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Trucking Industry News – Smart Spending – Part Two Of Two
Saturday, August 21, 2010
posted by 18 Wheeler 12:05 AM
Hello, Fellow Drivers, Yesterday I started a blog on smart spending. Today is Part Two of that blog and it will cover topics about curbing splurges and setting up automatic payments. Enjoy the read and remember to be safe out there!
Curb The Splurge
Positive, definitive goals make it easier to prioritize every time you’re in a checkout line. Smart spending is often just a matter of conscious spending. if you’re making an impulse purchase, stop and question your motives. Is that trip to the mall a misguided attempt to fend off the midweek blahs? If so, envisioning your long-term goals at the moment may stop you from shopping. Taking a moment to examine your motives not only saves you money, but also prevents buyer’s remorse that often kicks in once you realize you’ve spent unwisely. To paraphrase a shrewd old saying, giving up something of lesser importance for something of greater importance is not a sacrifice, it’s a bargain.
Even more gratifying than curbing your luzuries is cutting your family’s existing expenses by 10 percent. You can often reduce your cell phone or cable bill with just a few quick phone calls or mouse clicks. Switch to more energy-efficient appliances or a programmable thermostat to lower your utility bill. A little creative thinking can help you reach your goals even faster.
Put It On Autopilot
Make it as easy as possible to follow through on your good intentions by setting up automatic payments. Boost your retirement savings by signing up for a higher contribution rate on your 401(k). This year you can invest a maximum of $16,500 if you’re under 50 years old and $22,000 if you’re at least 50.
You can also set up automatic montlhy deposits into your Individual Retirement Arrangement (IRA). The 2010 annual limit is $5,000 if you’re under 50 ($6,000 if you’re older). If your goal is to plump your emergency savings, arrange a monthly transfer from your checking account into your savings. Want to pare down a high credit card balance? Set up an automatic monthly payment so you can keep chipping away at it without work or worry. Automatic bill payments will also save you money wasted on late fees and interest rates. It’s just one more way that a little time spent planning now can pay off quickly in savings without much effort or stress at all.
While saving money, your state of mind should be as balanced as the state of your bank account. Embracing the fact that you’re in charge of your financial destiny can make saving feel more like an adventure than a burden.
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Living Sensibly – A Trucking Business Success Story!
Monday, July 12, 2010
posted by 18 Wheeler 12:01 AM
Hello, Fellow Drivers, In many of my blogs I have written about running a trucking business sensibly. This means, paying cash or paying off credit cards every month, living within a budget (actually living below your means if possible) and saving for a “rainy day” (an emergency fund). I found an article in Land Line Magazine that tells a trucking business success story with these very principles practiced. Enjoy the read and remember to be safe out there!
Striking Gold Hauling Gas
Wayne Nagel ordinarily delivers five loads of fuel a day, normally within an hour’s radius of Minneapolis. For this OOIDA member, finding the right niche, choosing the right equipment, and trucking smart have paid off.
As Wayne Nagel pilots his buddy’s Cessna 172SP with his wife, Keri, by his side, he soaks in the Minneapolis countryside and all its beauty. Dotted with water, the area lives up to its “Land of 10,000 Lakes” billing, yet Wayne is able to spot many of the roads and interstates where he logs some 95,000 miles per year transporting fuel to various gas stations and convenience stores.
“You get a different perspective up here than you do from behind the wheel,” Wayne said. “It’s peaceful and relaxing. I love being an owner-operator – having my future in my own hands.”
Back on the ground, the 31-year-old OOIDA member pilots a Kenworth T660 with a 38-inch AeroCab sleeper. Leased to the petroleum division of Wayne Transports for the past four years, Wayne distributes gas, diesel and jet fuel in the greater Minneapolis area and throughout the upper Midwest.
Wayne got his first taste of trucking as a college student. One of his best friends bought a truck and offered Wayne the opportunity to drive it at night.
“I went out and got my CDL as I worked toward my college degree in criminal justice during the day and hauled gravel at night.”
After graduation, he took a job with the city of Elk Point in South Dakota, but after six months, he knew the life of a cop wasn’t for him.
