Though trucking may be lucrative, money mismanagement can empty any trucker’s pockets and prevent them from getting ahead financially. The team at Financial Fuel Services has developed a to-do list of personal finance steps that can help truckers save money, plan for the future, and provide for themselves and their families. Read on to learn more.
1.) Set a budget–and focus on what you are spending for food.
Unless you have a per diem, and sometimes even when you do, food is the item most likely to blow your budget. Truck stop food can add up to $50 to $80 per day; restaurant bills can be anywhere from $25 to $100 or more. That’s tens of thousands of dollars per year.
How can you avoid it? Invest in getting a microwave and a small refrigerator for your truck, then purchase groceries and pre-made meals from a supermarket.
2.) Create an emergency fund.
Rainy days are going to happen. Hot water heaters go bust, brakes get worn down, spouses lose jobs. When those difficult times occur, do you have enough easily accessible money to keep paying your bills?
Financial advisors often suggest creating an emergency fund with three to six months worth of expenses and putting it into a high-yield savings account. That amount of savings can feel daunting. Start small, such as $20 a month, and focus on getting to $1000 first. Add your tax refunds and year-end bonuses to your budding emergency fund.
3.) Start and contribute to a retirement account.
If your trucking company allows you to enroll in a 401(k), then sign up as soon as you’re eligible. The average annual return for a 401(k) is between 5 percent and 8 percent. Make sure you are maximizing your company’s 401(k); for example, contribute a minimum of 3 percent if they match up to 3 percent. Don’t leave money on the table!
What if your company doesn’t have a 401(k) offering? You can still contribute to your own retirement by starting a Simplified Employee Pension IRA, which is geared toward self-employed people and small business owners. SEP IRAs allow contract and self-employed truckers to control their own accounts. Once you’ve created the account, you do not need to contribute every year.
Compared to 401(k)s and Roth IRAs, SEP IRAs have really high annual contribution limits. In 2025, the contribution limit will be $70,000.
4.) Get good health insurance and disability insurance.
Truckers experience physical ailments, such as back problems, and mental health struggles. Without low deductible, low out-of-pocket health insurance, the co-pays and medical bills can spell major financial damage. It’s important to have health insurance that follows you out of state, too.
When you sign up for health insurance, it’s critical to also sign up for disability insurance. In the event that an accident of some kind causes you to miss work, disability insurance can pay you up to 70 percent of your salary.
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