Tuesday, November 14, 2006

SAVINGS TIPS TO CABBIES

I don't buy stuff because I can, I buy when I think I can afford to pay for it without getting in debt and with out compromising my savings principal and my life style. That's why I maintain zero debt (exception of the mortgages) and it is a very simple rule to follow unless you are a slave to commercials and in to "I need to have it NOW" mentality. I give a huge credit to my father for teaching me how to handle money at a young age and my background in mathematics to not allow myself to be raped by the banks.

Most cab drivers are poor because they lack the knowledge and principal on how to handle cash oriented business, it's not that they don't generate enough cash, as a matter of fact driving a cab if you are creative and consistent enough you can end up saving good amount of cash in a relatively short period of time.

To my fellow cabbies and who ever is in the business of getting paid cash everyday like waitress and bartenders and so on the following tips are Uncle Mad's manual on how poor cab drivers and alike can learn how to save too.

TIP #1 Get rid of your television set! No I am not joking, you can not afford to sit on your ass and watch some tubes while you have a money making machine parked outside. If you are tired get some sleep instead, if you're bored get in to an interesting hobby or do some volunteer work, you can meet some interesting people and get laid at the same time. I think TV is one of the reasons why Americans don't have enough savings, TV is for rich people!

TIP #2 Exercise! By sitting on your fat ass and driving all day your body is not getting enough exercise and you will be exposed to chronic diseases like high blood pressure, diabetics and heart problems and so on. You don't have to join a gym to be in shape unless you want to check out some ass while you work out like I do at Lifetime Fitness. The DC area have so many parks where you can run and you can buy some weight sets and other exercising tools and work out at home and save some on gym dues.

TIP #3 Eat Healthy! Stop living on fast foods and greasy shit, it will make you tired, lousy and unproductive besides loading up on your bad cholesterol. Brown bag healthy food and water of your own, it's much cheaper and you will do your heart a favor.

TIP #4 I know it's hard but stop bad habits like smoking, excessive drinking, playing the daily lottery or other forms of gambling but you need to STOP by all means.

TIP #5 Stick around with a meaningful relationship and if you are married don't fuck around. I see married cabbies do all kind of stupid shit that could cost them their marriage, money and health.

You have to be committed to the last 5 tips before you will be able go to the second phase to start save any money, unless you work on the fundamentals on your well being first and build a will power and a consistent positive routine the chances of you being a financially successful as a cab driver are mathematically very remote.


TIP #6 Don't overwork yourself! The human body is not a machine, it needs a decent amount of rest and sleeping time depending on what your needs are. If you could get away with it have a good 5 working days or 6 if not possible but NEVER work 7 days a week. You will do yourself harm in the long run and you could easily burn yourself out but make sure to be disciplined on your work ethic and Consistency because you are your own boss and there is no one to supervise you.

TIP #7 Educate yourself about the city of where you drive, read anything you could find about the city, be knowledgeable and informative. When I tell my passengers some shit about the city that they didn't know about even though they lived in Washington for years they get real impressed and that could be an extra dollar or two which could turn in to thousands of dollars in the long run. Cabs are expensive and people take cabs for the convenience so you have to sell a great service by being very informative and being an expert in what you do and this goes out to the waiting staff also, take the menu home and study it, understand the ingredients so in a nut shell, KNOW YOUR SHIT REAL WELL!!!

Tip #8 Be clean! Make sure you take a shower before you step in side your cab and wear fresh cloths and clean your cab everyday. Don't be surprised by not getting tipped because you and your cab smell like a fucken garbage and unfortunately I hear some horror stories from my passengers about some of you funky ass cab drivers so lets get with the program. Being neat and clean generates positive energy and will draw more cash to your pocket.

Tip #9 Think positively about what you do for a living and always you should feel like a million bucks. When you feel good you attract good people and never associate yourself with negative jackasses because they will drag you down with them and never bring your personal problems inside your cab with you.

Tip #10 When you are out there driving, relax and take your time, most cab drivers think that they are good because they are aggressive hustlers but that's not the case, usually those monsters are stressed out and live miserable lives and probably don't have jack in their savings. I see these cabbies cutting me off to be in front of me for a pick up but I don't let that bother me at all because I know by the end of the day I will come out ahead with pocketful of cash.

