How to save?

Study the system in depth, it's still possible to start cheap provided one has the skills and a determination to do what it takes. We're starting with only a few thousand to get going. And been working on it for 6 months. And I think we're ready to haul our first load this week. However we already had a truck just big enough to get started, an F350, and obtaining a 3 car wedge trailer from a friend. (otherwise I was going to use my old farm tractor for a down payment on one) And I'm a halfway decent home mechanic. We had some resources we could cash in on, (which are just about used up) I did get a bit ahead of things when I came across a very nice looking chevy 4x4 crew cab on craigs with dead engine, so I sold/sacrificed a project that I hadn't intended to sell to obtain it. It will be our second truck as soon as I can get an engine/transmission for it. (I plan on putting a cummins and NV4500 in it, most reliable combination I can find with best fuel economy)
A neighbor has an old semi he wants $3000 for, that'll probably be our 3rd truck, although it'll need at least $20,000 put into it before it'll be road worthy. But with that input will make it mechanically like new. As usual I will do all the work on it so parts cost is all there'll be.
Also it would be necessary to plan on living very cheap for awhile, once we get started we'll run very carefully and build up an operating fund as fast as possible. I don't like credit.

 

I was a lease-then-purchase guy. Got suckered in, and as Pound Puppy states, I don't recommend it for anyone. But, once you're in you're in. And you just hope to survive until you're done. So, owning a tractor outright was a little easier. But, driving for a big carrier, even with my own truck, the money wasn't rolling in. I bought a used, beat up, reefer trailer for $12,000. Paid $2,000 down and financed the rest. Started out with $7,000 more available. Did quickpays mostly at first, but did let a few loads ride. Stayed mostly close to home the first year. That old trailer really did eat up some revenue. Spent $6,000 on it in the first six months (huge mistake, again). However, when the next big repair came up, and I was staring at another $3,000, I decided to look into swallowing the cost and just buy new. My bank loaned me $57,000 with $0 downpayment for a 2013 Utility with a brand new Carrier reefer unit. So, For a few months, I was still paying for the old trailer ($430/mo) and the new trailer ($800/mo). Once I paid it down enough, I paid it off with one lump sum, and then sold it to a friend for scrap/salvage).

In the end, it cost me quite a bit. However, it got me into the game for only $2k down and the repairs. I got my second trailer for $0 down, and my bank absolutely LOVES me because of the revenue/consistency. I then got a Line of Credit and basically cut out quick-pays, except for one broker who charges 2% for same-day pay (and their usual pay takes about 45-50 days if you count processing, mailing the check, receiving the check, getting a chance to cash it).

Try to save up as much as you can.

 

I saved up about $80,000 over the course of a 4 year period from 2002-2006 on a $50K annual income. It can be done. Trim some fat out of that homefront budget and work weekends if work is available. You have to sacrifice to get ahead.

 

Work work work.
Save save save.

I'm planning on using an equity line on a rental for some of the startup.

No risk, no reward.

 

Years of hard knocks knowledge posted above.

 

Look at small business centers , they are a great resource . Free classes all the time through the community college system. A lot of good free info

 

Don't forget about the money req'd for repairs. I think every used truck we ever bought we spend at least $10,000 in the first year of owning it. One in particular that I remember (M11 Cummins) we spent $13,000 in the first year because it kept blowing head gaskets. Another one (C15 Acert) we spent $13,000 that is one repair.... not rebuild. Don't be that guy that goes broke becasue he couldn't fix his truck.

 

I lived in the truck for 2 years and saved 40K. You have to live within your means and put your mind to it.

Think about it if you only made $30K a year you will build a budget around it and survive. So anything you make above that you should be able to bank. If you get accustomed to every raise in income you'll never save money. Oh now I can afford this and this and that! NO!! Forget them ideas.

Rework your budget and get rid of all the unnecessaries (word?).

A person in business has to learn how to manage money or they will fail. This is your test to see if you will succeed or not in business. Work on your credit and get a couple credit cards. Make small purchases that you can pay back in full each month. Take out a small loan and stick that money in the bank. Use it to make payments for six months then pay the loan off. In other words play with other's money to build good credit instead of buying stuff.

In the mean time save, save, save!

 

A few that haven't been mentioned yet is looking at cutting your house expenses. Is cable necessary when you are gone most of the time. Drop the temperature in the house by a few degrees to reduce heating costs. If you have the right place look at getting a roommate. If you are gone for the week he will enjoy the extra space and you may be able to get a premium rental rate. If you smoke, quit or at least cut back. Your body won't mind nor will your wallet. Going to the bar or restaurants when you are at home.