Author Topic: Move to reduce commuting time, but to more expensive area  (Read 4127 times)

Abe

  • Handlebar Stache
  • *****
  • Posts: 1265
Move to reduce commuting time, but to more expensive area
« on: April 27, 2014, 10:19:40 PM »
I would appreciate your thoughts on this. My wife has a new job in a different neighborhood in Chicago than where we currently own a condo at $2000/month ($500 of which is principal, the rest interest and taxes).

 If we move to that neighborhood, she will have a 5 minute commute. She makes approximately $60/hr, and will save 28 hours a month in commuting time ($1680 extra income). I'll have a significantly shorter commute time to the two places I work at (but don't get paid more). In addition, we will make about $50k from selling the condo. However, the equivalent size apartment would be about $3500 a month (net loss of $2000) for 3 years. Gas costs will be cut by about $250/month.

If my calculations work out properly, monthly extra expense is:
+ 3500 (rent)
- 1500 (interest and taxes no longer spent on condo)
- 250 (gas savings)
- 1680 (extra income)
Sum: $70/month extra

Do these calculations make sense? Any comments pro or con are appreciated.

chasesfish

  • Magnum Stache
  • ******
  • Posts: 3377
  • Age: 37
  • Location: South Carolina
Re: Move to reduce commuting time, but to more expensive area
« Reply #1 on: April 28, 2014, 04:26:50 AM »
I'd move, I'm personally enjoying my new two miles commute.  I'd bike it if I didn't have to use a car to go visit clients

dcheesi

  • Pencil Stache
  • ****
  • Posts: 907
Re: Move to reduce commuting time, but to more expensive area
« Reply #2 on: April 28, 2014, 04:45:32 AM »
Other things to consider: do you spend a lot of time in another area outside of work? Would you be able to get rid of a car? Will your wife really work all of that extra time?

On the first point: my office is moving closer to downtown, which will about double my commute (from 8-10min to 15-20). But I spend a lot of time downtown outside of work, so it may end up being a wash in terms of overall driving.

Edit: stupid autocorrect!
« Last Edit: April 28, 2014, 08:37:41 AM by dcheesi »

Thegoblinchief

  • Guest
Re: Move to reduce commuting time, but to more expensive area
« Reply #3 on: April 28, 2014, 07:03:15 AM »
How is the reduced commuting time gained income?

Beckyemerson

  • 5 O'Clock Shadow
  • *
  • Posts: 66
Re: Move to reduce commuting time, but to more expensive area
« Reply #4 on: April 28, 2014, 07:53:29 AM »
I would move. I hate commuting. I would rather live in a less fancy house than commute. If you search hard enough you will probably find something mustachian fancy for your price range. I currently live in an area where I am expected to pay around 2700 rent for a single family house. That to me is WAY to much money. I could have found a place with a longer commute for much less, but I refuse to commute. So instead I searched and searched. I found a single family house for much less only 3 miles from work. The are many features that anti-mustachians would deplore. The bedrooms are a little small, the bathroom is outdated, there is a lady that lives in the attached mother in law apartment, the carpet is old, the yard is not manicured, and the neighborhood is older. As a mustachian, none of these things bother me but I greatly enjoy the extra money in my pocket :)

Look hard you might be surprised what you can find. We have moved a lot and I have been pretty successful finding something every time.

dandarc

  • Magnum Stache
  • ******
  • Posts: 3678
  • Age: 37
Re: Move to reduce commuting time, but to more expensive area
« Reply #5 on: April 28, 2014, 08:42:05 AM »
How is the reduced commuting time gained income?

I'd guess, you gotta try and quantify it some how.  Plus, depending on the work arrangement, she may be able to use some of the found time at the job too.

In my current arrangement, I can do just that - pretty much work as many extra hours as I want, making up for missed time for vacation, illness, etc.  I do have a hard annual cap on hours, but the flexibility allows me to take the occasional day off and still get paid for close to the annual limit.

lackofstache

  • Bristles
  • ***
  • Posts: 313
Re: Move to reduce commuting time, but to more expensive area
« Reply #6 on: April 28, 2014, 09:44:48 AM »
I would appreciate your thoughts on this. My wife has a new job in a different neighborhood in Chicago than where we currently own a condo at $2000/month ($500 of which is principal, the rest interest and taxes).

 If we move to that neighborhood, she will have a 5 minute commute. She makes approximately $60/hr, and will save 28 hours a month in commuting time ($1680 extra income). I'll have a significantly shorter commute time to the two places I work at (but don't get paid more). In addition, we will make about $50k from selling the condo. However, the equivalent size apartment would be about $3500 a month (net loss of $2000) for 3 years. Gas costs will be cut by about $250/month.

If my calculations work out properly, monthly extra expense is:
+ 3500 (rent)
- 1500 (interest and taxes no longer spent on condo)
- 250 (gas savings)
- 1680 (extra income)
Sum: $70/month extra

Do these calculations make sense? Any comments pro or con are appreciated.


They don't make sense to me as I still don't see how not commuting adds $1680 of income. Hours you're not working don't count the same as hours you are, unless you're making as much money by not working as you do working. Is time worth something, yes. Is time 1:1 for income, no.

If you're right, though, and it'll only cost $70/mo more, but there's new found TIME, I'd do it. If you'll be using that time to travel back to where you used to live to see friends, eat, go to parks, etc. it may not be worth it.

Abe

  • Handlebar Stache
  • *****
  • Posts: 1265
Re: Move to reduce commuting time, but to more expensive area
« Reply #7 on: April 28, 2014, 05:11:56 PM »
The commuting time translates into more time she can work at the clinic. Having to drive a half hour each way would force her to start clinic later and finish earlier.

dcheesi

  • Pencil Stache
  • ****
  • Posts: 907
Re: Move to reduce commuting time, but to more expensive area
« Reply #8 on: April 29, 2014, 08:29:26 AM »
The commuting time translates into more time she can work at the clinic. Having to drive a half hour each way would force her to start clinic later and finish earlier.
So she gets paid for the extra time, and her employer is happy to have the extra hours from her?

How many total work hours are we talking about? Are you sure that she will be willing & able to tolerate the extra work time every day, week in and week out?

Abe

  • Handlebar Stache
  • *****
  • Posts: 1265
Re: Move to reduce commuting time, but to more expensive area
« Reply #9 on: April 29, 2014, 08:49:52 PM »
To clarify, she's a physician so it may be different than in other fields.

She sets her clinic hours, the group is always happy to have longer clinic when the nurses and support staff is available (8am-8pm). Currently her schedule is 30 clinical hours a week, she'd like to be working about 40. This scenario would allow for 35 hours per week. Sitting in the stupid traffic is a lot more draining than taking care of people, so she's happy to move. At any rate, compared to the 60-80 we work now, that's awesome!

On a side note, I'd rather us both be working 20 hours a week, but that's for when we're financially independent!