Financial updates

12/7/2009 Day 31

Financial Updates

Let me preface this by saying that I didn't really start tracking daily expenses till 9/23.  You should also read my equipment post to see what I am investing in equipment.  Current running total is $2,853.

Since 9/23/2009 (2 months, 14 days) I have put 2,403 miles on the van, using 144.827 gallons of fuel costing me $399.92.  This averages out to 16.59mpg or $0.17/miles. With insurance, comprehensive w/ a $300 deductible is $20.17/month (say $50.43).  $450.35   For the untracked period from 8/17 to 9/23, we'll estimate $200 ($20+), giving us an estimated total of $630.49 -- we'll come back to that number.

I had intended to track the generator usage as well, but have little to go on right now.  The last time I filled it up was 9/28.  I put in 2.2 gallons, costing me $5.68.  I have used it a couple times since then, but still have most of the fuel.  I am pretty sure I won't be using it much at all during the winter.  When Spring comes around, I will give it an oil change start tracking it more.  $456.03

During this time, I also spent $15 for an inspection sticker.  I am behind on an oil change, so that needs to be done soon. While the correct method is to divide that by 12 and come up with $1.25/month, we'll pretend the van won't make it to next inspection and assume the full $15 cost now.  $471.03



Using our estimate for August through September, we'll assume I spent $671.03 on operating costs, along with equipment costs of $2853 (total $3,524).  This gives us an average operating cost of $223.67/month and a total average cost of $1,174.67.

If I had an apartment, it would cost me $500 + utilities.  I would have spent $2000 in rent plus my share of utilities, which used to run me at least $100/month.  At this point, I would have paid out $2400 in rent and utilities.  Assuming these numbers hold up, I save $376.33 each month vs an apartment.  Taking my current total cost of $3,524 and subtracting the $2400 I would have paid, I am left with $1,124 more than the cost of an apartment.   It will take three more months (March) to break even or 8 months since purchasing to fully break even and start truly saving over the cost of an apartment.

However, that's missing a very crucial element.  My operating costs include the cost of transportation.  Based on the first paragraph, I spend approx $180/month on fuel at 16mpg.  My Kia gets 24mpg, which is 33% more efficient.  If I drove the Kia, I would still be spending $120/month on gas on top of the apartment.  So my $376.33 savings each month is actually $496.33.   Four months of apartment + utils + fuel = $2,880.
Remove that from the total van cost of $3,524 and you are left with $644.  At this rate, I should be breaking even by the middle of February and well ahead by March. 

There is a change coming that will make this even more desirable.  Starting this week, I will be parking the van at work and driving the Kia down to it.  Doing so will eliminate most of the fuel costs from the equation, saving  an additional $180/month.  My primary costs at that point will be insurance and propane.  I do plan to start up and move the van somewhat each week to ensure that it is operating properly, so that will eat up some of the fuel in the vehicle.  Plus I plan on doing any other regular maintenance the van needs (like the oil change) -- It needs to remain in fully functional working order.