Becoming a Commuter to Save Money?

[Mrs. Redbeard]

Here's the situation:

Hubby and I live in a small 1-bedroom apartment in the SF bay area. Here are the stats:

660 sq. ft.
$1350/mo for rent (I know...I know)
$24/mo for Internet
~$25/mo for electricity/gas
1 mi from both of our jobs
4 mi from my nursing school (done June 2014)
Total Cost:~$1400/mo

The dilemma: I recently came across a posting for a detached cottage about 3 towns over. Stats:

550 sq. ft. (We have shared a 375 sq. ft. while in college....so this isn't a huge issue...it would just mean some downsizing)
$950/mo rent
$24/internet
$252/mo for public transportation passes for 2 (dropped off w/in a mile of work and school)
Total Cost: $1226/mo

This means a savings of $2088 a year! And because I have to stay in the area for school, it seems like a HUGE bonus I could use toward paying off school loans.

Hubby is a bit hesitant as this would add about 20min-30min to our commute each way.

So the big question is:
Do we add a little more planning to catch a train, and more travel time in order to save $2088?

I would appreciate any insight. It seems so obvious that we should TAKE THE MONEY....but for some reason we are both hesitant....I think we have just been so spoiled by our "commute". Thoughts (and thank you!)

[sdeng87]

As somebody who walks to work, I say no way....

[Another Reader]

+1.  You are in nursing school, which takes a lot of time, plus you can walk to work.  No way would I consider a move until the nursing school is over.

[the fixer]

You should consider the value of your time. Think about how much stuff you can get done around the house and how much it's worth that you had the time available to do it.

For instance:

• Selling or buying things on Craigslist/eBay
• Gaming rewards credit cards
• Miscellaneous side income
• Learning how to fix something that breaks instead of just throwing it out and buying a new one

A personal example: last night I filed an amended state income tax return because originally I didn't realize I could deduct the interest on some savings bonds I cashed in last year. I was debating if it was worth the hassle of gathering my records and figuring out how to do it, but because I had free time last night I decided to give it a whirl. ~20 minutes later, I had my amended return filed online for an extra $79 refund! That's over $200/hour of income. Sure, 20 minutes isn't a lot of time, but if I had been stressed out about how little free time I had I might not have bothered. I originally overestimated how long it was going to take to do, and I also underestimated the refund I'd get.

[matt_g]

Your time is worth something.  I wouldn't do it.

[.22guy]

I say no. You might save a little cash but time is more precious a commodity in my book.

[Dee18]

I agree with the suggestion you stay where you are until you finish school.  The cottage would cause a major increase in commuting time for both of you.  Plus there are always incidental expenses with moving.  With rough calculations, that would be 300-500 hours of extra commuting time for the year.  You could instead work 200 hours, at $ 10 per hour, during the year for $ 2,000 if you really want that extra money.  congratulations on almost finishing school!

[limeandpepper]

I don't think I would do it... I currently commute, but as a relative example, I wouldn't live even further out and get a longer commute even if it means saving a couple thousand bucks. And moving can be stressful and cost money too.

[marty998]

Is the new place going to be a better place to live for your life circumstances/goals/aspirations?

If yes move, if no then don't. I'm not fussed about a 20 minute commute. Sounds complainypants compared to my 3 hour daily one. Many Sydneysiders have it worse than me too.

IMO a choice between renting is no choice at all. You should buy a place where you want to live. But don't listen to a random internet voice like me to decide your living arrangements.

[directionseeker]

If your added 20-30 minutes commuting time is going to be an uninterrupted journey, I will say go for it. You can do plenty of things on bus like reading books to learn new stuff, listen to audio that teaches a new concept or just seeing more people in your life will be good enough sometimes.

I have no idea how much you can earn if you don't spend those time commuting, from what I see from your number, the saving is instant once you make the move. Also, as I stated above, you don't really "waste" your time if you have additional commuting time of 20-30 minutes now. You can still plan something around your commuting journey to enhance yourself (a lot of people done that so can you).

