Comments on: Green Spot: My Second ‘Car’ aka The Bus http://blog.canadian-dream-free-at-45.com/2009/11/06/green-spot-my-second-car-aka-the-bus/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2009/11/06/green-spot-my-second-car-aka-the-bus/comment-page-1/#comment-35352 Canadian Dream Tue, 10 Nov 2009 14:06:49 +0000 http://blog.canadian-dream-free-at-45.com/?p=1101#comment-35352 CM, Thanks for the calculations. I forgot to consider tax on earnings. Caitlin, Ouch. That's awful transit. You think someone would clue into linking transit systems if you are that close. Tim CM,

Thanks for the calculations. I forgot to consider tax on earnings.

Caitlin,

Ouch. That’s awful transit. You think someone would clue into linking transit systems if you are that close.

Tim

]]> By: The Rat http://blog.canadian-dream-free-at-45.com/2009/11/06/green-spot-my-second-car-aka-the-bus/comment-page-1/#comment-35279 The Rat Sun, 08 Nov 2009 23:23:10 +0000 http://blog.canadian-dream-free-at-45.com/?p=1101#comment-35279 Now this is a perfect example of being thrifty and making sacrifices today for future benefits. Huge savings; nice post. Now this is a perfect example of being thrifty and making sacrifices today for future benefits. Huge savings; nice post.

]]> By: Canadian Money http://blog.canadian-dream-free-at-45.com/2009/11/06/green-spot-my-second-car-aka-the-bus/comment-page-1/#comment-35203 Canadian Money Sat, 07 Nov 2009 16:21:51 +0000 http://blog.canadian-dream-free-at-45.com/?p=1101#comment-35203 Opps...my math was a little off. The savings are a little higher than I first calculated. Earn G dollars in before tax gross income. Call T the after tax take home amount. Then, G - G (0.45) = T Take home = gross/(1-mtr) Gross earnings to take home $3,800 $3800/0.65 = $5,846 or 5,846/24 = $244 savings per bus trip. Let's look at this from a slightly different angle. How many hours would someone have to work at a lower paying job to earn $244 gross pay? @ $10 per hour...24 hours (3 days) @ $15 per hour...16 hours (2 days) For the total gross salary equivalent? @$10 per hour...585 hours or 73 days @$15 per hour...389 hours or 49 days Opps…my math was a little off.

The savings are a little higher than I first calculated.
Earn G dollars in before tax gross income.
Call T the after tax take home amount.

Then, G – G (0.45) = T
Take home = gross/(1-mtr)

Gross earnings to take home $3,800

$3800/0.65 = $5,846

or 5,846/24 = $244 savings per bus trip.

Let’s look at this from a slightly different angle.

How many hours would someone have to work at a lower paying job to earn $244 gross pay?

@ $10 per hour…24 hours (3 days)
@ $15 per hour…16 hours (2 days)

For the total gross salary equivalent?
@$10 per hour…585 hours or 73 days
@$15 per hour…389 hours or 49 days

]]> By: Canadian Money http://blog.canadian-dream-free-at-45.com/2009/11/06/green-spot-my-second-car-aka-the-bus/comment-page-1/#comment-35143 Canadian Money Fri, 06 Nov 2009 18:47:05 +0000 http://blog.canadian-dream-free-at-45.com/?p=1101#comment-35143 Great post! Calculating the rate of equivalent pay for the extra time required to save the money is an excellent way to look at ways to reduce spending. Carrying this reasoning one step further...consider the effect of income tax. $3,800/24 trips per year = $158 is the take-home pay required to pay for the second car. How much must one earn at work to have the $3,800? Assuming a marginal tax rate of 45 %... $3800 * 1.45 = $5,510 in gross earnings or $5,510/24 = $230 per trip. One has to earn an additional $5,500 in gross pay at work to take home an additional $3,800. Therefore, riding the bus to work 24 times per year, rather than paying he cost of having a second car, is equivalent to...having a part time job that pays in-the-order of $200 per hour. Cool! Great post!

Calculating the rate of equivalent pay for the extra time required to save the money is an excellent way to look at ways to reduce spending.

Carrying this reasoning one step further…consider the effect of income tax.

$3,800/24 trips per year = $158 is the take-home pay required to pay for the second car. How much must one earn at work to have the $3,800?

Assuming a marginal tax rate of 45 %…

$3800 * 1.45 = $5,510 in gross earnings
or $5,510/24 = $230 per trip.

One has to earn an additional $5,500 in gross pay at work to take home an additional $3,800.

Therefore, riding the bus to work 24 times per year, rather than paying he cost of having a second car, is equivalent to…having a part time job that pays in-the-order of $200 per hour.

Cool!

]]> By: Caitlin http://blog.canadian-dream-free-at-45.com/2009/11/06/green-spot-my-second-car-aka-the-bus/comment-page-1/#comment-35139 Caitlin Fri, 06 Nov 2009 16:38:22 +0000 http://blog.canadian-dream-free-at-45.com/?p=1101#comment-35139 Wow, I wish we had a transit system like that here! When I lived in Toronto it was awesome, and we could take the bus anywhere for way cheaper than a car. Now we live in Guelph and my husband works in KW, which is only about 20 min away. However, there's no inter-city bus lines except the Greyhound, which costs $8 per way, per day, and took about an hour and a half longer, including the walk to the station. That's about $3840 right there. I wish they'd just join the city transit systems. That would make things so much easier (and cheaper!). Wow, I wish we had a transit system like that here! When I lived in Toronto it was awesome, and we could take the bus anywhere for way cheaper than a car.

Now we live in Guelph and my husband works in KW, which is only about 20 min away. However, there’s no inter-city bus lines except the Greyhound, which costs $8 per way, per day, and took about an hour and a half longer, including the walk to the station. That’s about $3840 right there.
I wish they’d just join the city transit systems. That would make things so much easier (and cheaper!).

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