With Cadel Evans making history by claiming the exclusive yellow Tour De France jersey for Australia, now may be the perfect time to welcome a new cash-saving era of transport. Your Money Magazine reveals the benefits of swapping your car for the humble push bike.
According to a recent report from the Australian Bicycle Council, the cost of operating and maintaining a bicycle is around 5% of a car.
While there’s no doubt that many Australian families need a car, the uncertain economy is prompting more Australian families to get rid of their second vehicle.
If you’re not convinced, consider these points:
- Private transport sits just behind food in the top two major household expenses nationwide.
- Immediately after purchase, a vehicle has already racked a hefty tab, including compulsory vehicle tax, insurance and on road costs.
- The NRMA estimates that additional expenses for most households varies from $108.70 to $313.74 per week for keeping a car; equating to $5,652 and $16,314 per year. Could that money better serve you in your savings account?
The figures paint the picture of what many of us already know- having a car is expensive. However research by Ride On Magazine reveals a single-car household could enjoy savings of up to $3.5 million over the course of their working lives by switching to pedal powered wheels.
And, according to Ride On’s calculations, a 25-year-old who ditches their car in favour of a bike could easily add an additional $1 million over their working life to their retirement nest-egg.
If the promise of a huge capital gain isn’t convincing enough, there’s more good news for cycling converts. Many insurance companies are adapting their policies to accommodate for the two-wheeler trend. For instance, widely known insurer Youi provides a personalized service, calculating premiums based on the applicant’s individual circumstances.
Other than the financial and health drivers associated with cycling, the increasing environmental conscience of our government plays a key role in attracting households nationwide to make the switch. In Sydney, a 200 kilometre cycleway network is under construction, designed to facilitate safe riding connections between residential, work and recreational areas around the city, inclusive of its surrounding suburbs.
From all the recent findings, cycling is certainly looking like an ideal long-term investment with barely any losses. Can you afford to refuse a savings option that trims the physique but beefs up your wallet?
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