Some numbers for new O/O

700 a month for insurance? Man i sure hope that includes full liability and cargo.

Everyone does things different but if my fixed expenses were 10k a month id be crying tears. It takes a whole lot of trucking to cover 10k fixed costs. Man that's 120k a year before fuel and maintenance.


I'm at the complete opposite side of the spectrum. My monthly fixed costs on my truck are 25$ for unladen/non trucking ins. Physical damage on truck and trailer is just under 100$. That's it. Add in 550 for the 2290 every year and 2150 for plates and permits and you could break them down into a monthly cost but i just run an extra load or two in February to cover the registration and a short one in June for the 2290.

The household stuff "weekly pay check" is covered by paying myself 40% of every load and keeping the family on a rather strict budget. Everything gets broken down into different categories and gets a number that is strictly adhered to no matter what. our biggest expense is groceries. Healthy eating is expensive. Fresh veggies and fruit alone is a couple hundred a month. 1200 a month goes to groceries, 150 goes to household cleaning supplies. Etc etc. What ever is left from the 40% paycheck goes into savings and doesn't get spent on "oh shiny i want it" impulse purchases.

 

This is where running your household on a strict budget comes in handy. When every dollar has a purpose and is earmarked to its purpose you find out that you spend a LOT less.

 

Money you chose not to earn is no different from money you spent.

The basic mechanics of why you do not have the money in your bank account are different, sure, but in the end, money you chose not to earn and money you spent are both not in your bank account.

The term for that sort of calculation is 'real cost.'

 

. I guess I worded something wrong or You read it differently than intended, But
Yes that includes everything, actual cost is $760 per mo. I guess what I call Truck costs are actually what it costs Me to be an Owner Operator. That includes pay and health ins. Bottom line is fixed costs including my Draw or Salary, has to be met. If no income comes in, then fixed costs including Salary has to come from somewhere. Savings, for instance, if you gross $4000 a week and paid yourself 40% or $1600.00, you would need to save $290.00 a week in order to continue paying yourself $1310.00 a week for 2 months plus cover fixed costs. So instead of making $1600.00per week, actual Income is $1310.00 per week. Roughly speaking.No my fixed costs aren’t $120 k. They’re closer to yours I’m sure. Plate $1450 UCR $76? Add fuel taxes , kyu average $1200 per year on quarterly$100 per yr drug / alcohol Consortium, and $120 to Arkansas extortion tax.

 

Nevermind...

 

I need a $1,000 a week after fuel to cover the truck and household costs with paid for equipment and minimal debt burden. Which is easy to do in the worst of times. A missed week here and there is not so bad but after a couple or more weeks off that lost revenue is missed and you can never get it back. Somebody said on here work hard and bank it when times are good and continue to grind it out when they're bad. I agree with that sentiment regardless if you have equipment payments or not. I used to park for long periods when it was bad but it really burns the cash when you do that. And you never get that missed opportunity back, it's gone and it adds up quickly.

 

You mentioned the Arkansas extortion tax, I haven't gotten anything from them in several years. I used to get the ad valourem tax crap in the mail years ago, I thought maybe they did away with that.

 

Nope,llt did away with theirs about 12 yrs ago, but Ar. Still has it. Just paid it 3-15. $120 for combined equipment value of 26 k. I think I had less than 2000 miles. Must be their minimum amount, always the same

 

Ky did away with theirs

 

Thanks, Maybe I need to look into it, I haven't thought anything about it in several years until I read your post. I very seldom go to or pass thru there, maybe that is why they haven't sent me anything.