“I knew I wanted to be my own boss,” Wayne said. “I liked to interact with people, have a flexible schedule, and be responsible for my own success. I thought trucking would offer that.”
With a game plan in place, he hired on at Wayne Transports as a company driver.
“I felt this was my stepping-stone to learn more about the industry and to help me become a successful owner-operator.”
When he felt the time was right and he had money saved, he bought a truck and leased on to Wayne Transports, which has a mix of company drivers and owner-operators. After paying off that used truck in just 22 months, he upgraded to a Kenworth T660, purchased through Rihm Kenworth in St. Paul.
“I wanted a new truck that was great looking, but also aerodynamic for better fuel economy,” says Wayne. “When I went into the dealership, I was there just to look, but when I walked out I was sold. I knew the T660 was what I wanted.”
Wayne says he got a good price on his trade-in, so in April 2009 he ordered a new KW. He spec’d the T660 with a 500-hp Cummins engine, with an Eaton UltraShift 13-speed transmission.
“Those specs give me enough power, plus they will help come trade-in time with higher resale value,” he said.
Wayne had Rihm’s body shop install a 10-inch drop chrome visor, stainless steel kick panels, custom toolboxes and WTI fenders. Inside, Wayne added aftermarket chrome instrument displays and a 30-inch flat screen TV in his bunk.
He entered the Paul K. Young Truck Beauty Contest at this year’s Mid-America Trucking Show and enjoyed the competition, especially the compliments on his truck. Wayne placed second in the division for first time exhibitors, combo class.
“Everyone loved the look of the truck, and Wayne Transports asked me to represent the company by exhibiting at the Minnesota Petroleum Marketing Convention, which was held in April,” he said.
While short hauls get him home at night, Wayne will make the occasional long run to regional airports in the Midwest, hauling aviation fuel.
“Running full, I’ll average about 7 mpg at 65 miles-per-hour, running between 1450 and 1550 rpm. Running empty to Louisville when I went to MATS, I averaged 7.7 mpg.”
One key to better paychecks, he said, is a can-do attitude.
“As an owner-operator, I can pick and choose when and where I haul, but to be truly successful you need to be reliable and a can-do operator for your company. You want them to depend on you,” Wayne said.
“In some cases, that means taking a load you don’t want or working a day when you don’t want to. Over the long run, it’s paid off for me.”
Wayne also sticks to a strict plan on his cash flow and reserves.
“I pay my credit cards off every month, I don’t get overextended, and I keep a rainy day fund for the unexpected,” he says.
This strategy has allowed his wife to be a stay-at-home mom to their three children. It has also provided extra cash to put a down payment on a rental house, which generates additional income.
“We’re doing well,” says Wayne, as he lands the Cessna. “If you work hard and have the right business sense, good things can happen.” LL
Hello, Fellow Drivers, I wanted to take a few moments to talk about getting started in the trucking business. Some of you have commented that now is the best time to get a loan to start a trucking business. While there is nothing wrong with borrowing money, it puts you at the mercy of the lender. For instance, a typical truck and trailer loan will run an average of $2000 to $3000 per month, for about six years, depending on the type of rig and trailer you purchase. That’s a lot of moolah to earn on the road, not to mention the fuel, maintenance and road expenses you also will incur. After owning my own trucking business for over 7 years, my suggestion is to start your business with some cash in the bank. In other words, if you borrow the money for the rig, have three to six months of cash in the bank to run on until you are earning a steady income.
Some of the comments from my readers entail borrowing money against your house, since interest rates are at an all time low (in some cases 3.5%). I have been an entrepreneur for over 20 years and for almost 4 of those I managed a branch office for a major mortgage company. Armed with “insider” knowledge of mortgage loans, my suggestion is to save up cash until you have a 3 to 6 month cushion in the bank (the more months saved the better). Avoid borrowing against your most valued asset, your home. For most hard-working Americans, this is their most valuable asset. Keep it that way by leaving the equity in it. I am also a real estate investor. Before the real estate crash, I was able to purchase over $2 million in properties with no money down. While that made me feel like a big shot, it put me in a leveraged position, leaving me vulnerable to my lenders. I have been fortunate to be able to manage my properties well, but that is not the case with many investors. My suggestion again, is to not leverage yourself to the point of vulnerability. There is an old saying the finance world: CASH IS KING! That saying will always ring true, no matter what the interest rates do. The more liquid you are, the more power and freedom you will have in your business.
