Making Your Money Work for You:
Money management is a skill that you have to develop over time by exploring new ideas and embracing the practice of self-reflection. Truckers have the potential to make a lot of hard-earned cash during their careers, but what they decide to do with their money will ultimately play a large role in the success or failure of their businesses. Our goal at Truck Mart is to help you become a successful owner-operator and here are just a few money management tips to consider.
Save, Save, and Save Some More!
You should be setting aside at least 10% of your gross income into a separate savings each week for truck maintenance. It is not a matter of if your truck will need work done to it, but rather, when. Don’t let an expensive repair bill decimate your business. Going further with that idea, start setting aside money for a new truck as soon as possible. Understand that the day will come when you need to replace your equipment. The more that you save now, the less you will have to get financed in the future. Who knows, if you start early enough, you may even be able to buy a truck with cash someday. Every good business owner knows that they have to invest money back into their business in order to get the most out of it and trucking is no different.
Pay Your Bills…On Time!
Whenever you get something financed, you are promising to pay that money back in full. A bad pay week does not make you excused from making a payment, so plan ahead! We suggest taking your monthly payment amounts and dividing them by four so that you know what you absolutely must save each week. Don’t waste your money paying unnecessary service and late fees. Set rules for yourself and start seeing past due payments as being unacceptable. We also recommend setting up automatic payments so that you don’t have to try to remember when and where to mail in your payments. Most importantly, keep in mind that your truck is what makes you money, so don’t risk getting it repossessed because you decided to spend your money on less important things. It is never a bad idea to set aside an emergency fund that covers between three to six months of living expenses. This strategy provides you with a safety net for life’s unforeseeable obstacles.
Lower Your Living Expenses:
The quickest way to lower your monthly expenses is to avoid eating take-out. Not only is it expensive but it really can take a toll on your body if done in excess. Instead, plan ahead and have healthy food options in your truck to make meals out of. Stopping at a grocery store will allow you to eat more for much less. Investing in a small in-cab fridge will help keep food fresh and small crock pots or electric grills can be used to prepare hot meals while on the road.
It is also important to try and figure out where you spend money unnecessarily. Learn to differentiate needs from wants. If you are paying for internet and cable in a house that you hardly ever stay at, consider cancelling such services. Housing needs will differ from person to person but think about ways that you can lower this expense. Some possible ideas could involve having a roommate, purchasing a smaller home, or living with relatives.
Lastly, it’s easy to spend a lot of money on entertainment while on the road. Consider signing up for a library card; they’re free! Many libraries offer a plethora of online audio-books and Cd’s that you can enjoy on the go.
Maintain a monthly log of all expenses in order to see where your money goes. Doing this will enable you to spot areas where improvement is needed. Great money management requires discipline and you are going to have to set specific financial goals for yourself in order to be successful. No matter what your current situation looks like, there is always room for improvement.
Thanks for reading!
Truck Mart LLC
WHERE THE DREAM COMES ALIVE!
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