You may remember that a few months ago I started to ride the bus to work two times a week. I feel good about that action because I save roughly $20 a month and help contribute to the green movement by consuming less fuel.
Then I read my company has offered a PayFlex plan for mass transit commuters. This allows employees of my company to deposit pre-tax money into public transportation program. On top of that, they’re giving takers of the program a “reward” of $15 a month. After some calculations, I clearly saw this was the way to work. My commute is about 22 miles each way. On average, that takes about 45-60 minutes to get from home to work and work to home. If I ride the bus, it adds another 30 minutes to each way which may seem excessive and unbearable to some. For me, it isn’t too bad. I get to catch up on my readings and writing. So here is how I’m going to save $145 a month.
1. Cancel my monthly parking membership at work – subtract $60
2. Stop driving my car to work – subtract $120 for gas savings
3. Other savings (pre-tax savings + $15 work life balance) – subtract $20
4. Get a metro card by enrolling in the PayFlex Mass Transit program – add $55
Total savings -145 = -60+-120+-20+55
I’m going to put this $145 in my Roth IRA account. That’s $1,740 a year, folks. And, since I’m a great believer in compounding interest, I project, in 10 years, at a saving rate of 10%, with more savings of $1,740 a year, this $145 is going to turn itself into a whopping $30,504.23. I admit finding a 10% rate of return is a bit hard in this slow economy. The bottom line is, you can save $145 or more a month too.