Some of you will go ahead and borrow to the hills to get started in a trucking business. You will also be wishing about 12 to 18 months into that leveraged position, when the loads are slim, that you had been more liquid. You will have to stay out on the road until you meet your obligations, whereas if you were more liquid, you could enjoy more down time. It is my wish that this blog has caused my readers to at least pause and think about the cost of debt.
If you would, take some time to read my three-part blog dated 6/5/09, 6/8/09 and 6/9/09 on starting a trucking business. It will give you valuable information about preparing before you venture out as an entrepreneur. Enjoy the read and remember to be safe out there!
Hello, Fellow Drivers, Many of you carry a TWIC (Transportaion Worker Identification Credential) card to load and unload at the ports around the country. I thought this was an interesting piece of trucking industry news which I found in a recent issue of Land Lind Magazine. BTW (by the way), here is the website to find out all about TWIC cards and how to apply for one. Enjoy the read and remember to be safe out there.
Truckers surprised by places they’re asked, and not asked, for TWIC card
By Charlie Morasch
staff writer
Gary Carr visits ports nearly every day. Carr, an OOIDA member from Wayne, ME, hauls fish from the northeast to the West Coast, stopping at ports in Massachusetts, Maryland and Washington. A year ago, Carr obtained a Transportation Worker Identification Credential card – a computer-chipped biometric ID card, which stores his fingerprints and U.S. documentation. Carr said he’s rarely asked to show his TWIC. Instead, he’s allowed to drive within 10 feet of water, sometimes close to cargo and cruise ships after merely flashing his CDL. “I don’t understand where it’s totally required and where it’s not,” Carr said. “I like the idea of TWIC. It just amazes me that the government required me to pay $132 for something I’m not using.” Carr isn’t alone. Thirty-eight percent of respondents in a landlinemag.com poll said their TWIC IDs were checked always or most of the time at ports; 29 percent said rarely; and 32 percent of respondents said they were never checked for TWIC at ports. About 285,000 truckers have TWIC IDs, which last five years. The program has spent $171 million since 2003. Increasingly, OOIDA members are using their TWIC cards when entering facilities that want to photocopy ID. Carr prefers showing his TWIC, which doesn’t list personal information. “Unless you know how to read that TWIC card, you’re not going to get anything off of it,” Carr said. “With a driver’s license, they’ve got a copy that can go anywhere after I show it.” Truckers may be asked to show TWIC cards depending on whether they are in areas defined as “secure,” said TSA Spokesman Greg Soule.Coast Guard Spokeswoman Lisa Novak said she didn’t know of safety concerns regarding truckers not being asked to show TWIC cards. Currently, 70 different card readers are being tested in pilot programs, including systems that require truckers to place fingers onto a scanner. The results of the pilot programs will be delivered to the Coast Guard this year before a final card reader rule is published. LL
Six Secrets To Success In Your Trucking Business Home Office Part 1 of 2
Monday, May 24, 2010
posted by 18 Wheeler 9:37 PM
Hello, Fellow Drivers, I came across a great article in the May 2010 issue of the Home Business Connection magazine by Ann K. Levine. The magazine is filled mostly with junk ads, but this article seemed to fit those in the trucking business who have a home office. This bit of trucking industry news will hopefully help you run your trucking business home office with greater efficiency. I have condensed the article for time’s sake. Enjoy the read and remember to be safe out there.
There are six secrets to managing your home office. These tips will help you manage your life in a way that allows you to enjoy what you do. Here are the first three tips.
1. Delegate
Figure out what needs to be done by you and what can be done reasonable well by someone else. I do not need to be the person who returns things to stores and runs to the drug store. I found a great errand-running service that helps me grocery shop and take items to the tailor and dry cleaner when I do no have the time. Find a friend who wants to make extra money that will run some errands for me to free up my time for more important tasks like quarter-end reports.
