Where I’m investing my money in 2009 – Part 2

My second investment for 2009 is a bit more unusual as I have lent my partner money so that she could buy an annual season ticket for her train journey to work. Despite frequently reminding her that a lack of credit in the market place is driving up the cost of borrowing I have lent her the money interest free as it’s only for a couple of months.

Train operators raise their prices on the 2nd January every year, with the rise in fares being far more punctual than their trains. This year my partner was facing a price hike of 6%, but by buying her ticket a few days before the increase she was able to save herself this additional cost. 

An annual season ticket also works out cheaper for her as it’s discounted slightly compared to buying monthly season tickets, although this saving is generally eroded when you consider the cost of capital and potential savings whilst you might be holiday. That said she is still better off not having to pay the increased prices.

So what’s in it for me? Well one of the benefits of her season ticket is that she gets 1/3 off rail travel for both her and up to 3 other passengers travelling with her. And as we travel into London by train quite frequently this should help me save a few pounds over the year.