My journey toward car-free life began innocently (and naively) back in the summer of 2011.
I had a Pontiac G6 at the time that I determined had to go if I were truly going to put myself in a position to become financially independent by the time I turned 40. I knew I had to save well over 50% of my net income, and the $450+ per month I was spending on the car was absolutely impeding me from hitting that number routinely.
So I sold the car.
It’s funny. I’m not sure if I’ve ever shared this story publicly, but I had to take two buses to get home from the location where I sold the car (a Carmax located about 20 miles away). It took me more than two hours to get from the point of sale back to my apartment. Well, the last bus dropped me off about a mile away from my apartment, as public transportation isn’t exactly robust here in Sarasota.
So I started walking the mile home – in the dark, no less. But the whole way back home, I was just pumping my fists in the air, singing the theme song to Rocky in my head.
I felt like I had just conquered the world.
Well, that’s basically what I did, as that was a major step on my journey from below broke to financial freedom in my early 30s. So it was just a great move.
Other than a Toyota Corolla that I owned for just over a year, and a beater of a car I had for about a month, I’ve been car-free and carefree for almost five years now.
And I thought this would be a great opportunity to reflect on some lessons I’ve learned.
The Lifestyle Is Freeing
First, I’ll just say it’s a great lifestyle.
That’s largely because I’m able to actually experience the world around me with a sense of tangibility that I don’t think is necessarily accessible when you’re hurling yourself around in a giant steel box. Driving a car everywhere tends to insulate you, which I actually don’t like.
So even if living without a car were more expensive, I’d still prefer it as a lifestyle.
It gets me out of a bubble that I’d otherwise operate within most of the time. I walk a lot more. There are smells, sights, and sounds that I take in that I’d be hard pressed to experience if I were driving constantly. There’s a sense of serendipity that I can’t totally describe, yet I can say for sure I’ve compiled a ton of funny (and perhaps less funny) stories over the years that I wouldn’t have if I were just going from car to place and back to car.
I’m fitter. I’m more free. And I feel like it’s more fun.
A lot of people think I’m less free, but that’s not the case. The money I’ve saved by buying bus passes instead of depreciation, insurance, repairs, and gas has gone a long way toward helping me amass the collection of high-quality dividend growth stocks that now make up my Full-Time Fund. That portfolio, of course, has bought me financial freedom, which is the ultimate form of freedom, in my view. If you don’t own your own time, I’m not sure how free you can possibly be.
When I owned a car, however, I mostly just drove it to and from work. So I’m not sure how that made me more free? I was more free because I could drive long distances for no reason at all? I guess I just don’t get the logic. Indeed, they call the non-toll highways down here freeways (because there’s no toll), yet they’re often locked up with traffic. So I find the idea of them being freeways as kind of ironic. But I digress…
There’s a sense of purpose when it comes to trips when you’re living without a car. No aimless driving around town. No simple errands that don’t absolutely need to be completed. If anything, I find myself wasting less time, which frees me even more.
I instead only take the bus when I actually have to get somewhere. Or if I’m hitting the town for the night. Otherwise, I’m probably using my own two feet, which is really the best form of transportation.
Plus, when I’m on the bus, I can read, think, or nap. That’s way better than stressing out over what’s going on all around a car.
All in all, it’s wonderful. No liability. No traffic. No real concerns.
The Lifestyle Is Cheap
Cheap. Cheap. Cheap.
Did I say cheap?
The Bureau of Labor Statistics states that the average consumer unit spends approximately $9,500 per year on transportation.
Even if we take the (conservative) ~$450/month I was spending on my G6 as a baseline number, the car-free life is still an incredible boon to the journey toward financial independence.
I spend less than $50 per month on bus passes these days.
So let’s just say that I’ve saved $400 per month by living without a car.
If you compound that $400 per month at an 8% annual rate of return for just 10 years, we’re talking almost $75,000!
So, yeah, the car-free lifestyle has been absolutely crucial to me getting to where I’m now at. Not only was I able to save and invest a lot more, but it takes far less passive income for me to pay my bills and be financially independent.
Plus, there are less bills to remember every month. I don’t need to pay the insurance bill, think about gas, or send in a check for the car payment. If I can walk, I walk. If I can’t, I pay $1.25 to get across town. Very simple.
