Fuel for Thought
A Penny Saved Is Two Pence Clear
It’s been a really good year for hauling freight. Rates are up over previous years and there are plenty of options for loads. Of course, this will bring new drivers into the industry. A driver starting out this year has a better chance of being successful than starting out during the recession, but there is just as much potential for the same driver to fail if they believe it will be this way forever. Today a driver can do well, but what about the future.
If you are just entering the trucking industry, you may find that you are getting great rates and plenty of loads, but prepare for the road ahead. Not only are there typically seasonal swings but also cyclical turns in the market for any number of reasons.
The economy will run in cycles and thus so will freight. Supply and demand. Right now people are buying but when that slows, so will the shipping needs. Don’t let the good times now cause you to slack in your earnings. Take off work when you NEED, not when you WANT.
If you are just starting out this year as an owner operator, you may want to consider saving as much as you can, that rainy day will come and you will want to be prepared for it. Sure the rates are great right now and you may have some debts to pay, but be conservative with the “wants” and focus on the “needs”. Only you can determine your wants from your needs, everyone’s will be different. Justifying a want into a need is easy to do, but really try to conserve.
Ben Franklin said “A penny saved is a penny earned”, and saving is a good thing. He also said, which is even better, “ A penny saved is two pence clear”. Well what the heck is two pence? And what did he mean by that?
New trucker #1 takes off work when he should be working, there’s a good chance he will spend some of those hard earned dollars he was making. Nothing wrong with that if he truly can afford it.
Trucker #2 works when he can (and now is a good time to earn all you can), he may keep himself too busy to spend on unneeded things.
“A penny saved is two pence clear”.
Not only did Trucker #1 not add to his bank account, he spent some of what he had.
Trucker #2 added to his bank account without spending any on frivolous things.
If #1 spent $1000 and trucker #2 earned $1000 during the same time period, #2 is “two pence clear” or twice as far ahead of #1.
Consider the future if you want to remain in this business for a long time. Plan ahead. There are plenty of times throughout the year (even a good year like this one) to take well deserved time off and enjoy the fruits of your labor. Planning those breaks to match lulls in the market will serve you best, in regards to your bottom line.
See you down the road,
Greg