Winter and emergency fund for l/o

$139,000 should get you through the winter and any maintenence issues.  I know some of you will get what that number is.

Ok, so now to be serious since no one else has tried to answer this yet. The generic answer is take the number of weeks you plan on being down for during the winter months and multiply that by your total fixed costs per week. For example, let's say you plan on taking 5 weeks off this winter. You'll need to 5 weeks of lease payments, insurance, accounting fees, fuel card fees, all of your fixed business costs per week, plus all of your personal living expenses, rent/ mortgage, utilities, food, insurance, car, fuel for car, entertainment money, and if you're traveling the cost of that trip. Figure out what that number is and then add an extra 15-20% to that number.

Here is why you probably haven't gotten an answer to your post. What you are asking requires a lot of pre-planning, focus, and dedication. Most lease ops live paycheck to paycheck and are lucky if they put away $5,000 in savings let alone $15-20,000 fir what you're asking about. There are some here that do that but it's rare.

I try and take about 8-10 weeks off a year and that means I need to have saved up alomst $20,000 to do that. So if you do the math that means I need to save $500 for 42 weeks to reach that goal.

This doesn't include what I save for maintenence either. I like to keep around $7-10,000 for my maintenence account. That will cover most anything with a new truck under warranty and tires as well. It also serves as your deductible for insurance if you get into an accident.

Going into the lease program with little to no money is very risky. You are rolling the dice to see if you'll be lucky. My first 4 hours out I had to get a drive tire replaced and that cost $1200. Two weeks later I had to get a second drive tire replaced, that one was a little less since it wasn't an after hours call, $900. Prime floated that in my tire fund until it was paid off, but that means instead of building up that fund for regular tire replacement I was paying off 2 tires each week. I eventually just cut prime a check to pay off that balance and upped how much I contribute each week to try and catch up for when it's time to replace the tires.

I have so much more I could say about this, but remember, this is a business and must be treated as such. Do look at this as a huge paycheck each week because you'll end up in big trouble or broke down the road.

Good luck!

 

I paid myself on a salary , my settlement went into a business account. Sit down figure up what your bills are add a little extra for spending money and make that your monthly salary everything else stays in the business account

 

I put zero in prime emergency fund... What????? Put yIour money in the bank, savings or whatever and hold it yourself... If you run into a problem, in the hole, maint, etc., I bet your FM will get you out of the hole very quickly...

 

You won't be stopping for winter. Ha! Make sure you tell winter about that. I'm sure he'll get a chuckle as well.

 

As company Driver, we tried minimum savings 10K on hand. Accessible via a phone call via Navy Federal since Ex was a Vet. From anywhere in the USA and Canada at any time. No cash in our truck or our persons.

We have proven it's strength when the Towers fell on 9-11 destroying the company third party payroll issuer employees in one of the towers causing us and our entire fleet to be stopped for those who don't have cash to keep going. We were a team running for McKesson hauling excess of one million dollar value in scheduled II and III narcotics out of Memphis. The 12K we had on hand carried us through the 6 weeks it took to keep going until the Company Bosses write and sign a new contract with another payroll company and we got caught up more or less what was owed.

They #### near stopped a few dozen trucks when they killed the people inside the towers. But the flaws were they did not kill the fuel account, trailer accounts, McKesson billing, facility etc etc etc. NYAH. *Rashberry against idiot terrorists.

Also running local and being sent to unemployment at a little more than half pay during Oct 15 through March 1 to rest, stay fit, eat well and get well by going to doctors to fix the wear and tear, burns and so on from throwing and paving blacktop.

Part of my family used to RESENT me staying home on a Employer Supported unemployment wages for 5 months of the coldest time of the year. And how they did resent me. They don't understand the nature of the business.

That was the beginning of the idea I should discard Maryland as a home and emigrate to a free state and establish my own life in peace away from the drama and all the ####e that is sometimes heaped on me by family. And you wonder why Truckers are lonely sometimes. It's stupid and needless.

Anyway, that is my situation as a company driver.

In O/O with the same plan, the numbers will be larger but doeable.

 

I wouldn't assume that, but I took off the week of the 4th. I worked the previous holidays and yes it can be slow, besides Christmas of course. Some shippers and receivers go home for holidays and holiday crews are pissed to be working so they take their time.

Four weeks left till my year review and I'm having to decide to stay and save for my own truck, or get out of OTR entirely. I only came to get my CDL and honor my contract, not smell piss for the rest of my life. But to actually live a life. You can't live a life behind a steering wheel 11hrs a day, 7 days a week. Also, reefer blows chunks. I was talking to a O/O parking lot driver making $6/mile , average $3. He pulled for a car hauler learning securement, then bought his own truck, leased a trailer, to trade up. Why can't any of us do that? We can, and I'll have to try. Having a "fleet manager" with an attitude or no attitude but with no power over your load assignments, also blows. I need to cut this middle man out. You can take risk and gain rewards or lose. Or you can keep driving 55 to earn more than $1.30/mile. Prime ain't going anywhere, but life stops for no one. This isn't even the year review I plan on writing.