We are already seeing some reduced living (fixed) costs because of our new situation:
- Auto Insurance - We informed our insurance broker of the fact that my wife is now off work, so she will not be commuting her usual 25km each way to work. Due to this change our insurance rate for that particular vehicle was dropped 17%, or $204 per year because the car is now on the policy as not travelling to work each day, which requires many less kilometers of insurance. This reduction in our fixed expenses would be roughly the equivalent of me getting a raise in employment income of about $300 per year before tax.
- Auto Fuel - While my wife was employed, our combined monthly gasoline bill was coming in at about $250 - $300. Now that she is on maternity leave, I am expecting the same bill to come in much closer to $150 per month. This should equate to a savings of about $1,500 after tax dollars per year. For us to bring home the equivalent benefit of this savings in employment income I would probably need a raise of about $2,150 per year before tax.
All told, these two small travel related cost savers are tantamount to me obtaining a raise of $2,450 annually, or $204 / month.