The Lifestyle Can Be Challenging
In all honesty, it’s also a very challenging lifestyle in some ways.
This is primarily because the United States doesn’t have very good public transportation in most cities. And I’m in a city (Sarasota, FL) that has very little public transportation infrastructure, making the idea of living without a car even more difficult. I’ve made it work through sheer will, but it’s not always easy.
But the only city in the US where not owning a car is the norm is NYC. And considering the extremely high COL in NYC, it might not necessarily make a whole lot of sense to live there for many of us.
Even in Chicago, which is probably my favorite US city, it can be tough.
The “L” train is primarily designed to get people from the north, south, and west sides to and from downtown, with all trains looping their way around the core of the city. But if you need to get from one neighborhood to another – say, traveling from east to west – you’re probably going to be taking the bus. And the bus is substantially less convenient.
Going from, say, Lincoln Park to Logan Square can be kind of crazy. I mapped traveling from Weiner Circle in LP to Gaslight Coffee Roasters in LS as an example, and it’s a 36-minute trip to go 3.3 miles (involving a lot of walking and taking the 74 bus). Uber is an option, of course, but if you’re constantly Ubering around, you’re probably going to lose any cost advantage to living without a car. And this is in what’s probably our second-most urban city in the country. Fairly unacceptable, really.
So you can be limited when you might not want to be. This isn’t even to mention trying to stay out well past the time when public transportation stops running.
However, I’ve found the best solution to this is creating a local economy. You basically try to live, work, and play in a small, local area. You have to be a little more thoughtful in terms of where you live relative to where you work and hang out. Your world shrinks, but you radically improve your odds of great experiences and serendipity. So there are pros and cons.
Another challenge is the loss of possible social engagements.
Not only might people be hanging out in a place that’s hard to get to without a car, but some people actually look down on someone without a car. They make assumptions right off the bat, which, right or wrong, can change relationship dynamics. Of course, I’d rather not even have relationships with people like this, so this hasn’t been a problem for me. But sticking out a little bit can be a big drawback for some people.
Using Chicago as an example again, less than 30% of the population lives without a car. A certain portion of this statistic is naturally due to poverty, meaning some people have no choice but to live without a car. So if you choose to live without a car, even in a big city (outside of NYC), a lot of people might look at you funny, and that could lead to social challenges.
Conclusion
I personally love living without a car. The cost savings have been significant, helping me reach financial independence as fast as I did. And even factoring out the cost savings, I still prefer not dealing with all the drawbacks of driving.
However, that isn’t to say that living without a car is perfect. No lifestyle is, not even early retirement.
There are some drawbacks. It can be hard to get to places that would be easy with a car. Social engagements can be negatively impacted, depending on where you live and how you build your life. One is obviously more prone to dealing with adverse weather, undesirable people, and schedules beyond one’s control. Waiting an extra 30 minutes because a bus broke down is a total bummer.
That all said, I think the pros of living without a car outweigh the cons. Will I be able to do it forever? Hard to say. But it’s been a great experience. I absolutely wouldn’t be financially independent in my early 30s if I would have never sold my car. So I guess I can deal with a few drawbacks here and there in exchange.
What do you think? Agree with these three lessons? Have you ever tried to live without a car? How’d it work out?
Thanks for reading.
Image courtesy of: Sira Anamwong at FreeDigitalPhotos.net.
That’s great. I wish we could go with driving less. Having kids makes it a lot more difficult – with soccer practices, schools quite a distance away, etc. If it were just me and I didn’t have a 9-5 I would definitely bag it. I ride my bike to work sometimes and hope to get back to more of that as the weather warms. Would love to live in a community where everything I need is within bike/walk distance.
envisionhappy,
Having kids probably makes it a lot more difficult. But my significant other has a child, and we do just fine without owning a car (she also owns no car). I guess it partly depends on how active your kid is with after-school activities and how easily it might be to get to those functions without a car. Either way, you have to plan your life around it and create a local economy as much as possible. It’s not a perfect lifestyle, but I find the pros vastly outweigh the cons. 🙂
Cheers!
Just discovered the blog. What a great post!
My wife and I have one child and plan to be car-free forever (hopefully). I think I talk too much about being car-free to ever actually go through with buying a car.
