Over the years I keep reading about all of the above and many other formulas for achieving efficiency operating your unit. I always took a more simplistic, yet pragmatic view of my overall "stay out of trouble and keep the cash flow flowing" approach. I'm not a fleet owner, so my methods are for one unit with me operating it. I hate ledgers and spread sheets. I'm getting ready to hang up my driving gloves soon. I'm no guru, but I hope this helps someone out there.
Allow me to expound: Let's say I go out and buy a truck for $25,000. I always paid cash. I never considered I had made a profit until that $25,000 was back in my bank account. It could take some months to accomplish that, as the revenue you generate has to be used for all of the expenses you incur on the road. For sake of argument, let's say I had that $25,000 in my account in 6 months,after paying all costs with being on the road for that period of time. I ran as hard as I could till the truck was paid. My very next check I began a 'look to the future fund". I put away 15% of each and every paycheck and didn't touch it until I needed it for my larger expenses, like tires and repairs, and the cash I would need when I traded in my old truck to buy a newer truck. The new truck purchase could take anywhere from 2-4 years. I never bought a new truck. I always found one used, in great shape, for cash.
To control expenses on the road, I watched where and what I bought, like fuel. If I was loading 200 gallon, and station A was 10 cents cheaper per gallon than station B, I bought at station A. Do the math, 10 cents cheaper on 200 gallon saved me $20, by watching where I bought fuel. That's two meals right there, and I bought fuel about every other day on average. When i was driving TT, it was everyday. I liked to stay in motels whenever time allowed, so I have every motel discount card there is. A truck at idle burns about a gallon per hour. Again, do the math. I never had any fuel cards, or the like, but I did have credit cards, that I always paid in full every month when I used them, which was infrequent. My checks were sent direct deposit to my bank, and I went to the ATM to get the cash. Cash is king, no carrying costs except for the negligent ATM charge. I drew the max, and rarely had to make a draw more than three times a month. When home or near a branch bank, I wrote myself a check for a month. I treated myself good on the road. Never played the slots at truckstops, or video games.(I saw guys all the time blowing substantial money on those diversions).
In short, I guess it's all common sense. Watch where you spend and what you spend on. Do good preventative maintenance. Pretty soon that "future fund" will add up. The 85% you keep from your checks goes to your family life. You should be able to cover all contingencies, and have money in the bank. In my case, when I had a little pile saved, I'd buy some land, or something that would appreciate over time, so that when the kids were gone, my wife and I would have a nest egg to go into retirement with. When I wanted more money, I just stayed out longer and took those extra loads.
One final note. Taxes. I read in a book one time, that "a politicians job is to get his hands on other peoples money". Your job is to keep him from doing that. Pay attention to beating the tax man. It's your right, and there are lots of ways. It's not complicated nor difficult. What I've outlined in my simplistic approach takes a little self discipline, but you do that anyway getting the load delivered on time, so you know what it is.
Allow me to expound: Let's say I go out and buy a truck for $25,000. I always paid cash. I never considered I had made a profit until that $25,000 was back in my bank account. It could take some months to accomplish that, as the revenue you generate has to be used for all of the expenses you incur on the road. For sake of argument, let's say I had that $25,000 in my account in 6 months,after paying all costs with being on the road for that period of time. I ran as hard as I could till the truck was paid. My very next check I began a 'look to the future fund". I put away 15% of each and every paycheck and didn't touch it until I needed it for my larger expenses, like tires and repairs, and the cash I would need when I traded in my old truck to buy a newer truck. The new truck purchase could take anywhere from 2-4 years. I never bought a new truck. I always found one used, in great shape, for cash.
To control expenses on the road, I watched where and what I bought, like fuel. If I was loading 200 gallon, and station A was 10 cents cheaper per gallon than station B, I bought at station A. Do the math, 10 cents cheaper on 200 gallon saved me $20, by watching where I bought fuel. That's two meals right there, and I bought fuel about every other day on average. When i was driving TT, it was everyday. I liked to stay in motels whenever time allowed, so I have every motel discount card there is. A truck at idle burns about a gallon per hour. Again, do the math. I never had any fuel cards, or the like, but I did have credit cards, that I always paid in full every month when I used them, which was infrequent. My checks were sent direct deposit to my bank, and I went to the ATM to get the cash. Cash is king, no carrying costs except for the negligent ATM charge. I drew the max, and rarely had to make a draw more than three times a month. When home or near a branch bank, I wrote myself a check for a month. I treated myself good on the road. Never played the slots at truckstops, or video games.(I saw guys all the time blowing substantial money on those diversions).
In short, I guess it's all common sense. Watch where you spend and what you spend on. Do good preventative maintenance. Pretty soon that "future fund" will add up. The 85% you keep from your checks goes to your family life. You should be able to cover all contingencies, and have money in the bank. In my case, when I had a little pile saved, I'd buy some land, or something that would appreciate over time, so that when the kids were gone, my wife and I would have a nest egg to go into retirement with. When I wanted more money, I just stayed out longer and took those extra loads.
One final note. Taxes. I read in a book one time, that "a politicians job is to get his hands on other peoples money". Your job is to keep him from doing that. Pay attention to beating the tax man. It's your right, and there are lots of ways. It's not complicated nor difficult. What I've outlined in my simplistic approach takes a little self discipline, but you do that anyway getting the load delivered on time, so you know what it is.