When driving for Uber, Bolt, or other ride-sharing apps, you are your own boss. While there are many perks of this business, budgeting for PCO drivers can get tricky because they not only have to manage their personal expenses but also their business budget. Below we have shared how a typical PCO car driver does their budgeting.
Monthly Expenses
While most employees create a budget based on their net income, PCO drivers determine their monthly expenses for budgeting. It’s because they have a different amount of money coming in each month. So by knowing what you need to pay for, such as rent, utilities, loan payments, and groceries, you can choose a driving plan that fulfils your monthly expenses.
Determining Want-to-Haves
Besides the must-haves like rent or groceries, there are things that you want to have. Those things aren’t a necessity, but help lead a better lifestyle. For example, going out for a nice dinner, buying new shoes, travelling, etc. It’s also important to include these things in your budget. After determining your monthly expenses, you can make a list of things you want along with their costs. This way, you can save money for it, or take extra rides to reach your goal.
Emergency Funds
After ruling out all the expenses, then comes the most crucial part, saving for emergencies. PCO drivers typically save enough so they can keep up for at least six months (up to nine months) without a viable income. There can be many instances where you might not be able to work. Having adequate savings will help you pay for your essentials during emergencies.
Save for Retirement
As a PCO driver, you also have to consider your retirement savings. Create a separate account for your retirement and transfer some amount every month. It isn’t essential to contribute to your retirement account every month, but make sure some amount of your earnings is going into it.
If you don’t have enough income to fulfil all these requirements, you have to find viable strategies to maximise your income. One way to do this is by cutting your costs. In a PCO business costs come from car maintenance, fuel, servicing, tyre changes, penalties, etc. However, you can avoid most of these costs by renting your PCO car from G&M Direct Hire.
We are a leading PCO car hire company in Ilford, London, offering the latest luxury cars for rent at affordable rates. By renting our electric cars, you can avoid many charges like Congestion and ULEZ charges. We offer free car maintenance and servicing and help you avoid penalties and other costs. As a result, you get to save a significant amount. Contact us for details.