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Trucking Job Career /Comparison
by Troy Dudenhoefer
Truckdriving Compared to other Jobs
I decided to hypothetically put two people seeking professional careers, one a prospective college student, the other a truck driving school candidate, up against each other in a comparison of job training, annual salary, debt accumulation, and investment capability, while comparing time frames to similar objectives. Assuming we start this time frame with the student entering college and the truck driver entering truck driving school.
The college student is seeking one of the top paid careers with a degree in any of the following: Marketing, Business Administration, Mechanical Engineering, Management Information Systems, Civil Engineering, Electrical Engineering, Computer Science, Accounting, Finance or Economics. The truck driver is just looking for a good driving job that will put him home every day with good pay.
To be fair, we will base the cost of the college student's tuition on an average of $16,000 at an in-state public university, and about $33,000 for a private school each year for 4 years. These costs include tuition, fees, books, room and board and other expenses.
The cost of the truck driver's training school is $1,500 to $3,500. Most schools pay for room and board and some company schools pay the student wages while they are training. Company schools will pay for training if the student agrees to work for them for one year.
Now let's fast forward to the 3 month level from our starting point: The college student is learning and acquiring debt. The truck driver has completed his schooling and has been making money driving for a break-in company at the rate of $35,000 a year. The driver has just got enough experience to get hired with a career company and he does.
One year and 3 months from the starting point: The college student is still learning and acquiring debt, somewhere between $20,000 and $41,250. The truck driver has had several pay raises, and grossed over $65,000 his first year with his new company. He put $15,500 in his 401k with a handsome company match. He also put money in an IRA of $4,000 and is buying stocks. He goes home every day to the brand new house he just purchased, and is enjoying all the freedom that driving has to offer. Two years and 3 months in: The total debt of the college student is around $36,000 to $74,250 dollars, but he is learning. The truck driver's gross earnings were $70,000 dollars, again topping out his 401k and an IRA for a new balance of $43,000 dollars with interest. He is making extra payments on his home and it has been appraised at a value $4,000 above original purchase price. Three years and 3 months from the starting gate: Our college student is beginning to realize how long it is going to take to pay back those student loans. It's a good thing he chose one of the top starting salary majors or he might be in trouble. His total debt acquired so far: $52,000 to $107,250 dollars. And our truck driver's house value has gone up to a total of $8,000 dollars above purchase price. His investment account's total balance is $66,250. 4years and 3months later: Congratulations to our college student! Happy graduation! Your debt is $68,000 to $140,250, plus interest. Your starting salary as an Electrical Engineer is $54,599. Our truck driver has earned $78,000 dollars this year and his home value is up $12,500 above the purchase price. His investment portfolio balance is around $91,000 dollars. A year later: In the following year our college student is working and likes his new job. He is in the market for a new home, but is very limited due to the debt he has acquired. A job starting at $55,000 seemed like a lot of money when he first started school, but with the student loans to pay back it has limited him to a home below previous expectations. As much as the student would like to save for retirement, he just can't seem to find the extra money to invest. To furnish his new home he does what most Americans do, he runs up those credit cards. Sound familiar?
Our truck driver couldn't be happier. He has plenty of time at work to study and learn all of the things he finds interesting. His home keeps appreciating and stocks are doing well. He has close to a $130,000 balance in his portfolio and is enjoying all his free time driving down the road listening to audio books on investing. He is getting ready to build a new custom home, and with only about five years in this industry, he can see an early retirement on the horizon.
Now if you look at the college student's $68,000 to $140,250 debt compared to the drivers balance of $130,000 plus home equity, we have as much as a $300,000 difference at about 5 years. The student has the power of interest working against him, while the driver has the power of compounding interest working in his favor!
Being happy or successful in life is not about a title or a piece of paper. It's about making wise decisions that can make your life smooth and stress free. Regardless of the reasoning, taking on debt is not a good plan if you want to achieve financial independence or experience true freedom in a timely fashion. It's a person's debt-to-income ratio, and what they do with their money that counts. In this and most scenarios, the college student will not ever catch up to the truck driver financially. If a person can go to college for free, great! I have yet to see anything that is 100% free. Even if the college student did go to school for free, he graduates with a balance of $0. The truck driver has a handsome home and investment portfolio, with the ability to work and live anywhere in the country enjoying all the freedoms that trucking has to offer.
There is a truck driving shortage in this country that is growing larger each year. There is no shortage of people taking on and acquiring debt by going to college. Too many people just go to college, no matter the cost, because they were brought up believing it is the thing to do. The percentage of students that actually graduate and get a degree that would enable them a have starting wage of $55,000 is extremely small. Many students don't graduate, but have the student loans to pay back anyway. Over 30% of college students leave after the first year and almost 50% never graduate, according to the Department of Education 2006.
Misconceptions of a Truck Driving Job
We have all heard the saying "He's got a mouth like a truck driver". Growing up we hear many things that steer us away or towards different jobs in life. No thanks to Hollywood, its portrayal of truck drivers, and the bad accidents we see on the evening news, it seems truck drivers get a bad rap.
Most believe truck drivers are low paid vagrant types that live on the road drifting in and out of trouble. These stereotypes I find to be humorous for I am a truck driver. I have many peers and none of them fit this profile. My peers all make $65,000-$100,000 dollars a year with trucking jobs and most of us are home everyday with our families. We live in above average homes with above average toys.
There is a truck driver shortage in this country that is growing larger every year. Every time I see someone working a menial job living paycheck to paycheck struggling to survive I scratch my head. I cant help but wonder if they have a drivers license. Because having a drivers license is all someone needs to get started and make the aforementioned money in a years time with a trucking job.
There is no need to spend hundreds of thousands on an college education only to graduate too make much less with massive debt. Most would believe that a college degree would enable you to earn more money than with a trucking job. I know many people with degrees whose salaries are not half of a truck driver.
There are many high paying trucking jobs in the trucking industry available with no need to be away from home or live on the road. I don't believe that the general public is aware these trucking jobs even exist. I know this because of the shocked looks on faces when I explain what I make, and what I do.
The greatest thing about trucking jobs vs. a regular job is the amount of freedom you have. You can't put a price on freedom of a trucking job, and you will find no other job that will give you as much of it. So the next time you see a truck driver remember this; his investment portfolio and his home are probably 3 times the size of the average American household. He has no student loans to pay back and he has the freedom to talk "like a truck driver" if he wants to!