As you said in the post, your world shrinks (especially with a baby) but the world you live in becomes much more intimate.
We are planning on getting a Nihola Danish Cargo Bike in order to increase our mobility option. They are becoming much more popular in Chicago. They cost a few thousand bucks but don’t require gas and give you great exercise.
kngo1989,
Thanks so much. Glad you enjoyed the post! 🙂
Definitely. Your world shrinks, but it does become more intimate. For instance, I frequent a very small group of shops. I tend to work at the same coffee shop, shop at the same grocery store, and get food at the same eateries. So they recognize me. I guess it’s a return to old-school stuff, when people knew you a little bit. I think it grounds you in a way.
Glad to hear you’re from Chicago. I personally love the city. I’m moving overseas in a few weeks, but if/when I return to the US, Chicago is one of my top places to go. The taxes, winters, and crime are all a bit much, but there’s also a lot to like there. Methinks my passive income needs to grow a bit before I can make the numbers work, though.
Thanks for dropping by!
Best regards.
Have you considered getting a scooter or cheap motorcycle? $2k could buy a reliable scooter/bike and provide many of the benefits of having a car for around town driving, but would obviously be cheap enough so as not to compromise your savings rate.
Charles,
Absolutely. I didn’t go over it in this article because I wasn’t attempting to rehash an entire six years of my life (and because I went over all of it over at DM), but I had a 49cc scooter for a little while. They’re super fun. Really cheap, too. You can pick one up used for very little money. No insurance in FL necessary, no special license, and they get around 100 mpg. The only real issue at that point is safety. I actually had a couple close calls, so I just prefer to walk and use the bus.
Thanks for dropping by!
Cheers.
Do you ever utilize Uber or Lyft for anything or do you stick to the bus for the things that you aren’t able to walk to?
TJ,
I’ve used Uber once down here. It was okay, but it’s expensive because we’re quite spread out. The service is obviously a lot more convenient/cheap in a bigger, more compact city. Nonetheless, I just plan my life around living without a car. I can walk to most things (grocery store, gym, movies, etc.). So it’s generally not a big deal.
Best regards!
I have been without a car for now 20 years, I walk a lot and enjoy it, I get to work on my bike, only 2 miles, only in winter I am either walking or taking the bus, for emergencies (going to the vet or something the like) I use a taxi, not very frequently, saves me tons of money. Some people from work also give me a lift if I want it, but mostly I use that bike (rural area, not too dangerous).
Sometimes with heavy shopping I miss a car, but as I don’t shop excessively, it is still much better, no worries about fuel prices or finding a parking lot (parking is very expensive in Switzerland)
so, Jason, I wholeheartedly agree with you on that subject 🙂
Annabella,
Wow. 20 years?! Mighty impressive. I do hope I can eventually lay claim to a record like that. 🙂
I was actually just watching a video about public transportation in Zurich. That city really has it together. I’m not sure if you follow me on social media, but I posted/shared the video. Really incredible stuff. We have nothing like that here in the US, which makes car-free life far more difficult than it needs to be. It’s such a shame that our development (in the US and most other places worldwide) has been based so heavily around the car. I think if more people actually experienced a robust car-free lifestyle, they’d prefer it, costs aside.
Keep enjoying the car-free and carefree lifestyle!
Best wishes.
Jason,
I can fully relate to the Zurich example, living myself with my family in another well designed (public transport) Swiss city – Geneva. It all has 2 sides though, keeping such infrastructure requires a lot of money and so cost of living in Zurich or Geneva is several times that of average US or WesternEuropean cities – you couldn’t claim FI on 1000$/ month here, no matter how frugal lifestyle you’d have.
You get what you pay for.
Juraj,
Indeed, you usually get what you pay for.
Much of Western Europe is wonderful in terms of urbanity, walkability, public transportation, QOL, scenic beauty, etc. But it tends to be expensive in the relevant cities.
You have to make the best of what you’ve got. I’ve made the best of what I have here in the US, but there are always trade-offs. 🙂
Thanks for dropping by!
Best regards.
I wish I got paid every time some said to me, “Why don’t you buy a car?” or “You’re crazy for not having a car!!”. I was actually called some nasty things for not having a car. My reply to them is, ” How much money do you save?…If you do not save or invest any money, you actually make nothing “. I heard the latter watching a youtube video on paying yourself first.
