As you've learned in previous blogs, a budget shows your projected revenue, expenses and net income allowing you to see where your money will be going and what your potential tax liability will be. We also talked about your break-even point - the point at which all trucking and personal fixed expenses are effectively met.

But what happens if your break-even miles are high and you have difficulty consistently getting those miles? One of the problems could be that your costs are too high.

Every expense, both business and personal, should be put to an honest test. Is the expenditure something that is truly necessary? Is it a lot of little things getting you into trouble or a few big things that are doing the damage?

The things needed to run a trucking business such as fuel and equipment, often get used inefficiently. The resulting waste hits where it hurts the most-in your pocketbook. The following expenses are the most common business expenses that can get owner-operators into trouble:

Truck Specs. The aerodynamic truck will provide your greatest fuel efficiency. It also yields greater load capacity, more comfort, less noise and higher profit than a show truck with a big engine and a lot of chrome.

Fuel. For good fuel economy, managing your speed, performing regular maintenance, limiting idle time and checking tire pressures are just a few of the things that will help control fuel waste.

Communication. Evaluate your cell phone plan to be sure it is cost-effective. Consider a plan that allows extended use on weekends and nights. It can be a huge money-saver when it comes to lengthy personal calls.

Road Expense. You can equip your truck with a refrigerator and microwave and save yourself up to $3,000 - $4,000 a year in food costs, while still benefiting from the per diem deduction the IRS allows you to write off. Also, consider less expensive diversions and entertainment during your downtime such as renting movies, books or exercising.

Discretionary Spending. Evaluate every purchase. Ask yourself if you are buying something you absolutely need and if it helps your business. If not, keep the money in your account.

Remember, it's not about how much you make, it's about how much you can keep. A budget is your single most important tool in keeping your expenses from exceeding your income.

In my next blog I'll talk about the importance of managing personal expenses.