Personally, I love being car free. Here are 3 benefits of being car free.

Between auto loans, maintenance expenses, and roller coaster gas prices, perhaps one should consider the option.

I do not own a car (never have). However, I live in New York City where we have a large robust public transportation system. In addition, I just walk pretty much everywhere anyway.

Ditching the car may not be a feasible option for everyone.  For example, if you have children, you may need your car to travel from place to place.

If you live in a rural area, or a place with poor public transportation, it may also not be feasible to get rid of your vehicle.

At the same time, there are plenty of people with cars that do have the option to eliminate the vehicle entirely.

Yet, for a variety of reasons they will not.

For some, owning a vehicle is a status symbol. Something to impress others with, no matter what the cost.

Some are just lazy and don’t like to walk. I know one guy who called an Uber to drive him to his car that was parked 3 minutes away.

If you have the option to get rid of the vehicle? Why not?

3 Benefits of Not Having a Car

1) Saving Money

It is no secret that by not owning a car, you will save money. No insurance payments, no maintenance fees, and no auto loans to pay each month.

The average American family is now spending $5,000 per year to fill their car up with gas. That is up from $2,800 just one year ago.

Furthermore, according to AAA, the average cost of owning a car is nearly $10,000 per year.

That is a sizable chuck of cash for more people.

Imagine if you could save $10,000 a year (or $833 per month), by not owning a vehicle.

Moreover, what if you invested that $10K a year into the stock market? The market has returned a bit over 10% per year over the course of the last century.

After 20 years of investing $10K per year, you would have over $630,000. After 30 years, you would have over $1.8 million dollars.

That is compound interest in action!

Is owning a car to impress someone worth $1.8 million in lost wealth? That is what a car is really costing you. You decide.

2) Improving Physical and Mental Health

A great alternative to driving is to walk or ride a bike.

The benefits of a brisk walk are numerous, as are the benefits of biking.

You strengthen bones and muscles, improve cardiovascular fitness, lose body fat, improve your mood, energy levels, sleep better, reduce stress / tension, and prevent heart disease, stroke, high blood pressure and cancer.

Walking is great. We humans are built to move, not stay seated. Millions of years of evolution have molded us into upright walking beings.

100 years of automobiles and 80 years of food abundance does not erase the hundreds of thousands (to millions) of years of genetics that evolved us into hunter-gatherers.

Obesity and mental illness have become a huge problem in the world (especially the West). A large part stems from us becoming stationary. Our genes are crying out for us to move.

I walk 2.3 miles to work each day and 2.3 miles back home. The trip takes about 40 minutes each way. I get up nice and early to make this walk to work.

I love that walk. My co-workers give me a shocked look when they find out I walk.

“What if there is a blizzard?” “Don’t you get hot?” They ask.

I have walked to work during blizzards (it’s awesome). And yes, it could get hot during the summer, but I walk anyway. I am in great shape because of it.

3) Less Impact on the Environment

Want to help the environment? Ditch the car.

The typical passenger vehicle emits 4.6 metric tons of carbon dioxide (CO2) each year. In 2020, passenger cars produce about 3 billion metric tons of CO2 (which was down due to pandemic lockdowns).

I always find it amusing when certain people in this city tell me how concerned they are about climate change and that we need to do more to reduce our impact.

Then they drive off in their (or their parents) gas-guzzling SUV’s.

That fact is, my carbon footprint is much lower than theirs.

Conclusion

And with 3 Benefits of Being Car Free we ask the question: is it time you ditch the car?

Only you can answer that question based on your circumstances. For me, the answer was always yes.

Not needing a car has been a benefit to my health and wallet.

What do I do with all the money I save?

I put the money to work for me. I invest the money I save into dividend growth stocks.

Over the past 7 years, I’ve built a six-figure portfolio that generates a yearly average of over $1,200 per month in dividend income!

That is passive income that I earn while I sleep. Passive income is the key to financial freedom!

If you are interested in beginning your own journey into dividend growth investing, personal finance, and financial freedom, check out my Getting Started page.

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So, what do you think of this post? Are you ready to ditch the car? What actions are you taking to reduce your transportation expenses?

Let me know in the comments below!