I take buses everyday, without any major problems. Right now in the city I live in, I see so many people texting while driving. On average I see, like 5 accidents a week. Its against the law in this province to talk on phone or texting while driving, but it doesn’t stop people.
IP,
I agree with that. If you’re not saving/investing, you’re actually making zero. You’re just equally exchanging your time for your stuff. I’m not sure I’d call that “making” anything. But to each their own.
Great job with the buses. Buses have this image issue, where people really look down on the idea of getting around by bus. That’s a very expensive attitude to have.
Thanks for dropping by!
Cheers.
Jason,
Enjoyed the post and can relate to your arguments. I moved to the US about 4 years ago and initially planned to buy a car once I got settled into my new environment. Now after 4 years I wouldn’t get a car if they would pay me for it! I live in Washington DC so it is quite easy to get around using Bikeshare, walking, metro, bus and the occasional Uber/Lyft/Via.
However, the city is terrible for cars. It was built in the 18th and 19th century and was – I would imagine – great for getting around with your horse and carriage. Nowadays, traffic, parking, one way streets and confusing roundabouts make driving very stressful (at least for me).
I did (and sometimes do) get a lot of weird looks and questions from colleagues, but am happy take the reduced stress, extra exercise and of course money that comes with my choice.
Cheers,
Tall Investing
TI,
That’s awesome!
Yeah, DC is absolutely one of the best cities in the country to live in if you want to get by without a car. Those old NE corridor cities like DC, Boston, and NYC were all built up before the advent of the car, which means they’re perfect for walking, public transportation, etc. Although NYC is really the only US city that has “world-class” public transportation, one can definitely get by in places like DC, Boston, Philadelphia, or even Chicago. Not always easy, for sure, but driving isn’t always easy, either.
I find it interesting that you sometimes get weird looks and questions, even though you live in one of the best possible cities for that lifestyle. That’s a shame. Even in cities where it should be natural to live without a car, people usually still choose to drive. You can now only imagine the weird questions and looks I’ve been getting over the years living in a small city in Florida. 🙂
The only real drawback to living in one of the more dense cities in the country (like DC) is that there is oftentimes a much higher COL (relative to the less dense, car-dominated cities), but it’s a lifestyle call. I sometimes look at what it might be like to live in a city like, say, Chicago, and the COL difference means a studio apartment/public transportation (in a good neighborhood) costs almost as much as the combination of a one-bedroom apartment and car does down here. If you can make more money in your profession (especially if you’re a white-collar worker), that’s great. But that’s not always an option. And I think that’s just one example of why the car culture and associated development remains so strong. But changes are happening, fortunately. New development across the country seems to be more TOD, which is great.
Thanks for sharing!
Best wishes.
Jason, you made some really great decisions when you were younger that helped put you in a really great spot. Lots of inspiration to draw from.
Keep up the free lifestyle!
DiviCents,
Extreme output requires extreme input. 🙂
Glad you found some inspiration here. It’s not always easy to live my lifestyle, but nothing worth having is ever easy.
Cheers!
Hey Jason,
I couldn’t agree more. I’ve been living without a car for about a decade now myself. And while I’ve only really started to pay attention to my personal finances within the last 4-5 years, I know not having a car has allowed me to become debt free and amass the wealth that I have a lot earlier than I otherwise would have.
As suggested above, I’ve had various bikes for this time. And in addition to the lower cost of living, it has of course made me healthier in the long run as well.
Mr. Money Mustache just recently reviewed a book that’s somewhat related to this topic. You might be interested in it.
http://www.mrmoneymustache.com/2017/02/10/the-happy-city/
Josh,
That’s great, man!
I couldn’t agree more with you re: healthier in the long run. A little extra walking here and there really adds up over time. I mean, I’m at the gym six days a week right now, so I have that. Even so, I’m walking way more than I otherwise would be if I were driving everywhere. I even walk to the gym, which just bolsters everything else I’m doing there.
I don’t really follow any blogs any more, but I’ll have to see if I can check that post out. Pete, interestingly, lives in a very car-oriented place (and owns at least one car, perhaps two). It’d be interesting to see if he ever decides to follow through on some of these ideas personally.
Thanks for dropping by.
Best regards.
