Setting Aside Emergency Fund in Truck Leasing
If you want to work independently as a truck driver, but do not have enough cash to buy a truck, you can consider the option of truck leasing. Many companies offer lease purchase trucking programs with which you can start your career as your own boss. This way, you can make a cost-effective start.
In order to be a successful trucker, it is recommended to have emergency cash fund to meet unforeseen situations. Most successful independent truck drivers have 3 to 6 months of after tax cash for emergencies such as unexpected major expenditure.
Here are some emergency fund guidelines that you can consider before going for truck leasing:
According to a recent survey of a truck magazine, nearly 60% truckers who take help of lease purchase trucking programs set aside an emergency fund of $11,500 in average. Among those who have accumulated such a fund, about 65% felt comfortable with a fund closer to $14,000. As per top recommendations, the emergency fund should equal to about 33% of the operating income (revenue – expenses = operating income). Saving for unexpected situations requires detailed record-keeping and unwavering discipline. Here, two important points need to be considered. First, discipline yourself to maintain a as close to possible a 3-6 month emergency cash fund with all of your operating expenses. Second, pay for any unforeseen situations with cash that has been earning interest fro you instead of paying with cash for which you would pay someone else. If it is not possible to set aside enough cash for your operating costs, be prepared to accept the risk reward ratio as God’s blessing and a thoughtful prayer support group. This will surely help you to come out of your bad times and aid you in starting afresh.
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