If you don’t have the money to spend on this kind of help, find a friend who always does Costco or Target runs and ask them to pick up a few things for you and agree to return the favor.
2. Use The Stopper
do you feel like time runs out of your day like water down the bath drain? find the leak and stop it. Evaluate where you are wasting time and just delete it. I used to complain I had no time to get to the gym, but I knew I was spending an hour and a half each day on Facebook and Twitter, and probably another thirty minutes browsing for things I couldn’t afford (or just flat out would never buy) online. I cut myself off from these activities for a week and found I could return and just spend 20 minutes a day on my online activities. Facebook and Twitter are work-related for me, so I can justify that investment. With the “extra” time, I actually make it to Pilates class twice a week.
I also decided–after three seasons of dedication–to forego Grey’s Anatomy so I could have time to read and participate in a book club with a group of dynamic, inspiring women. I’m even considering giving up American Idol this season!
3. Retain Focus
During my busy season with work, I schedule myself according to what I can handle so I can avoid feeling overwhelmed on a daily basis. No more lunches or coffee dates with friends. Unless someone wants to go along on my weekly three-mile fun, my friends know to count me out of thing three months out of the year. I make up for it by taking them out for really nice dinners on their birthdays, and I try to say hello on Facebook– but I make no plans.
I protect my schedule so I can focus on work when I need to be working. I do not schedule routine doctor appointments for me or my family during my busy months. Also, I never schedule workouts or meetings for the non-profit board that I chair on Mondays because I anticipate that I’ll have more emails and phone calls waiting for me after the weekend.
Whether you take one or more of these tips to running a trucking business home office, use them consistently and you will see increased success. Look for Part Two of this article in tomorrow’s blog.
Hello, Fellow Drivers, It can be a daunting task to get trucking authority. The first thing to know is what type of authority you will need to obtain in order to start your trucking business. Below is a brief explanation of the two types of trucking authority and broker authority. Enjoy the read and remember to be safe out there!
There are two Types of Interstate Authority For Trucking Companies: These two types allow a driver to haul loads across state lines. INTRAstate authority allows a driver to conduct business within your home state only. This is the first step toward starting a trucking business.
COMMON Authority- Liability & Cargo Insurance are required to be filed with the FMCSA.
CONTRACT Authority- Liability Insurance only required to be filed with the FMCSA.
BROKER Authority- only required if Brokering loads for other Trucking companies. This type of authority would be used to find loads for drivers that are looking for someone to get loads for them.
For more information, look over the Federal Motor Carrier Safety Administration website. It has recently been revamped and is chock full of valuable information. Here’s their website: www.fmcsa.dot.gov
Trucking Business Tidbit – Debt is Evil Because… Part 2 of 2
Thursday, March 11, 2010
posted by 18 Wheeler 12:05 AM
Hello, Fellow Drivers, Today I want to finish up with this two-part blog about debt. For all the drivers that want to start a trucking business or want to prosper even more in their present trucking business, here are some more tips from Dan Kennedy’s book, “Wealth Attraction For Entrepreneurs”.
Wealth Magnet 19 – Independence
Debt is EVIL because…
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Every dollar you being in is instantly diminished in value by its need to contribute to servicing your debt.
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It compels you to do things you would otherwise not do. Debt produces need. Need is completely counter-productive.
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It leaves you vulnerable to Short-term competitive or marketplace challenges,, economic slumps, aberrant events (e.g. 9/11), etc. that you might otherwise painlessly withstand.
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It is habit-forming. it is easy to get good at juggling debt, comfortable living in debt. You can get so good at survival skills that they are in the way of developing success skills.
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It is a source of worry, anxiety, and frustration that interferes with wealth attractions, productivity , and even physical health.
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It lengthens the time required to get to your Financial Independence Number, sufficient assets and investments that you never need work or earn another dollar for the rest of your life.
Everybody needs to be cautious of need. After all, if you ask most people why they go to work in the morning, they say, “to pay bills.” Very high income people say the same thing. And they are still slaves, just better dressed, because they are working for debt.
