How much money do I actually make?
One of the common questions I am asked by friends and family is how much money do I actually make driving for ride sharing companies like Uber and Lyft. For obvious reasons, there are so many variables that it is incredibly difficult to answer this question. But what I can share are some common expenses that some one should take into consideration when considering driving for a ride sharing company and how much money they will actually take home. Just like any employee or business owner our gross pay and our net pay are different. This is the same with ride sharing for income.
Here are some common expenses to take into consideration:
- Car washes
- Car Maintenance
- Depending on how much you drive you will need routine maintenance more often than when you are not driving for a ride sharing company.
- Depreciation of your car
The depreciation of your car can be harder to determine on your own and you may need to speak with an accountant to get a better understanding of how driving your car significantly more miles.
For me to determine my income, I track multiple pieces of information so that I can keep track at the end of the month. I track how many hours I was driving. I track my gas expenses, I track my working driving mileage.
I add these expenses to my fixed cost like monthly insurance. This will give me a rough total expenses. Then when I get paid my gross pay I can subtract my expenses to have a better idea of what my true income is. From here there is still more information to track because taxes haven’t been paid. Some people get mad about taxes, but I would be paying taxes if I had a w-2 position so I have learned to just consider it as part of my expenses.
Once I come up with this new figure I divide that by my hours worked and I get a feel for what I am making. For me, if I was planning on driving for Uber or Lyft as a career, I think I would row tired, but I use it to make extra money while I also build and work on other business ideas. This extra income and flexibility has been a huge value for me at this time of my life.
The fastest way to learn what you can make and what possible opportunities you have are to drive for a ride sharing company. If after a couple months you don’t like it then you can stop. At least this way you can make a decision from personal experience and not rely on the experience of other people. I hope you find this article helpful.
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