$10,000 is an absolute amount, and not a relative amount. I don’t know how much Len makes every year, and what expenses he has.

If he only makes $20,000 a year, and he has a mortgage, car loans, wife, kids (some who may be in college), then $10,000 is a lot of money.

If he makes $200,000 a year, and he has limited expenses, then $10,000 isn’t that much.

A better question I believe would be ask to see whether one would take a “10% pay cut”

Understanding the “costs” of working is important because it shows you the true income replacement number if you were to work from home or do something else to attempt to replace your main income.
.-= 20smoney´s last blog ..A Beginner’s Guide to Buying Gold Coins As An Investment =-.

I’m glad to hear your new commute is working out.

I spent the last 25 years commuting from 20-30 miles each way. Most of these commutes weren’t so bad at around 30 minutes each way. But, during the 90s I worked at a job with a 30 mile commute that took almost an hour and a half each morning. (Average 20 MPH) I would just wait until 7:00 PM to come home and it would only take 30 minutes. I quit that job after 20 months because it wasn’t worth the hassle.

Now, I am really fortunate to have found a job in my home town and I have a 3.1 mile commute. I would have definitely taken a $10K pay cut to get rid of the commute. It’s not only the time, stress and money, it’s the feeling of being near home all day. I can pick up my daughter from school or have lunch with my wife or my brothers. It’s really nice.
.-= Bret @ Hope to Prosper´s last blog ..Secrets to Becoming Successful =-.

As you point out, the real issue is measuring the cost against the alternatives. In your case, the cost of moving closer to work is huge. For others it could be a question of finding a replacement job that would justify quiting to work closer to home.

Of course, you’re also living in a area that doesn’t get regular traffic snarling snowstorms, so the decision is a bit easier. Still, I love the analysis. When you crunch the numbers, it isn’t the three headed monster it often appears to be at first glance.
.-= Kevin@OutOfYourRut´s last blog ..Blue Collar Jobs Can’t be Moved Offshore =-.

@Bret: I’m glad you’ve got a short, pleasant commute. There is a lot to be said for the freedoms of a short commute; like you mentioned, coming home for lunch or taking the kids to school sounds really appealing. Heck, if I were that close I would probably ride my bike in to work most days!

@Kevin: I truly thought the financial costs would be greater. I was pleasantly surprised. Like I said though, the best part of all is that the minimal impact to the time component.

@Paris: I agree. I love driving, but not on busy roads. Ever drive a stick shift in bumper-to-bumper traffic? Not good times!

@Steven and Debra: Let me first say, I have been enjoying your hoarder series! I’ve read the first three parts – I need to check out Part IV. As for what I do to occupy myself for about 40 minutes each way every day, I bounce all around the radio dial – although I have been considering books “on tape” for a while.

Shortened URL: http://tinyurl.com/move-or-commute
.-= Ironman´s last blog ..2.15 Million Federal Employees =-.

Len, I see you mentioned wear-and-tear in one of your bullets. Did you factor this into your calculations, or did you find it to be negligible? (A 1997 Civic with a 5-speed is probably reasonably cheap… I assume… to maintain) Also, what about parking? Did it go from free to free or is parking harder now as well?
.-= Paul Kamp´s last blog ..Cutting Up the Card =-.