Last time we talked about ways to control those business expenses that can get an owner-operator into trouble. But even a business that is doing well will have difficulty surviving if you can't meet your personal obligations.

That is why it is so important to include personal expenses in your budget. The budget can help identify the costs at home that are causing you the biggest problems with cash flow. When looking at your home bills, keep in mind some of the following:

• Pay Down Credit Card Debt: Credit cards should be cash management tools, not borrowing tools. If you have a lot of credit card debt, develop a plan to pay down one card at a time. You can also work with a reputable credit counseling service to set up a
  debt management program.
• Sell Extra Cars and Trucks: If you are on the road most of the year, extra
  cars, trucks, motorcycles and boats are not getting used a lot anyway. Eliminating the payments and insurance will save a lot over the course of a year.
• Evaluate Insurances: Insurance is necessary but have you shopped around lately? It may be worth it to get some new bids on home or auto insurance.
• Minimize Entertainment Expenses: Going out can be expensive, especially if you're adding in the cost of a babysitter. Try going out less until your financial situation improves, or search for low-cost or free alternatives to dinner and a movie.
• Explore Every Option for Reducing Household
  Expenses: Turn the heat down when no one is home. Eliminate extra phone lines that aren't being used. Can you reduce your cable bill? You can often find many ways to eliminate or reduce household expenses once you are aware of what you're spending every month.

Eliminating expenses is not always easy. When you're starting out as a new owner-operator, it is especially important to keep personal expenses in line. Over time, you'll be able to build your business while learning how to increase your revenue and control costs, which will allow you to upgrade your personal lifestyle. But for now, don't overspend. Learn to live on less and adjust your lifestyle accordingly.

Managing your personal expenses on a monthly basis will help to ease the stress associated with your trucking business. A budget is the best way to understand your own financial outlook so you can focus on problem areas and adjust your lifestyle accordingly.

Next time we'll look at some cash management tips.