Revving Up Savings

One factor to consider when returning to school for an MBA is whether or not you still require an automobile. Ditching your beater (or beamer) can result in substantial savings. Indeed, AAA estimates that it costs the average American $9,641 a year to operate their vehicles. Now, as a student you may not hit the 15,000 miles a year that this figure is based on, but it is clear that some major moola is at stake. And money from two sources—the operating costs realized each of your two years in school and the extra money from the sale proceeds that you can put towards tuition/reinforce your Charles Shaw fund. Four factors to consider:

• Other Transportation Options

If you’re living close to school and the community you live in has solid transportation options like public transit, zipcar, and relayrides, then you may be able to do without a car. However, if you’re commuting to school and/or are going to school part-time and need a vehicle for work, you’ll need to look for cost savings elsewhere

• Post-Graduation Destination

Where are you planning to live after school? If you are going to school in commuter friendly Washington, DC, but know that you will be returning to transit wasteland Des Moines after school the decision will be less desirable than if you are planning on living in a city with great transit options afterwards.

• Current Vehicle

How much can you reasonably expect to get for your car? If you’ve just purchased your ride in the past few years, then you may want to think through the previous factors without a different lens than someone who whose car won’t fetch much on craigslist.

• Fitness Level

Are you physically fit enough to get your duff to school via walking or biking? Will doing so add a heap more time to your day and prevent you from pursuing other goals?

Any other factors that I’m missing? Comment and let me know.