I think it’s pretty safe to say that a lot of us in this life are trying to save money for something or other. Maybe you’re saving for a trip with your family to Disney World. Maybe, like me, you’re saving up for more fabric and materials to create beautiful quilted Christmas gifts for your loved ones (it’s never too early to start planning).
Or perhaps, you’ve just noticed your pockets are a lot lighter these days and you want to change that. It isn’t uncommon for people to feel a bit out of control with their spending and decide to do something drastic to get it back under control.
Here at Anderson Trucking Service (ATS), the name of my game is driver pay. I deal with all things money — supporting drivers to help ensure they’re financially successful. You can find me managing a large team who helps with driver pay and speaking on the phone with drivers about their settlements.
A lot of drivers feel like they can’t control their paychecks right now because freight rates are lower than they were during the pandemic. If you feel as if you can’t control how much you make, you certainly can control how much you spend — especially when it comes to fuel, optional trucking services and food on the road.
These seven tips will help you lower your operating costs so you can keep more money in your pocket at the end of the day. (But first, make sure you calculate your operating costs and understand your current cost-per-mile or CPM so you have a good grasp on how much you’re spending).
Tip #1: Cut Fuel Costs
Listen, you can’t avoid it. You’re absolutely always going to need diesel for your truck unless there’s some miracle in the future that allows us to run trucks entirely on the air that we breathe. (Fat chance of that happening, but we can dream, right?)
You might feel pretty helpless when it comes to the price of fuel. Prices have only risen over the years, after all — and they don’t appear to be dropping drastically any time soon.
As an independent contractor who pays for their own fuel, it’s a huge expense every time you hit that fuel island — especially if your company doesn’t pay out 100 percent of the fuel charge it receives from the customer (pro tip: ATS does pay drivers 100 percent of the fuel surcharge). Fuel, next to your truck payment, is your biggest controllable cost on the road.
To help control your costs, fuel wisely. That means you shouldn’t overfuel. Instead, fuel for the load. Don’t fill your tanks full every time you’re at the pump.
When you get dispatched on a load, calculate how much fuel you need utilizing the length of haul and your average miles-per-gallon (mpg). Put in enough fuel to cover the duration of your trip (and a little more, to be safe). Ideally, the fuel surcharge you receive should cover most (if not all) of the fuel for the load. Then, the cost of fuel isn’t taking money out of your check.
If you instead fill your tanks full, regardless of how much fuel you actually need, it’ll eat into your paycheck. While some drivers don’t prefer to fuel this way, it’s a good strategy to implement if you don’t want to cut into your check week after week. Sure, you’ll use the fuel eventually, but you could spread out your funds instead.
You should also take into consideration the best fuel price. You do still want to fuel in affordable areas and use a tool (like a phone app) to find cheap fuel prices near you. It can be tempting to fill your tanks full when you find good prices but understand that you’ll be putting your paycheck into your tank instead of your wallet.
Use fuel discounts when you can and take advantage of the perks you get by filling up at certain truck stops (more on this later).
Of course, I can’t talk about saving money on fuel without talking about good fuel-efficient practices. You can improve your mpg average by controlling your speed, using cruise control, limiting aggressive driving behaviors and keeping your truck in good working condition.
You can find other helpful strategies, like controlling idle time, in this article about saving money on fuel. Of course, keep in mind that most of these strategies only apply to trucks 10 years and newer. Older trucks simply aren’t as fuel efficient.
Tip #2: Opt-Out of Elective Deductions
Take a look at the services you’re paying for every week or every month. How many of those do you really need? There are certain deductions and services your trucking company requires of you that there’s no negotiating on — for instance, a maintenance account or bobtail insurance. However, you might be paying for additional, elective services. Can you take on additional training to do it yourself or source the market for a cheaper rate?
For starters, look at any elective tax services you’re paying for. While these tax services are great for independent contractors — and we recommend the service to drivers who are unsure how to operate the financial side of their business — you can choose to go another route.
While the accounting services you pay for weekly are great, could you learn a few skills yourself and cancel that service? Maybe, instead of paying a weekly fee that’s taken out of your settlements, you could instead gain some financial literacy to take care of the day-to-day financial operations of the business.
You could decide to cancel the $20 to $50 per week service and manage your finances on your own during the year. Then, when tax time rolls around, you can hire a tax preparer. You’d spend less overall.