Tip #11 NEVER NEVER NEVER cheat your passengers, I know it happens in DC a lot because we have confusing zone system instead of meters so a lot of people are taken for a ride. If you think you are doing out of ordinary stuff for your customer like getting them a hooker or helping them buy crack let them know in advance how much your time is worth and that's what I do all night long. If you steal other people's money it will come back to bite you in some form or another and it is not the right thing to do. Would you teach your little girl or your little boy to steal? I thought so!

Tip #12 Don't charge for any shit that you can't pay off when the bill arrives! If you can't pay it off that means your ass can not afford it in the first place when you used the plastic. I only charge for my gasoline which is about $800-$1000/month depending on what Dick Cheney and the gang decide on how much they want for a gallon of gasoline but I do pay my bill by the end of the month. I use my card for accounting convenience and to keep my credit history going and as far as I am concerned the only loans you should carry if you have to are for your house and education period. DON'T let the banks sexually assault you! If you are in debt get rid of it first before you start saving.

Now if you can do all that it means that you are ready for the final phase and start executing tip # 13

Tip #13 Pay yourself first! Put away the at least the first $60 every day and then start from zero, convince yourself that $60 doesn't exist do not depend on that $60 for anything. Start to work on your living expenses and ER fund and all the garbage after you paid your ass. Make sure you go to a professional who can help you make a sound investment decisions with that $60/day. Don't try to be a hero and make your own investment shit, the odds are stacked up against you, you can always research and educate yourself about the markets but at the same time you have to let someone who is trained and does that for a living handle your business. If you manage to save your first $60 five days a week with a conservative 10% return on your investment, in ten years you will end up with almost a quarter of a million dollars!(look at the table year by year) imagine if you can put away $100/day or more?

Year Balance
0 $ 15,078.68
1 $ 31,736.30
2 $ 50,138.19
3 $ 70,466.99
4 $ 92,924.49
5 $ 117,733.58
6 $ 145,140.50
7 $ 175,417.29
8 $ 208,864.46
9 $ 245,813.97

Always remember it's not how much you make! it's how much of it you keep! and please if you think this is a helpful post, print it out and pass it on to the next cabbie you see or you ride with. I wrote this because I know a lot of cab drivers who drove for years and years but they have nothing to show for! and it is sad because few changes here and there could have changed the outcome of their future but you are never to late to save and start NOW!

Please don't forget the homeless.

Mad "Warren Buffet" Cabbie

28 comments:

Anonymous said...

Hello Mad I saw tip #1 and I was like "I knew it!" I am not in a cash oriented business but TV is detrimental to a lot of things like studying or working for self. Now I am going to look at other tips.

Anonymous said...

Well, well, Warren! Great solid advice, but must be disciplined to see it through. It the bad habits that's the problem, not how much we make. Even for a working stiff with fixed income like me gets into shit with plastic. I've been paying the debt off my ass for a while, the overall cost is too damned high it's not worth it. You're right, Mad. It's how much we save/invest that matters, and the discipline that comes with it. Spread the word!

Anonymous said...

Mad, Take this fuckin' blog down. You are going to trigger WWIII by doubling the GDP of Pakistan and Ethopia with this knowledge. These people stink and they won't stop stinking until someone exactly like urself tells them how to act like a human being. This is good fuckin' information for a lot of shit and you should take it down, keep it to yourself and I will contact you about a publishing deal in March.

june in florida said...

Great advice Mad, some of it i am doing now and will read again to see what else i can use. Wish i had this advice when i was driving. I made fantastic money but spent it as fast. Enjoyed the time but have nothing to show for it.YOU PEOPLE listen to Mad.

freddybeach cabby said...

good advice! gotta have balls to stick to it though...

Anonymous said...

Why is it your business that other cab drivers save? Maybe they don't want to! Maybe they are not money hungry like you!

Monster Cabby

Anonymous said...

I am a long time reader of your blog Mad Cabbie and I know who you are. I usually don't comment but I have to respond to that idiot Monster Cabby who is telling you that you are money hungry because you are advicing your fellow drivers to save. I don't even think he is a real cab driver because most of us do appreciate your effort to point out the potential that cabbies have if we put our minds together and it's a great wake up call for most of us, so we thank you for that.

