Forget Reality T.V.; Public Transit Can Make You Rich

Riding public transportation is one way to put money in your wallet and Caltrain is launching a new campaign to show you how. Investing these savings wisely could help the frugal rider put their kids through college or make a down payment on a house.

The American Automobile Association estimates that the average cost of driving a car in the Bay Area is about 40 cents per mile. Drivers are practically giving away precious dollars when compared to the cost of taking public transportation.

On Caltrain, the trip between San Jose and San Francisco is about 50-miles, the same distance that many people commute by car each day. Based on AAA’s study, a driver would pay $20, not including the cost of parking in the City, to make the one way 50-mile trip, while a train rider can make that same trip for a total of $7.00. Five dollars and 50 cents covers the trip plus another $1.50 for parking.

Drivers spend more than $400 per month, making a 50-mile round trip, but a transit user saves up to $257.50 a month by taking the train.

Investing the $3,090 in annual savings, could help pay for your child’s ivy league dreams, a beautiful home or a great vacation.

Plus, you’re saving yourself the stress of dealing with traffic congestion, accidents and break-downs by letting public transit help get you there. And it gets better. If your company offers a transit subsidy, you could be saving nearly $5,000 or more per year. By investing that kind of extra cash, transit really could help make you a millionaire.

Caltrain will be offering a handy savings chart (PDF, 14.25 MB) to help you work out your annual travel savings (PDF, 275.5 KB) and a free piggy bank for all of your extra cash. To receive a free bank, send in one of Caltrain’s “millionaire” ads appearing in local papers.

AAA bases its estimates on typical vehicle depreciation, insurance coverage, fuel and loan costs.

9/28/04