Unexpectedly Intriguing!

The following question was asked over at Some Assembly Required:

Is there a simple formula that combines the price of gasoline, the one-way commute in miles, and per-hour wages that will let those in the exurbs (and soon, suburbs) figure out when it's time to move back to the city?

The answer, obviously, is yes! Felix Salmon was kind enough to develop the formula, which we've tweaked to create the tool below! Should you move closer to your work? Just plug in the indicated data below, and we'll find out how seriously you might consider the idea:

Rent or Mortgage Payment Data Input Data Values Amount of Your Current Monthly Rent or Mortgage Payment [$USD] Amount of Monthly Rent or Mortgage Payment at New Residence [$USD] Commuting Data Price of One Gallon of Gasoline [$USD per gallon] Mileage Your Vehicle Gets During Your Commute [miles per gallon] Number of Days You Commute to Work Each Week Number of Weeks Your Work Each Year Current One Way Distance for Commuting to Work [miles] One Way Distance for New Commute to Work [miles]



Approximate Annual Commuting Costs Calculated Results Values Your Current Annual Commuting Cost Your Annual Commuting Cost from Your New Residence Difference in Annual Costs Difference in Commuting Costs [Positive if Higher] Difference in Annual Rent or Mortgage Payments [Positive if Higher] Total Difference in Annual Expenses [Positive if Higher] The Bottom Line Should You Move Closer to Your Work?

The tool above only provides a rough approximation of whether or not it might be beneficial to move closer to your work. If you get a positive indication, that means it's worth exploring the idea, with an eye to looking at a wider range of the difference in costs between where you live today and where you might consider living. Things like insurance expenses, food prices, or taxes should be considered before committing yourself to packing up and moving!

For instance, you wouldn't want to move closer to your work in Chicago if that meant having to drive all the way back out to the suburbs to do all your shopping and to eat out to avoid the highest sales taxes in the United States!

Labels: gas consumption, personal finance, tool