Monthly Archives: April 2013

How to Cut Transportation Costs?

bike sharingGet rid of your car
New York City has an excellent transit system and having a car is not necessary. Check this calculator out which tells you how much you can save by using public transportation versus driving.

Get a bicycle

New York City is very bike-friendly and getting even friendlier. There is an increasing amount of bike paths which makes this mode of transportation very convenient. The New York City Cycling Map is a free bike map that the city produces each year and shows the network of existing and planned bicycle lanes, routes, and greenways. Also, NYC is starting a bike sharing program with hundreds of bicycle docks all over Manhattan and parts of Brooklyn. It costs $95 for an annual membership which includes unlimited 45 minute rides.

ZipCar
When you need a car, you don’t necessarily have to own one. With ZipCar, a car sharing program, you can pay $60 annually with a one time $25 application fee. There are different plans with different costs based on your planned usage. Unlike rental cars, you don’t have to wait at the car rental agency to reserve a car. You reserve online or by using your mobile phone, use the zipcard provided to you to unlock the car which is located at various locations, and then drive off.
zipcar_Manhattan_background

$5 OFF Your First Year! Join Zipcar Today!

Carpool
Consider car pooling to work. If you can’t find coworkers or friends who you can carpool with checkout this website for a carpool partner.

How to save money as a car owner
traffic

Some people need to have a car for various reasons. I do own a car and it is definitely an extra expense. But, I work on Long Island and the commuting costs using the subway and LIRR would be more expensive than driving. Also, I do often visit family and friends where it is much more convenient driving. Yes it is an expensive luxury, but worth it for me.
One great way to save money on gas is to use a card that gives you cash back when you purchase gas. Here are two cards that 5% cash back for gas purchases:
The PenFed Platinum Cash Rewards Visa Card You get 5% cash back but only .25% on all other purchases so only use this card for gas. The rewards are automatically credited to your account each month.

Sallie Mae World Master Card This card gives you 5% cash back on your first $250 of gas purchases. It also gives you 5% on your first $250 of grocery purchases and 5% on your first $750 of book purchases. I just got this card recently and it is my go to card as I often make purchases at gas stations and supermarkets. The best part is that purchases at Amazon often counts as book purchases, however you may not get cash back if it from an Amazon marketplace seller and not directly from Amazon.

Gas Buddy
Checkout this website or download the App to find the cheapest gas stations in your neighborhood. The only downside is that it does not tell you whether it is the price for credit or cash. I generally use credit because I get 5% cash back and even when cash is 10 cents less than the credit price, I still make out better. (If gas is $4.00 per gallon, 5% is 20 cents, 20 cents > 10 cents).

Don’t pay extra for Premium or Super gas
Unless your vehicle’s manual says to do so, the higher priced gas has no real effect on the efficiency of your engine. And if your vehicle’s manual only says that Premium gas is “recommended,” then its possible to use regular, read this.

Drive less!
Yes, this is obvious, but I just have to get this off my chest. While I do have a car and I do drive. I do not drive when walking is an option. I went with my wife to the local supermarket recently and we came back with 2 bags each. Our neighbor looked at us puzzled and asked, “why didn’t you drive?” Ahh, because it was only 4 blocks away?!
It also drives me crazy when I’m at a shopping center and everyone is fighting over parking spots right by the entrance of the store. The cars are idling waiting for a spot, stalking shoppers walking to their cars or yelling at other drivers. This often happens even when there are plenty of parking spots a little farther away from the entrance. Listen, just park farther away and walk. Walking is great exercise. You save yourself some stress and probably some time.
The worst example of driving when it is entirely unnecessary was when I was waiting behind a school bus dropping off children afterschool (this was in the suburbs of Long Island). I saw a mom drive her car to the end of the driveway to pick up her kids. Seriously? If I didn’t see it, I don’t think I would believe it.

How to cut housing costs

One of the highest fixed expenses for most people, but especially for those living in NYC and other High Cost of living areas is housing. So here are few options to reduce this cost.

Move to a low cost of living area
I have a friend living in upstate New York who shares a house with 2 other friends and they each pay $300 per month for rent. That won’t even get you a parking spot in Manhattan. I sometimes wonder how much more I could save if I lived in a Low cost of living area, and I could even buy a house. Unfortunately, there are many reasons why this option is not available to everyone, whether it is that their career is here or their family is here. But there are other options.

Move farther away from NYC
It seems that many New York City transplants feel like it is Manhattan or bust. But, when you live a farther away from Manhattan, you can find more affordable rent. And when I mean move farther away from Manhattan, I don’t mean just mean Williamsburg, Park Slope and Hoboken. Obviously these locations are in great proximity to the Manhattan and this is reflected in the rents. You will still be able to get to the city within 30 minutes to an hour, living farther away.

apartment building

Move in with roommates
Sure, you thought you were done with roommates after college, but to save money, you should try to live like you’re still in college.

Renthackr

Renthackr

Renthackr


RentHackr, Inc., creates a place to see what current apartment renters are paying and a forecast of when apartments will become available. On RentHackr, renters help each other by anonymously sharing their apartment’s rent information with other members on the RentHackr map. This website is still in its infancy and with time and more users, it will provide a great resource.

Negotiate with your landlord
It doesn’t hurt to try to negotiate a lower rent. Whenever it comes time to renew the lease, I write a letter to the landlord telling him what a great tenant I’ve been and that I always pay my rent timely, and he gives me a rent discount. You may also receive a discount if you sign a longer term lease.