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Re: Monthly cost
- Subject: Re: Monthly cost
- From: "Steve Makohin" <wateredg@xxxxxxxxxxxx>
- Date: Wed, 8 Jun 2005 11:30:01 -0400
ABSDoug <absdoug@xxxxxxxxx> wrote,
> Never kept track until now! I ran a business for so many years...
> so much paperwork, reciepts, etc. These days, I'm making a change
> and getting more budget minded!
I have been running a business for years, and as part of doing so, I have
had to keep records of my car expenses. My experience is not unique, and it
applies to your planned forecasting for bike operating costs. Here are some
o Divide your costs into fixed costs and variable costs
o Fixed costs include things you know will occur. Examples include:
- Tires (every 7000 km, or so)
- Annual services, and other scheduled maintenance
- Oil changes
o Variable costs vary depending on some factor(s), such as
distance traveled. Examples include:
- Consumables, such as oil
o Accrued expenses. This is you planning for shit to happen. You
may want to budget $X/month, that is, set money aside but
don't spend it, for things such as scheduled overhauls, or
unexpected repairs. This is the tough part to estimate.
o Life is bitterly analog, so don't expect accuracy in your budgeting/
forecasting. My car expenses vary wildly from years where
nothing broke down, to one year where I had several shop
visits, each costing me big bucks. (That's the car, not the bike)
o I am hoping that you are not budgeting for your bike because
money is tight. It can take a lot of fun out of motorcycling when
the fun factor conflicts with fiscal constraints. Part of BMW
ownership is either having deep pockets, or being of strong
mechanical character, having the necessary equipment, time,
and inclination to do your own work.
Good luck. Have fun. Cheers.
- -Steve Makohin
Oakville, Ontario, Canada