Entrepreneurs need to be especially cautious of expanding need by piling on employees, infrastructure, overhead, people, places, and things. bigger is not necessarily better. More gross may not only produce less net but also may move you from master to slave before you realize it.
Whether through debt-reduced or debt-free living, other strategies, psychological techniques, or all of the these things, I can assure you that the less you need the next deal, the next sale, the next client, or the next dollar, the easier it will be to attract all the deals, sales, clients, and dollars you could ever desire or imagine, times ten.
I hope you enjoyed the blog and that you come away with useful information for you trucking business. Remember to be sage out there!
Trucking Business Tidbit – Debt is Evil Because… Part 1 of 2
Wednesday, March 10, 2010
posted by 18 Wheeler 9:34 AM
Hello, Fellow Drivers, Today I want to cover a practical subject for all of you who want to start a trucking business or who want to prosper in your present trucking business. This comes from a book I keep as a financial shot in the arm when I need to remind myself of the ways wealth comes to me. The book is written by Dan Kennedy and the short title is “Wealth Attraction For Entrepreneurs”. Here is an excerpt from chapter 19.
Wealth Magnet 19 – Independence
Wealth is attracted to wealth, money to money. But because independence is the prime outcome and benefit of wealth, wealth is also attracted to independence. One is as good as the other as a magnet. Consequently, the less you need income, the more opportunities present themselves, the more eager people are to do business with you and pay you money, and the more easily wealth is attracted. The mandates the dimple practice of living beneath your present income so that you can be and stay debt free. … I realize this is very conservative financial advice. … It is again, about attracting wealth more than it is part of a debate about using debt as investment capital. …
Many other financial gurus differ passionately. They would advise, for example, fully mortgaging your home in periods of low interest rates and investing that money in real estate, stocks, or whatever to make the spread and build up assets. I have never gotten comfortable with debt as an asset, with leveraging debt into more debt. … I also find that leverage-the-debt advice often comes from people who earn commissions selling investments. However, right now, this about that debate. The debate ignores and omits the psychology of attracting wealth by feeling wealthy at your core (not indebted) and by feeling and being independent.
Debt doesn’t just enslave through compound interest reversed. It enslaves by imposition, by telling you that you should do work you don’t want to do, accept clients or customers you can’t stand, and otherwise compromise every which way because you need money. I insist your objective should be to get to the position of not needing more income, so you can act independently, be selective, call your own shots, and be entirely free of actual or felt pressure. What I call “The Independent Position” rolls finances, attitude, reality and emotions, and the conscious and subconscious together, and it is magic.
Tune in tomorrow when we give the REST of the story, as Paul Harvey would say! Be safe out there!
Trucking Authority – The FMCSA To Be Shut Down 3-2-10
Wednesday, March 3, 2010
posted by 18 Wheeler 9:58 AM
Hello, Fellow Drivers, After taking a sabbatical from blogging I am back to keep you informed on the latest developments and information to get trucking authority or to have a successful trucking business. Land Line Magazine recently published this article about the FMCSA. It greatly affects the trucking industry. Enjoy the read and remember to be safe out there!
SPECIAL REPORT: DOT to shut down on Tuesday
Friday, Feb. 26, 2010 – As of Tuesday, March 2, a big chunk of the U.S. Department of Transportation will be shut down temporarily because of a lack of funding. Just how long it lasts will depend on Congress.
The stunning news came Friday after the Senate adjourned without passing legislation to extend surface transportation programs that were set to expire Sunday, Feb. 28.
As a result, 4,000 DOT employees will be at home without pay starting Tuesday, leaving only a skeleton crew to deal with matters of immediate safety.
Affected agencies include the Federal Highway Administration, Federal Motor Carrier Safety Administration, Federal Transit Authority and National Highway Traffic Safety Administration.
For truckers, the shutdown will bring business such as audits, authority applications, MCS-150 updates and other paperwork issues to a grinding halt.
The shutdown will not immediately affect scale houses, which are run by state law enforcement agencies. However, because FMCSA provides funding to state agencies for commercial vehicle enforcement, the furlough will put reimbursements in jeopardy.
