True Cost of Commuting: 6 Ways To Stop Overspending on Your Daily Drive

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Between 2022 and 2024, 50% of companies established a return-to-office policy, according to a report from Deskbird.com. A survey from ResumeBuilder.com showed that 90% of businesses with office space will return to in-person work by the end of 2024.

While company leaders report that having an in-office, or at least hybrid, business model improves productivity and revenue, daily commutes strain workers’ wallets.

Costs of Commuting

A 2023 study from the U.S. Chamber of Commerce, reported by Urban-Transport-Magazine.com, revealed that the average commuter pays nearly $5,750 annually to commute, with costs rising to $12,650 in San Francisco. Commuters in Los Angeles, Washington D.C., and Boston pay more than $9,000 per year.

Commuting costs for drivers may include:

• Car payments
• Insurance
• Gas
• Vehicle maintenance
• Parking fees
• Tolls

If you are feeling the financial pinch of returning to work, you can evaluate your daily habits and see if you can cut costs.

Use Public Transportation

Public transportation typically costs less but may add time to your commute. Plus, you’ll have to pay for train, subway, or bus tickets. If you’re commuting from the suburbs into a major city, you may need a car to get to and from the railroad station. You may save on fuel costs and reduce wear and tear on your car by driving fewer miles.

You will also eliminate the stress of driving in traffic and free up extra time to read, get additional work finished, or decompress during your train ride.

Carpool

If public transportation isn’t an option, you might consider carpooling with work colleagues. This can cut your costs in half if you take time driving. However, some of the fixed expenses of commuting, including your car payments and insurance, won’t change if you carpool.

Purchase a More Fuel-Efficient Vehicle

It might be worthwhile to invest in a smaller, more fuel-efficient car, or even a hybrid or electric vehicle. You’ll need to weigh the costs of purchasing a pricier EV or hybrid with the life-time fuel savings.

Hybrid vehicles get better mileage in stop-and-go or city traffic, so if you have a long commute on the highway, you might not save much money with a hybrid vehicle. On the other hand, affordable, gas-powered sedans like the Honda Civic or Toyota Corolla boast price tags under $30,000 and incredible fuel economy, GOBankingRates recently reported.

Also, consider federal and state tax credits and other incentives for buying an EV or plug-in hybrid. Keep in mind that some EVs and PHEVs no longer qualify for federal tax credits as of January 1, 2024.

Make Sure Your Vehicle Is Properly Maintained

If you opt to keep your older vehicle, make sure to give it the care it needs to perform at optimum efficiency. Ensure that your tires are inflated to the proper pressure to boost your gas mileage. Make sure your car gets regular service, including oil changes. Replace air filters every 12,000 to 15,000 miles. A clean air filter can boost your car’s fuel efficiency, since it ensures the engine is getting the right amount of airflow, Mike Nocera, owner of Long Island Mobile Mechanic  previously told GOBankingRates.

Consider an Electric Bike

Depending on the length of your commute and the climate in your region, an electric bike offers an affordable alternative to a car. E-bikes can have a range of 20 to 100 miles on one battery charge, depending on the size of the rider, the terrain, and how much effort you want to put into pedaling.

Depending on where you live, you might be able to use your e-bike year-round. But even if you can’t, riding an e-bike, or a traditional bike, to work during the warmer months can help you save money. It also offers an easy way to fit exercise into your busy day.

Ask About Reimbursement for Commuting Costs

As employers mandate a return to the office, some are willing to pay all or some of their employees’ commuting costs. Even if your boss hasn’t offered to cover your train tickets or reimburse mileage, it pays to ask.

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