In Some of the major European City it is kind of normal to not own a car Particular in large cities, I lived 18 years across three countries in Europe without owning a car and mainly used public Transport [ Train, Underground Train, Trams and Buses].
In the US with the exception on NYC as you have mentioned it is a tough and require an extreme dedication or desperation due to limited availability of the public transport.
Thanks Jason for your insight on the matter. I have to say it is kind of very odd to be a without a car while working for luxury car dealer.
atm,
Very odd is an understatement. It was super ironic and funny to show up to a luxury car dealership by bus. There was more than one occasion where I’d step off the bus only to run right into a client getting out of his/her very expensive Audi. But I did what I had to do. 🙂
I do wish the US had more European-like development, but there are only a few cities that come anywhere close. And NYC is by far the best option if you want to live without a car. As another reader noted, he sometimes gets weird looks even in DC (which is one of our best cities for car-free living). The typical American just can’t imagine getting by without a car, and much of our development reinforces that idea.
Cheers!
Even without the financial costs, I’m so glad I don’t have to deal with car ownership. Nothing beats the liability that comes with running over a child because you looked away for one second to read a funny store sign or something, right?
I’m not AGAINST a car-based society, but I always liked this one line from an episode of Adam Ruins Everything: “Maybe our streets SHOULDN’T be filled with these two ton metal projectiles.”
Sincerely,
ARB–Angry Retail Banker
ARB,
I’m with you all the way. Being able to get around without having to constantly stress out about what’s going on around you at every second is really fantastic. It reduces stress in a major way, making the whole concept of transportation quite a bit more appealing.
Yeah, we have to have cars. Our society wouldn’t have grown the way it did without them. So they’re not necessarily a bad thing. But it seems like there could be better balance. My way of life isn’t for everyone, so I would never push car-free living on anyone. However, development could definitely be more balanced so as to give people more and better choices. I really believe that if more people were able to live a robust life without owning cars, they’d prefer it. Not everyone, of course, but some. And that’s a lot better than where things stand now. Hopefully, technology overcomes our lack of foresight, giving rise to autonomous vehicles, which could render personal vehicle ownership a lot less necessary in major metro areas.
Thanks for dropping by!
Best regards.
Great post, Jason!
I have now been car free since December 2014 and totally agree with your reasoning. I’ve been a lot happier without a car too. Also, I was actually working on a new blog post about why I prefer public transit compared driving over the weekend. It’s still a work in progress but it’s nice to know there’s someone out there who thinks the same as me on the topic. Thanks for sharing!
Graham,
Living without a car is great, if you can swing it. It’s just a shame that our infrastructure here in the US isn’t really designed to allow a lot of people to live robustly without the regular use of a car. NYC is really the only US city with world-class public transportation. But I think a life can mostly be fully lived (without too many drawbacks) in a handful of other cities (Chicago, DC, San Francisco, etc.). The issue is that the increased COL in these cities means that you might be giving up any cost advantage with car-free living. I prefer living without a car, even if it were to cost more, but I’ve definitely had to make some sacrifices in terms of the social life and some other things in order to make it work. All in all, though, I have no regrets. 🙂
Thanks for dropping by!
Best regards.
@josh, thank you for the link regarding ‘the happy city’
I find here in North America, our built environment is not very human scaled. Unlike older cities that I’ve visited in Europe.
Walkable, bikeable neighbourhoods are key to a happy city. The article describes it much better than I can.
Cycling is the most efficient form of human movement. Jason, I take it cycling in your neighbourhood is far too dangerous, sad. Our civic infrastructure is so very poorly laid out.
D.
D.,
Indeed. The planning and development of most of our cities after the advent of the car have been mostly geared toward living with cars, preventing much of the human-scaled development that is really so attractive to most people. There are very few people who would honestly prefer sprawl, tract housing, and strip malls over a human-scaled environment, yet they’ll most often choose to live in an place that provides the former rather than the latter. That’s due to costs. Because those human-scaled environments are so rare in this country, demand tends to outstrip supply. I saw what newer human-scaled development looks like when I spent a little time in Portland, Oregon earlier this year. It was really wonderful. But it’s expensive to live in those neighborhoods, pushing people with lesser means out into the areas of the city that are a lot like any other city in the country. We need to spend more time building out these environments and less time figuring out how to cram so many people in what already exists. In the meanwhile, my frugality and desire to live financially free mostly prevents me from living in places that provide the type of urbanity I really like, so I’ve had to make do with car-free living in a place that wasn’t really designed for it. Always tradeoffs. 🙂
Cheers!