If you’re renting a transponder with your company, purchase your own transponder instead. You could also decide to opt out of a transponder entirely and simply pay toll by toll as you pass through them. Then, you avoid the transponder rental fee.
Take out your own savings account instead of solely relying on the savings account your trucking company offers. A high-yield savings account provides higher interest rates on your earnings than traditional savings accounts do. You’ll be able to build up your savings faster.
You can say no to these elective services and your trucking company cannot retaliate against you. Be sure to use your own resources when you can.
Tip #3: Search for and Rely on Discounts
Does it take a little extra work to find coupons and discounts? Yes, it certainly does. But will it save you money? Yes, it will. And all of that extra money adds up and can make a difference.
Plenty of truck stops reward regulars. Take out the discount or reward cards at stops you frequent on the road. With every purchase, you’ll build up points you can use toward things like free coffee and showers.
Make sure you’re also aware of the discounts your trucking company offers. For instance, with ATS, drivers can go to a particular facility for trailer maintenance and they’ll receive a voucher for a free meal.
You’d be surprised at how much money you can save by doing the work to find discounts.
Tip #4: Cook Meals in Your Truck
Being a driver is tough. It takes every ounce of your attention. By the time you’re done driving, there’s a good chance you’re hangry. And when you’re hangry, what do you do? Chances are, you grab the first thing you see and it’s a total impulse buy because you just need something in your stomach — fast.
When you plan ahead and cook your meals in the morning (or meal prep), you can avoid this scenario entirely — especially because if you cook enough, you can have leftovers for the next day. It’s as simple as throwing some meat, veggies and seasonings in a slower cooker and letting it cook while you drive.
Food is a lot more expensive than it used to be. It’s hard to get a filling meal at a fast food restaurant for under $10 these days. So imagine purchasing all your meals on the road every single day. That’s a minimum of $30 per day. Compared to how much you could spend on groceries instead, that adds up quickly. You can spend under $100 per week for groceries and cook your meals.
Invest in good cookware and multi-functional kitchen tools. You (and your wallet) will be happy you did.
Tip #5: Use Your Time Wisely
You know what they say: If the wheels aren’t turning, you’re not earning. And it’s true. However, sometimes you can’t help it. You simply have to stop to take a shower, stop at headquarters to meet with your driver manager and get your truck in the shop for preventative maintenance.
Use your time wisely. When you have to run errands on the road — everything from grabbing groceries, doing laundry and getting your truck fixed — plan ahead so you can get it all done at once. Don’t spend your time sitting around the truck stop waiting for your truck to get fixed if you could be running around taking care of errands. Time spent sitting is money out of your pocket.
(Pro Tip: Some drivers even have a small portable washing machine in their trucks and a makeshift clothesline so they don’t even have to find a spot to do laundry.)
Tip #6: Learn to Say No to Extra Expenses
Do you really need it?
It can be tempting to buy every cool little trinket you see at the truck stops or small businesses you come across on the road.
Learn to say no. Is it something you need? Is it something the Department of Transportation (DOT) requires? Is it a good use of your money or do you have another DOT-required expense you need to take care of? Do you have an overdue personal bill you could use the money on instead?
The temptation to spend can be hard to overcome, especially when nice people want to sell you nice things. But you must learn how to say no to things you don’t need.
Tip #7: Make Extra Truck Payments
If you can swing it, start paying ahead on your truck payments. If you have extra money and you’re trying to pay off your truck, make extra truck payments.
If you can make an additional truck payment every 6-8 weeks, you can pay off your truck a lot faster. Spend where you can to get ahead.
Leasing your truck? You can significantly lower your balloon payment by making extra payments. You may still owe a chunk of change at the end, but if it’s a lower amount, a financial institution may be more willing to lend you the money.
Make More Money, Save More Money
Lowering your operating costs is an effective way to save money and improve financial control in the trucking industry. By implementing various strategies, such as cutting fuel costs, opting out of elective deductions, searching for discounts, cooking meals instead of eating out, using time effectively, paying ahead on truck payments and learning to say no to unnecessary expenses, drivers can keep more money in their pockets.
Managing controllable costs like fuel, services and food, while taking advantage of available discounts and rewards, can make a significant difference in reducing overall expenses. By being mindful of spending and making informed financial decisions, drivers can achieve their savings goals and gain greater control over their financial well-being.
There are also strategies you can implement to boost your earnings, even in a downturn market. When you diversify your skill set and open yourself to more freight opportunities, you’ll see more cash coming your way.
Check out these helpful strategies for boosting your income.