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Friday, February 8, 2008

Carfree Life: Doing the Math

According to a 2004 American Automobile Association study, the average American spends $8,410 per year to own a vehicle. That’s equal to $700 per month, and a lot of potential savings when you throw away your keys.

How much? If you take those $700 each month and invest them in an 8 percent annual return, it'll really add up. You'll have enough to do something like make a down payment on a house—$18,153—after two years. Five years of car-free living will net you enough to, say, pay cash for you child's college education (or about $51,433).

Planet Green

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