Jason,
Really like this article. I have a car, but I use less than 1 tank of gas per month, and I don’t use it for commutes. My work covers my commute on the bus and DC metro, but sometimes I need to take it for a longer drive to training and other events not where my work is. Honestly, if it was not for that and weekend sports that I play, I would not own a car. My needs hers for work, and that is extremely unlikely to change. If you can map out a strategy to living without a car or only 1 per household, its a great improvement. A person can save so much darn money!
– Gremlin
Gremlin,
Absolutely. If you can get down to just one car per household, you’re in pretty good shape. I really think that if development in this country allowed more people to experience a robust car-free lifestyle, more people would actually prefer it. I grew up Motor City, yet I actually see great benefits to living without a car (financial and otherwise). The issue is that our built environment means that living without a car in most places entails a lot of sacrifices, some of which a lot of people aren’t really willing to make. I mean, you’re in one of the best areas of the country to live without a car, yet you still have one in the household. And as I noted in the article, it’s just a small minority of households in Chicago – one of our best options in the country for this lifestyle – that do not own a car.
Unfortunately, my car-free life is coming to an end here, as my new venture in personal training is going to require a car. I really wish our development across the country involved more foresight, but it just isn’t so. I’ve fought the good fight, though! 🙂
Thanks for dropping by.
Best regards.
Congrats on 5 years being car free. I’m on year 7 and the financial and health benefits exceeded my expectations. Even the psychological benefits of being without car maintenance concerns, parking issues and fender benders are amazing.
This lifestyle does require forethought in where you work and live, though. Working in a downtown area with lots of transit access was key in my case. Being resourceful in using other modes (cycling, buses, Zipcar, etc) is also important.
I can’t imagine the burden of car ownership again but I understand it’s not for everyone. Here’s to another 5 years of car freedom.
Mark,
Absolutely. It’s an amazing lifestyle. It truly is. I only wish America were better built for it. Our built environment and public transit networks don’t necessarily encourage car-free living, which is unfortunate. NYC is the only city in the country where there’s a critical mass of people who don’t own cars, meaning there’s a huge need for TOD and funding for transit. It’s just advantageous from a supply-and-demand perspective. Most places aren’t like this.
I’m currently moving over into the fitness industry, as I’m studying to become a personal trainer. I’ll almost certainly need a car for this, especially if I plan on private sessions. But even if it’s just a five-year chapter of my life, I’ll always be grateful for it and look back on it with pride. 🙂
Thanks for dropping by!
Best regards.
I’ve been living without a car for about 4 years now (basically my entire life since I got own of my parent’s house, they had two cars.) I can’t believe people fight me on the expense of their cars. You know you have legs for a reason….right? And your taxes are paying for public transportation already! Not to mention the eco factors involved with living car-free.
I did the math personally and you can save about $600 dollars A MONTH going car-free. Even if you have to rent a car or Uber once in a while a month, it’s still cheaper than $600! Americans have a horrible addiction to metal with wheels! 🙂
Lily,
There’s definitely a problem with our culture, but I think it’s exacerbated/incentivized by our development. Much of the US is tract housing, freeways, strip malls, etc. And there aren’t often very good public transportation options, which means that a car is necessary in a lot of cases (if you want to do anything away from home).
Fortunately, I’ve been able to structure my life around that. But it’s not always easy. I live within walking distance to a grocery store, movie theater, shopping plaza, a few restaurants, etc. And a bus line runs in front of my condo complex. But the bus service here in Sarasota was recently cut. The mall that’s nearby keeps closing stores. And I’m pretty limited outside of my local universe.
That all said, living without a car – even if it’s a temporary thing – is immensely helpful to the budget. 🙂
Thanks for sharing. And I hope you’re able to continue living that lifestyle (without too many other sacrifices).
Cheers!
Thanks Jason! Love your reply and I 100% agree. Somewhere along the way strip mall became a thing. It’s a privilege to be car free and I get that structure impacts choice. Thank you for sharing your thoughts with me Jason!