Aspiring Independant Owner Operator

I'm not going to encourage or discourage your enthusiasm. But in your $49000.00 figure... Did you factor in your Federal & local taxes? Money that you'd never see!

Spend $10 a day in food? You must be eating peanut butter & jelly sandwiches. Any decent meal at a truck stop will cost more then $10.

Just because the economy picks up you think that your automatically going to get a raise.... It won't happen!

 

If you save $5k to $7k over a year you should pat yourself on the back, because you've done something really extraordinary.

Better than that though you should put the first $2k into a secured credit card and build a solid year history. Use it for your food and pay it off entirely each month. This will save you big bucks in the short and long run.

 

If you can't accurately figure that out yourself you probably don't have the business & budget skills to be in the trucking business.

 

Most likely you would not have problem with insurance coverage after the first year. After 2 years (and no moving violations) your insurance would be dirt cheap, as an O/O or running under your own authority.

you can get a decent ,recent truck for $30-$40. My research found that the finance companies will want 20% down with credit scores over 700 (used to be 10% and 600 credit score). Like pharm said get a couple of credit cards, charge on them and then pay them off every month. That will improve your credit score. The cards will be high interest so make sure that you pay it off every month.

 

Ntio70, Who is going to pay your taxes and health insurance. OH??? You forgot those little items. Taxes are around 50-60% of your salary/yr. Now argue that with your accountant because, you'll be in the 34% state, 40% Fed, then you pay tax on EVERYTHING you buy at 5-8% and then you have a realistic figure to work from. Food is about $10/meal. Hell, you can't eat at the Golden Arches Supper Club for less than $7. I love your idea but man, you have to be realistic and live. I worked at MCDonnell-Douglas for$100,000.00/ year the last 6 years I was there and put $25000 down on a Pete and bought a trailer and total cost was $192400 spread out over a 4 year period to get the maximum write off allowed. Then my fuel, food clothing, tire chains, and all the other stuff came to a $28000/yr write off on taxes. At the end of 4 years I had paid for 3024 meals on the road and was broke with $28,000 in credit card fuel and tire bills. I ran 3500 revenue miles a week from Baltimore to Seattle and I did'nt mess around in truckstops, I don't gamble and I ran my butt off. Why go into trucking. Sell icecream.

 

I forgot FICA and the Road Use $500/yr.

 

From watching BJ & the Bear. lol

 

Son your 21 things can change at any moment and I am 40 and been doin this owner operator gig since I was 23. Save your money and forget about a truck because their is no money in it anymore I am stuck with the one I have and can't get out with out loosing a bunch of money. Save your money like you plan to and invest it and take a nice vacation each year to some exoctic place. You may meet a sweet girl tomorrow, fall in love and be married by Christmas. If anyone out their buys a truck during these times all your doing is buying a job with headaches. I grew up in this buisness and was told when I was your age don't ever buy a truck, but I was a no it all 23 yr old kid that new more then the old guys and had everything on paper, I was going to be a million air in the next ten years. Well guess what it is 17 years later and I am still broke. I guess I still have a love for it and like to truck where I want to truck.

I am not being mean but if you spend a $110,000 cash on a new truck you have to be the dumbest person on earth.

 

Though I'd sooner recommend buying a truck than getting married by the end of the year to someone you just met!

 

end of the year is alot better then the next day. lol