on?

  • Income Based Repayment (IBR)
  • Income-Contingent Repayment (ICR)
  • Pay As You Earn Repayment Plan
  • 10-year repayment plan (this is kind of silly since you would have nothing to forgive after 10 years)

What qualifies as an on-time, scheduled monthly payment?

In order to be on-time, the payment must be made no later than 15 days after the due date.

For the payments to count, scheduled monthly payments should be in active repayment status. You can’t be in a grace period, forbearance, and/or deferment.

Object Wealth Christa
Christa from Object Wealth

Where can I find out more?

You can go to the Federal Student Aid website. They have a bunch of information regarding student loans.

You can also come visit me on my site where I talk about all things personal finance, including my step-by-step guide to the Public Service Loan Forgiveness program.

This is a guest post from Christa, the founder of ObjectWealth.com, a blog on personal finance and her journey to go from massive debt to building financial independence. She is also a hospital pharmacist and loves watching Game of Thrones (even though it gives her nightmares).

I Just Received 200,000 Visitors In 2 Days

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Google Analytics Screenshot of Web Traffic

Late Sunday night I published an article about work in America. More specifically, how the 40-hour workweek harms productivity, the environment, and psychological health. The next day, I woke up to find over 50 people on my website. And then something crazy happened.

After my article was published, it was shared on the social networking site Reddit. Currently, it’s the 53rd most visited site on the net. The users of Reddit tend to be more tech savvy and interested in social issues (but isn’t limited to these areas). My article struck a chord with people that support the Occupy Wall Street (OWS) movement and workers’ rights.

I decided to go over to Starbucks yesterday to complete some academic research, as my site was beginning to launch into a mad frenzy of traffic. In my typical frugal fashion, I had a reward and even got another free refill before I left! I was buzzed by the caffeine, but even more because of the analytics. Hell, I couldn’t concentrate on the research writing because the numbers started to grow.

Suddenly, it hit the hundreds. OWS supporters shared it on Facebook and the niche social site, Hacker News. I texted a couple friends and let my mom know what was happening. Mom hopped on the site, and I could see her individual visit. That’s the last time I could see a person’s click.

I began to tweet out progressively higher traffic statistics, which came from free Google Analytics. When I hit 200, I looked back at Reddit. A big-time user and moderator of one of the largest “subreddits” had shared my article on no less than three other boards. The über popular “Futurology” subreddit generally has thousands of visitors at any one moment. That’s when I could tell it was all about to rollover into the most popular article I’ve ever written.

From there, the article rocketed to the top of five major boards and was shared on Facebook nearly 2000 times. I kept watching the traffic — still ticking higher. It was like gambling or playing a videogame, except I couldn’t lose. The real-time traffic statistics constantly updated every second, and the visitors didn’t stop.

Every time I thought I had hit the max number of visitors at one time, it went up even further. I thought it would all stop before 500, 600, 700, 800, 900, and 1,000. But it didn’t. The highest recorded real-time, active visitors clocked in at 1,212 (see the screenshot above), with my web server straining to handle one more person.

I struggled to get to sleep because the traffic was still in the 900s by Monday night. When I finally began to drift, I assumed that the number would be back to more reasonable levels in the morning. I thought, “Maybe it’ll be around 100 or so?”

Surprise surprise, that wasn’t the case. When I woke up around 9 AM, the site was still reaching about 900 people — 150-200 visitors per minute. The stress on my server hadn’t ceased and my site was still inaccessible for much of the morning.

I was shocked by the total amount of traffic that was driven to my site over two days. Despite being a nerd through much of my life, I had no real appreciation for the level of traffic available on the Internet. After two days, my site has received about 200,000 visitors (probably more than that, due to tracking and server issues). That’s roughly three times the population size of my adopted home, Iowa City.

I was lucky to be able to share this experience with Twitter followers, friends, and family. As a writer, it put a serious smile on my face that people cared that much to read and share my work. I’m deeply honored and humbled by the magnitude of support. Thanks for your support by sharing the article and reading all about it!

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