That fateful day has finally come! My trusty bicycle which I bought and started riding exclusively in 2012 has paid for itself and then some. I've been collecting transportation reimbursements for my employers, as well as money I've made using Runkeeper and Pact app, which has now exceeded the cost of the bike plus all of the tools, accessories, and expenses associated with the bike put together.
As of my most recent calculation I'd spend $3038 on bike expenses. I'll list them out here.
| Bike | $1,000.00 |
| Lock | $360.00 |
| Pump | $37.50 |
| Pedals | $20.00 |
| Handle Bar Bag | $126.73 |
| Fenders | $60.64 |
| Lights | $40.00 |
| Breaks | $62.50 |
| Transportation | $10.50 |
| Knog Lights | $100.00 |
| Bike Bag | $162.00 |
| Map Case | $30.00 |
| Break Cleaner | $3.65 |
| Chain Cleaner | $12.00 |
| Brushes | $5.00 |
| Lube | $8.00 |
| Tire | $40.00 |
| Tubes | $50.00 |
| Tire | $36.59 |
| Rack | $60.22 |
| Panniers | $123.68 |
| 10mm bit | $11.00 |
| Torque wrench | $32.00 |
| 5 Plyers set | $19.00 |
| Shifter | $2.00 |
| Brake cables | $10.00 |
| Bike Parking April | $15.00 |
| 3 Month Pass (May-July) | $44.00 |
| Water Bottle | $10.00 |
| Handle Bar Tape | $10.00 |
| Water Bottle Cage | $8.00 |
| Helmet padding | $10.00 |
| Seat Bag | $12.00 |
| 3 Month Pass (Sept-Nov) | $44.00 |
| Tool box | $2.00 |
| Pannier back pack | $36.00 |
| Pannier accessories | $24.00 |
| Shifter cable | $3.20 |
| Shifter cable x 2 | $6.40 |
| Ferrels | $1.60 |
| One month pass (June) | $16.00 |
| 3 Month Pass (Dec-Feb) | $44.00 |
| 3 Month Pass (March-May) | $44.00 |
| Chain | $30.00 |
| Crankset | $100.00 |
| Cog | $30.00 |
| Tires | $65.00 |
| Brake pads | $16.00 |
| 3 Month Pass (Sept-Nov) | $44.00 |
I'd been keeping track of everything in excel, and due to the fact I live in Japan and most of these items were bought in Yen so I've rounded to the nearest dollar figure based on the exchange rate at that time. I tracked everything as accurately as possible, but I might have missed some screws, or a one day parking expense here or there. Still this is pretty close and the simple fact that I've been paid over $3000 dollars to ride my bike is pretty solid evidence that a bike is worth it.
I'll now list out the transportation money I've been paid to take the train but instead rode a bike.
| October Exp | $377.50 |
| Pact app | $120.00 |
| May Exp | $54.00 |
| June Exp | $215.78 |
| Berlitz | $160.00 |
| July Exp | $207.00 |
| August Exp | $140.00 |
| August Exp* | $15.00 |
| September Exp | $18.00 |
| October Exp | $54.00 |
| October Exp* | $60.00 |
| November Exp | $225.00 |
| December Expense | $185.00 |
| January Expense | $120.00 |
| February Expense | $113.60 |
| March Expense | $96.11 |
| April Expense | $174.75 |
| May Expense | $60.00 |
| June Expense | $194.00 |
| July Expense | $198.00 |
| August Expence | $126.00 |
| September Exp | $59.46 |
| October Exp | $120.00 |
Total $3093.20. As you can see I've exceeded what I've paid for the bike by $54.99! That's right, now is my bicycle not only free but it's actually put $55 on the table! In addition the $3092.20 I've collected actually exceeds the $3041.94 I've collected in lifetime dividends! You read that right! Living in Japan and riding a bike has actually paid me more than an approximately $75,000 portfolio!
That to me is really amazing!
I'd also like to point out the Pact app amount of $120. This is real money that I've been paid to track my bicycle activities using Runkeeper and then collecting money through Pact app. This averages to about a dollar a week. You might think that's not very much but think about it like this: KO currently pays out 2.85 percent. If you put $1000 into KO you'd get $28.50 back per year. It would take more than $2000 invested in KO to pay out the same kind of money. Just by riding my bike I'm able to displace $2000 in needed investment capital. If you still don't think that's very much I'll give you my paypal address and please send me $2000+, because clearly you're bad with money!
One last thing I'd like to point out is that I haven't included the "opportunity savings" of not owning a car. I would never own a car in Japan as they are just too expensive to drive, service, and store. But imagine how much my bike would have saved in if I'd included the money kept by not owning a car, not paying for gas, insurance, maintenance, parking, storage... You get my point.
I'm sure one day my dividend income will certainly take over and the money I've received from biking. But if you want to add some nitrous oxide to the gas tank while driving down the road to financial independence then might I suggest you get a bike. I can think of no quicker way then a bicycle to take down one of the big three, freeing up capital to invest and lowering your expenses permanently super charging your way to early retirement.
Let's see what another two years brings.
That's a pretty expensive bike. On another note, do you plan to update your stock portfolio listings. I always enjoy seeing other dividend income portfolios in action.
ReplyDeleteHi DivHut,
DeleteYou're right, it wasn't cheap, but I was also looking for a purchase that wouldn't allow me to ignore the commitment I was making. If I dropped $200 on a used bike and things started to go wrong I felt I might have an excuse to quit. But with this purchase and knowing that everything done to the bike would be my doing it would be hard to walk away from. However, knowing what I know now, I would buy a used bike. In the end it was the change in lifestyle that I was aiming for.
I have been thinking of updating my portfolio but at the same time I'm paranoid. Don't you ever get worried about others hacking your account and taking your money? What measures do you take to prevent this?
Great decision on owning and riding a bike. I use mine all the weekends but, in the week, I really need a car... :( Cheers!
ReplyDeleteHi Trader,
DeleteThanks for stopping by and commenting. Choosing to bike was one of the best choices and I plan on making future life style decisions around biking. I also own a car in the USA and if or when I choose to move back I'm sure I'll use my car but I'd like to do it sparingly.
Have a good one!