Monster cabbie or who ever you are go to hell, saving for your retirement doesn't qualify someone of being money hungry!

JJ

Anonymous said...

Great advice but I love my MTV!!!

Tubehead

NurseWhoLvdMe said...

Good stuff Mad. What made you think about this?

Twoste said...

A cab driver that studied business ethics at Wharton...nice!

Bob said...

Yep all good sound advice especially the bit about relaxing and taking time, too many drivers die young

Anonymous said...

Nice post Mad Cabbie, I take cabs in DC every day and good rides most of the time and I will print few copies and pass it on, but you should talk about cab drivers and health insurance in the future. It seems like that's what DC cabbies or cabbies in any other city that I travel to have problems with purchasing health insurances.
But I do agree that cab drivers should get their piece of the pie from wall street that the rest of America is benifiting from.

My wife got me in to reading your work and you are doing a great job and keep it up.

Mark.

John said...

Good advice..Read Rich dad poor dad.
Have to go thanks for the advice

Anonymous said...

Mad Great post as usual, It is a solid advice and I like it when you addressed that personal issues need to be resolved before any kind of long time financial commitment, that's where a lot of people make mistake and jump off the savings bandwagon. After few failures trying to save as a cabbie I managed to cut my expenses and force myself to save about 8 years ago and the result is priceless so for any of you cabbies out there who think the cash every day will go on forever, you are mistaken and you better start right NOW. By the way I drive for your competation (Yellow Cab) but I still love you.

Go Redskins!
Bruce

MJ06 said...

Hey Mad I like it really that makes alot of sence your dead on.

Oh Mad since this is a money post I have this question I don't know why I thought of it but you said that you are a Diamond radio Cab since your an owner of your cab how does Diamond make any money off of you? Is there some type of distpatching fee every month that you have to pay or somthing?

Cabbie X said...

Great advice, Mad. I have been stuffing money like crazy into investments so that when I get tired of this shit I can have a nice little cottage out in the woods somewhere.

Peggy said...

Saving is always a good idea, no matter what business you find yourself in.

Mad Cabbie said...

Anonymous #1 Trust me TV is the #1 enemy, I haven't seen a single episode of the Saprano's and I am still alive and functioning very well.

Anonymous #2 I know it's hard but being old and broke is much harder.

Anonymous #3 I don't know if my advice can double the GDP of Ethiopia and Pakistan maybe the sharks at the World Bank can do something about that but I know my fellow drivers can benefit from it because I live what I preach and it has worked well for the last 15 years.

June, it's never too late to start, I guess you were a wild party girl uh?

Freddy, It's hard when you start but once you start looking at your statment every month it could be addictive and you want more!

Monster Cabby, Why are you bitter? Did time pass you by you poor soul? It don't matter to me if you call me "money hungry" because I now I am not, I am just trying to help but one thing is for sure, I would never hang out with a negative punk like you!

JJ, I know you as well! Fuck Monster Cabbie, I am not worried about him but thanks for being my bull dog! Did you finish pimping that caprice yet?

LOL Tubehead! I used to love my MTV but I love living life better now!

Nurse, I want to write some positive stuff once in a while besides the usual junk I put out, I am trying to be a good citizen Eryn!

Twoste, I didn't go to Wharton and you don't need to go to a designer name business school to plan out your financial future. I am just trying to help a few Journalist like you who live from pay check to pay check! hahahaha! don't try be a smart ass Twoste because you can't win!

Bob, thanks for linking this post, you are a gentelman and a scholar!

Thanks for the love Mark, and you are right Insurance cost is killing the whole country but there is a way to do it for cabbies by saving a few bucks maybe I will post it in my next "Mad Cabbie the Good Citizen" post! and you have a smart wife.

John, I have read "Poor Dad, Rich Dad" years ago it's a great read for anyone who is interested in to learning the concept of saving and building wealth and the same author has a new book out with Donald Trump.

Bruce, Good for you my man if you've been doing for the last 8 years you have to buy me dinner then. But I don't know about the "GO REDSKINS" comment, maybe next year! and Diamond Co. Cab 202-387-6200 is much better than your Yellow "No Show" Cab Co.

