winter borrowing

Discussion in 'Lawn Mowing' started by lawnworker, Feb 14, 2002.

  1. lawnworker

    lawnworker LawnSite Senior Member
    Messages: 897

    Hello all. I am wondering how many of you out there have ever had to borrow money just to live off of in the winter. I hate to borrow money for bills but i have had to this winter. Also how do you all cope with the bordom of no work in the winter. The pressure of lower income and bordom is really tuff to take.
  2. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Messages: 4,771

    If you are that bored and hurting for money, why don't you just get a job (for the winter)?

  3. creative concepts

    creative concepts LawnSite Member
    Messages: 69

    Hey lawnworker,

    Thankfully I have not had the problem with money (knock on wood). I agree with Matt to get a winter job if you are that hurting for money. The easiest way to have enough money for the winter, at least i think it is, is as follows.

    1) figure out your monthly operating expenses (i.e ins. taxes, payroll, etc..)
    2) estimate how many months the winter will be in your area ( look at data for the past 5 years to get a better idea)
    3) save throughout the seasons for x months and add about 20% for a buffer.

    I would also talk to your accountant about the tax laws in your area because you might wind up paying more taxes for saving this extra money.

    As far as winter boredom,
    1) I review the last seasons info and try to see where I can improve as well as cut the dead weight.
    2) Get all your paper work in order and file it
    3) Get out there and hussle your butt off for more work for the following year. Most commercial accounts start to look for bids the end of December/beginning of January

    I would be intereted to here from others on this subject to see what they do as well.

    Creative Concepts
  4. stslawncare

    stslawncare LawnSite Bronze Member
    from DE
    Messages: 1,484

    its been tight but i havent had to yet, save a nice chunk of money during the season for winter, the one snow storm we had, and im actually doing a leaf job now, so im just fine.
  5. Scraper

    Scraper LawnSite Bronze Member
    Messages: 1,656

    Scottie, Don't you live at home and go to school?
  6. carlriv

    carlriv LawnSite Member
    from Mass
    Messages: 99

    Whenever I buy a new peice of equiptment I make payments so I am 4 months ahead. (as soon as possible) This way I have a buffer on all trucks and equipment. That wont pay the mortgage or put food on the table but It is nice to know I can skip 4 payments on everything I own. Doing this I also dont say "I have all this extra money in savings I need to buy ????" and end up in trouble that way. The money is already spent on what I intended.
  7. stslawncare

    stslawncare LawnSite Bronze Member
    from DE
    Messages: 1,484

    yes i do live at home and go to school, not quite sure what ur point is though?
  8. Scraper

    Scraper LawnSite Bronze Member
    Messages: 1,656

    No offense, but what bills might you have?
  9. tlcservices

    tlcservices LawnSite Member
    from fl
    Messages: 61

    the point is ,comment about something one has a clue about ,not everyone is 13 or 15 ,some people have real bills and real taxes and are not that worried about what to do about a pimple.
    the point is your in a real world and try to be adult about other peoples questions. We are trying to make a living for our kids.
    the point being your a f33333kid
  10. GroundKprs

    GroundKprs LawnSite Bronze Member
    Messages: 1,969

    If you are building your business, and are concerned about cash reserves or liquidity, and own your home, look into a home equity credit line. Mine house was paid off when I was in that situation, and I got a credit line, with a credit card or cash withdrawal access. That way you can draw at the beginning of the season if necessary, pay down thru the season, and draw again during the winter.

    But have a definite plan to use this to build over a few years. Very poor to use it year after year. And there is usually a limited draw period of 5 to 7 years. Is neat to pay down to almost nothing by Oct - Nov, even though you know you need the cash later in winter. Good strategy planning can reduce your total interest outlay by significant percentage over your expansion time. Rates are good, too, because loan is secured by house. Here today I could get prime - 0.49% (I think, could be prime+0.49%, still a great rate) on this type of loan.

    If you are in the business, already making a living at it, you must use your head and set aside the funds for the slow months. This is one of the main killers in the trade, not managing your 7-8-9 month income to live for 12 months.

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