Survival of the fittest in trucking

By Lina Demedeiros

Well, we all know that 2008 has been a rough year for transportation with the rising cost of fuel. However, survival in this business has been something that many of you have been pondering about. So here are some valuable tips on survival in trucking.

Retention of Income: Retain a minimum of 65% to 75% of your pay to address your personal expenses. Managing money in any business is the toughest thing to do. We all want to take advantage when we have extra income. However, incidental maintenance, repairs and other expenses seem to take precedent over others making it difficult to focus on the core needs. So if it renders little profit, think twice before you drive.

Debt Consolidation The #1 problem that puts Owner Operators out of business is debt. Focusing on payments to be made and not the source of the pain “interest” is the real killer. Majority of you will find this on short term debt such as credit cards and leases that make it absolutely impossible to retain a good income to survive. We highly recommend that if you are currently financed to beyond 75% of your take home pay, you should take the time to address this immediately. Debt Consolidation could help you not only reduce this debt load but help you in the future from staying away from high interest ventures that deplete your take home pay.

Our office works with a Debt Consolidation specialist who will work to find a solution for you. If you are finding it hard to make ends meet, you should seek counsel immediately. Managing money is the toughest because we try to prioritize and rationalize expenses that may or may not be deemed as necessary.

Prioritizing Expenses; It’s no secret, in times of financial disaster that the majority of people look at insurance as an unneeded expense. Your plan to minimize debt should always include this expense. The absence of social programs to respond to injury, illness and disease whether or not job related makes this a priority for every Canadian. Transportation is deemed to be high risk, irrespective if you are a dry van or flat bed hauler. The government has made it very clear to all that it is our own responsibility as business owners to ensure we have something to fall back on in the event of disability. Loss of Income coverage is a tax free benefit when utilizing your net taxable earnings to pay this benefit. Business Overhead Expense reimbursement may be taxable upon receipt of the benefit. Your extended health & dental benefit may be a taxable benefit since you deduct the expense. Our mere survival is always a priority, however, never kid yourself, in the face of adversity because everything you have ever worked for can be lost when you are unable to work and earn a living.

For more information on how we can make, protect and save your money visit us today at www.lmdfinancial.com

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