There are many perks to working as an independent truck driver. You can be your own boss and pick your own hours, you can enjoy a career that allows you to be out and exploring each day, and there is an abundance of work available due to a shortage of drivers. Working as an independent truck driver also has its challenges, though, and managing your finances is one of these. Due to the nature of the work, your income can vary each month, making it hard to manage. With this in mind, here are a few financial tips that should come in handy.
Create An Emergency Fund
First, you should make sure that you have an emergency fund to cover your expenses for at least 3 months. This ensures that you will not run into financial trouble if there is an emergency, such as work drying up, you have to buy a new truck, or you cannot work for one reason or another. Having an emergency fund can also provide peace of mind for any independent worker.
Keep Costs Down
Following this, it is important to find ways to make savings so that you can maximize your bottom line. There are several effective ways to keep costs down as a truck driver, such as:
- Driving a fuel-efficient vehicle
- Using loyalty cards
- Choosing the most efficient routes
- Bringing food from home
- Shopping around for insurance
- Finding free places to park
Another smart way to keep costs down is by comparing finance deals when replacing your vehicle. It’s no secret that funding a new vehicle is expensive, so you want to make sure you’re getting the best deal. Going to a reputable company such as Auto Finance Online and getting a quote there can give you a clear picture of how much you can borrow and what the monthly repayments will look like so you can keep costs down and work them into your budget.
Take On Hot Shot Trucking Jobs
In addition to keeping costs down, you also want to find ways to maximise your income. One of the best ways to do this is with hot shot trucking jobs. Essentially, this is shipping work that is time-sensitive, which offers better rates. You can use load boards like Shiply to browse available hot shot trucking jobs, which can make it easy to find ongoing work. Of course, it is important that you are always able to make the delivery on time, so you will need to carefully consider whether to take on a job or not.
It is also important for an independent truck driver (or any independent professional) to separate their business and personal finances. Financial management and tax planning can be tricky when your finances are not separate, plus you do not want to start using one for the other as this can negatively impact your personal and professional life.
Create A Budget
It is important to control your spending as an independent truck driver, so you need to create a budget to stick to each month. While monthly costs can vary, you need to track your costs, which are likely to include:
This should then prevent you from overspending and help you to find ways to make savings each month.
These financial tips should prove to be useful for an independent truck driver. Smart financial management is key to success as an independent truck driver, and this post’s advice should help you improve your bottom line.