U.S. Rep. James Oberstar, D-MN, chairman of the House Transportation and Infrastructure Committee, called an emergency press conference on Friday to shed light on the rare occurrence. The last government shutdown happened in 1995 and 1996 over disagreements about appropriations.
“The shutdown of the federal highway program means that the Federal Highway Administration won’t be able to reimburse states for highway or transit funds,” Oberstar told reporters.
The furlough and lack of funding mean no money from FMCSA to fund state commercial vehicle enforcement.
“None of that will happen because there will be no funding for it, and if there is a furlough on Tuesday there won’t be any personnel available for enforcement action,” Oberstar told Land Line.
Oberstar said the shutdown also affects the stimulus funds to states because there won’t be people in federal offices to process grants. He said some states could lose out because of the inaction.
The Highway Trust Fund has been surviving on a series of short-term extensions since the surface transportation law known as SAFETEA-LU technically expired in September 2009.
The U.S. House and Senate have been under tremendous pressure to extend the provisions of SAFETEA-LU beyond Sunday’s deadline.
U.S. Senate Majority Leader Harry Reid, D-NV, asked his colleagues on Friday to lend unanimous consent to a 30-day extension for highway programs offered by the House, but Sen. Jim Bunning, R-KY, did not consent, citing the fiscal ramifications of the $10 billion cost. Bunning’s threat of filibuster caused Reid to adjourn the Senate on Friday for the weekend. Senators are scheduled to return Tuesday with the matter only baby steps closer to resolution.
Oberstar said Friday that in order to get the DOT back to work as soon as possible, he would lend his support in the House to passing the $15 billion Senate version of jobs legislation, HR2847.
The jobs bill contains a provision for shoring up the Highway Trust Fund through the end of 2010. The House originally wanted the highway extension to last only through Sept. 30 as lawmakers work on a five- or six-year highway bill.
Tune in to Land Line and Land Line Now on Monday for continuing coverage of the shutdown and what it means for other agencies.
– By David Tanner, associate editor
david_tanner@landlinemag.com
Trucking Authority – UCR Fees For 2010 Not Finalized; Enforcement Delayed
Tuesday, February 2, 2010
posted by 18 Wheeler 7:34 PM
Hello, Fellow Drivers, I found an interesting article from Land Line Magazine, February 2010. For those of you with trucking authority, or want to get trucking authority, this article will be of interest to you. Enjoy the read and remember to be safe out there.
By Jami Jones
senior editor
With the start of a new year, truckers wanting to clear out their fee obligations are left without a clear answer on what they owe in Unified Carrier Registration fees for 2010.
The Federal Motor Carrier Safety Administration posted a notice to the Federal Register in September 2009 outlining new proposed fees. The extended comment period closed later that month.
FMCSA officials reported during the rulemaking process that states have been unable to effectively collect the UCR revenue they are entitled to by law during the 2007-2009 registration years. They believe the proposed new fee levels will both encourage states to aggressively enforce the UCR fees rule and generate the necessary revenue to execute state motor carrier safety programs.
The fee structure proposed in the rulemaking for 2010 is:
0-1 trucks………………………. $83
2-5 trucks…………………….. $166
6-20 trucks…………………… $497
21-100 trucks……………… $1,741
101-1,000 trucks…………. $8,373
1,001 or more trucks….. $82,983
Brokers and leasing companies will still be subject to the same fee paid by truckers in the 0-1 truck category.
However, as of mid-December 2009, the agency still had not published a final determination on the fees.
“There is an enforcement memo going out telling roadside law enforcement after the first of the year to not write tickets for not having your credentials in place in the cab because there simply isn’t going to be anything in place yet,” OOIDA Director of Regulatory Affairs Joe Rajkovacz told Land Line.
“That is not to say they will not be enforcing the payment of previous years’ UCR fees,” he added.Rajkovacz said truckers really need to make sure they have their proof of payment on
2009 UCR fees.
“Some jurisdictions are writing $1,000 tickets,” he said.
Rajkovacz said he expects the 2010 UCR fees to be settled sometime in the first quarter of 2010. LL