The quick story: I was married when I started trucking. Not now. Anyways, yes, trying to cut expenses at home can definitely help. And if you're solo, unmarried/in a relationship, it would probably be best to claim residence at a relative's house and cut off living expenses almost entirely (phone and food). Save up some cash and get yourself into position before plunking down money for accommodations.
just make sure you paying relatives something for room and board was told way back so not sure of the law but those who just live in trucks cannot claim daily per-dime of xx a day without a place that one is paying bills at not sure of percentage one has to pay but could get you snagged up by irs in an audit.........any truth to this or is someone just blowing smoke up my bum?
Not an OO yet but I've been saving 5cent a mile per paid mile every week toward a truck maintenance fund as a company driver. I have enough for a truck from my military tours but want to start about 30-35k in the bank the day my trucks loaded the first time. Discipline helps even the short weeks I go home I still deduct that 5 cents. Not having a lot of bills help too, my biggest bill is $1600 a month toward retirement and that's manageable. Not trying to rush being an OO
In '07, I went to the local Int'l dealer to look/see what they had. I drove off the lot in a brand new Eagle Cat/13 speed for $1970, which was my first month's payment. Technically, it was a lease, but with a $1 dollar buyout at the end and I owned it. (60 mo). I needed premium credit which I had 850 FICO. Then First month for insurance/2290, I think I was rolling with $3000 out of pocket. Monthly payment is much better than weekly, because, monthly=48 weeks VS 52 weeks making weekly payments. As mentioned above, lose the home expenses, be single and manage your money well. Mortgage, wife, kids, car payment .ouch.
As for cuting home expenses,my place is total electric. So turn off all breakers except heat pump. Will cut bill by 25% or more. Search for electric vampires,you would be surprised what TVs,phones,etc. use when not in use.
I did this with a pickup truck for another business back in approx '93. Not sure how the IRS views it but Revenue Canada has a maximum monthly lease payment that they will allow you to deduct. Also, if your residual value (buy back amount) is below a certain level, they can rule that the transaction wasn't a lease at all, but it was a purchase, which changes your tax liability completely.
Max out your 401k & IRA contributions. You'll save an extra 20-30% just from the taxes you will be deferring. When you're ready to start your business, you can roll them over into it without a tax penalty (when done correctly). That's $23,000/year right there, probably more if invested wisely. On top of that, use a spreadsheet, quicken, mint, whatever to keep track of everything you spend. You will then probably see multiple areas where you're spending $25/week on things you wouldn't pay $1,000/year for. Pay off all debt financed at over 5%. If you still have problems reigning in your spending, give yourself a weekly allowance in cash and don't exceed it.