Another reason why I think you are more lean toward moving is because you only stated the benefits you gain from the moving but not the benefit you gain from staying put. I would think that your mind is already thinking to move to the new place and get that saving, and you know you can afford that 20-30 commuting time.

I think maybe the only obstacle you have now is that little resistance from your husband. You can try to sell the saving part to him and also the arrangement you are going to make to make this works best for both of you. Find out what is his concerns in that 20-30 minutes commuting time, is it because he will have less time to spend with you? Is it because the heavy workload he is working on now? Or maybe he just need more time to rest.

Whatever the concerns, you will have to sort it out with your husband and make this works for both of you. Good luck.

[bluecollarmusician]

I appreciate your way of looking at the numbers, but I think that if you are looking for a way to maximize the money here is what you are looking at:

Move= Saving $170/ month

Cost= 2 hours/day (2 people at 60 minutes round trip)*20 working days per month =40 hours of time (it may be more than that depending having to be early ready, not miss public transit, etc.)

this amounts to about $4.00/hour. 

This also assumes that you never miss the bus and have to grab a cab, and that everything goes perfectly all the time.  I know for me, I would pretty much be guaranteed to have at least a once a month "oops" where I would need to get somewhere in a hurry. 

This also takes no account for the convenience of your current situation- of course, it is also does not take into account the neighborhoods- maybe the new place is cooler, etc.

My suggestions based on your info:  you have limited time, and theoretically unlimited earnings potential.  For such a small pay off, don't limit your time.  If you have 40 hours a month to spare, then find a way to monetize it with a part time job close to home, or develop a new skill- easily worth $4.00/ hour even if you can't monetize it right now.  Also, if you have been a good renter use the power of negotiation.  It is possible that your landlord would happily negotiate a small deduction in rent for long term renters who take care of the place and always pay on time- this is not uncommon (although probably more so in SFran.) 

Only you can decide what is right for you- but if are really serious about paying down those loans, I think that you could more likely find a part time job that would give you a much greater return.

Good luck whatever you choose!

[burly]

This also assumes that you never miss the bus and have to grab a cab, and that everything goes perfectly all the time.  I know for me, I would pretty much be guaranteed to have at least a once a month "oops" where I would need to get somewhere in a hurry. 

Personally, I think this is the only valid drawback to moving. I strongly concur with the posters above that bus time is not lost time. It is 'restricted time'.  Have you been meaning to read a book lately? I know I have, that would be my designated reading time. Driving is, in my opinion, wasted time with the exception of it can be a nice transition from work to home if you work in a high stress environment.

Perhaps it's just me but my life is go-go-go, so when I find 'restricted' time, I embrace it. Besides, the extra cash is nice!

[Mrs. Redbeard]

Thank you all for the help!

nathanc- I was thinking more along the lines of "restricted time" as well. Time on the train=time studying or doing homework :)

That being said...there is another person in the house who's time could be better spent on other activities/side hustles that are surely worth more than $4.

I am a bit restricted in side-hustling due to crazy school schedule...but that doesn't mean hubby is! This really helped our discussion!

[jpo]

The way I read it MMM is about building efficiency into your life. Moving 30 minutes out to save a couple bucks is definitely the opposite of efficiency - you'll be consuming more resources to get back and forth.

[noob515]

I'm not fussed about a 20 minute commute. Sounds complainypants compared to my 3 hour daily one. Many Sydneysiders have it worse than me too.

I spend 4 hours a day commuting.  I would kill for a 20-30 minute commute.  But prices are insane in DC.  I do a lot of reading on the train (most of the cost of my monthly train ticket is subsidized by my employer, so that's helpful). 

Also, when I was a broke grad student, saving $200/month would've been a no-brainer for me and my husband.  You won't be in school forever, so it's not like you can't move closer again once you graduate.