Mj, In DC majority of us own our cabs and hook up with a company for using the logo, insurance and dispatch service and in my case I pay $93.00/week for that service and it's well worth it because in DC if you call for a cab you pay $2.00 on top of the fare to the driver so it pays for itself and more. I hope I answered your question.

I am with you with that Cabbie X, I like your "stuffing Money" description, you're my kind of soldier bro! keep it up!

Absolutely Peggy, but I was trying to tailor my advice for my fellow cab drivers to understand, of course lazy gardners need to save as well!

Becky said...

Great advice. And thank you for posting number 11. I'm not sure if I have a lost tourist look about me, but 9/10 times that I take a DC cab, I am quoted an incorrect price. I want to scream "I've memorized the zone lines - don't f with me!", but instead I just pay the exact correct fare (no tip for lying), and call the license plate number into the commission. I feel like a total bitch every time I don't tip, but a cheating businessperson can't expect a reward.

But that 1 in 10 who is honest gets an awesome tip!

MJ06 said...

Hey mad thats exactly the answere I wanted because I remembered you saying that most DC cabbies own there cabs.
By the way mad your blogs booming with popularity to me your probabley ganna be the next New York Hack.

Claire said...

Hey Cabbie,

I hope it's not too late to add my thanks for these wonderful tips which should be Commandments! I like what you say to those of us who have not been saving or following this plan to start NOW! We always have right now, that's why they call it the present.

I know you are addressing cabbies but your advice can be modified and applied to all our lives.

Take care,

Claire

DC Cab Rider said...

Tip #14 - Don't hit on the passengers.

Sorry - annoying ride home last night :).

Mad Cabbie said...

Becky, I am sorry that you have to deal with the sharks most of the time, but you are a smart passenger who took the time to educated yourself to understand how the zones are mapped out and I hope I was one of the drivers who got that awesome tip. But remember even some drivers don't even know the zones all that well, so not all the drivers are out there to get you but if you get in to a Diamond cab driven by a bolding white man with a bad tattoo and a bible on his dash board, please hold on to your wallet!

MJ, I am glad I answered your question, I am not sure if my style of writing could be popular because it's honest and not politically correct most of the time including some offensive words we use, we write the way we talk, once someone commented that if I tone it down a little bit I could get more media exposure but I am not out here to get some attention, I am doing this to entertiane all of my three fans!

Absolutely Claire, this advice is for everyone of us but I did address it to people making cash every day because it is harder to manage than drawing a pay check every two weeks. You can apply the same principal by paying yourself first and then do the other things second, if it's not enough there is always the option of a part time job, the beauty of driving a cab is if you need more funds you just drive more hours, this is not to advice to start driving a cab!

You know DCCR it's too bad that you don't have the time to contribute more to your blog because I think you are a funny chic. I can understand your frustration of being hit on by cabbies most of the time like you said but you also have the power to say "I am not interested in your scary ass so please take me to my building while we talk about the stupid weather!" and that will be the end of it. And don't forget the majority of the drivers come from all over the world and there is always a culture issue unless you were hit on by Pastor Joe and again he is from Bel Air Maryland! so is that considered in the United States? Good to hear from you DCCR!

DC Cab Rider said...

I bow to you in shame Mad Cabbie, for not properly feeding my blog animal these days. Hopefully it will forgive me as I try to be a better parent.

Xtreme English said...

Mad Cabbie, that's simply GREAT advice, starting with the TV set! It all makes a lot of sense to me, but holy toledo! $60 a day?! That's like...(calculator sounds)...$300 a week for those of us on the 5-day-a-week hamster wheel!! Hmmm...Could it be done? Sure, if I didn't have all those freakin bills. Now I know what my next step is...getting rid of the bills!

Thanks, Mad Cabbie. You are a fountain of common sense!!!

Peggy's mom

Xtreme English said...

"Mad 'Warren Buffet' Cabbie...lol!!!

Mad Cabbie said...

Peggy's mom, $60/day is just an example for DC cabbies because I know they are cabable of doing that but even $10/day could do some good.

Abagale said...

I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.


Margaret

http://lotterymegamillions.net