Running with JCT, Part Deux

Ok, take your numbers. So what would the cpm be if you turn in 0 miles for 3 consecutive weeks? It doesn't matter. That's the point! At $300/week, it's going to come out to $15600/year. So it doesn't matter if you turn in 120000 miles in 1 week or spread out over the course of 52. It still comes out to 13 cpm. So that negates that argument.
Next, let's say a driver has an automatic deduction coming out each week, say child support or a garnishment of some sort, or a disbursement to an account of any kind. What happens when you turn in nothing? Essentially that driver is in the hole. Example: $100 garnishment/week. Take 3 weeks off, don't turn in anything for those 3 weeks and not only are you in the $900 in fixed costs, you're in for an additional $300 in other expenses. Now you're trying to make a profit the following week PLUS make an additional $1200. Chances are, it's going to take 2 or 3 additional weeks to get back in the black. So now you've gone 4-6 weeks without bringing home a penny, while still incurring the weekly garnishment putting you even more behind.
As you stated correctly, the variable payment doesn't matter cause it's $xx times 120000 miles per year.
So, I chose to get money each week. That's not a display of "an incredible lack of business acumen." It's ensuring that money flows in each week.
It's a personal choice that doesn't change my bottom line on a per year basis. Never look at a business in a weekly basis, but instead of a quarterly or yearly basis.
I personally don't have garnishments, but if I did, or anyone else for that matter, you would understand the logic in what I'm am trying to convey. I do have a situation with my financial institution involving weekly deposits for 401k and other investments that would really be a hassle if I didn't make the distributions on a weekly basis automatically as opposed to putting a hiccup in my set up.

Bottom line. It doesn't matter if you turn in all your miles at once or spread it out. The business side comes to the same profit per mile. When you factor in outside variables as stated above, it can throw a wrench in things. I like to take time off in chunks at a time. That's not going to change and my method allows me to do that and come back to work without missing a beat.

 

Garnishments and court ordered deductions like child support are easily handled. You can make arrangements to send in a check for example. Btdt. You can voluntarily make your weekly payments higher to cover your downtime. Btdt too.

No twisting of basic math will recover the interest you don't get because your money is in an envelope and not in a bank.

 

True, but like you said earlier, the interest you'll make on a regular bank account is squat. Even a $ 0.50 difference in one month doesn't justify not getting 52 deposits each year. And the only way you're gonna earn an extra $0.50 per month is of your have thousands of dollars in there already at a rate of 1% out more. So for the price of a pack of cigarettes, I chose to do what I do. Remember, you don't have to agree with it. What Matt's is that it works great for me.

 

Hey, if it works for him; then so be it. Everyone runs their business their own way. As long as he is happy and making money, that is what matters.

 

Anyway.... I'll sit here in the AZ sun on a cool morning enjoying the breeze while I eat this huge burrito.

 

A monthly average of $5000 balance earning 1% only equates to $4.17 interest for that month. Maintain that monthly average for 1 year and it comes to $50 interest earned for the year. As balances go up and down throughout the month this will vary. So by holding a few weeks at a time during certain cycles (vacations, time of, etc.) It doesn't translate to $50 per year.

Before I decide to hold a trip out not, I make sure I make enough $$ to distribute to my savings, tax, and retirement accounts. If all those are covered, then I will hold a trip for a few weeks if I have time of coming up soon. The only money I'm not getting is my checking/spending account. As my credit union doesn't pay a dividend on a checking account, I technically am not missing out on potential dividends. So it doesn't matter if I put $100 or $3000 in there at a time.

 

The way I see it, if your particular plan keeps red off the ledgers, you are doing it right.

 

Anyone know of a washout near chelan wa?

 

Where are you loading at???

 

One of these places will be able to lead you in the right direction....

http://www.findtruckservice.com/Semi/Mobile/Truck+Repair/WA/Chelan/