Reimbursement for mileage driven feels like you’re making money? It may not be as great a deal as you think. .
How’s it going everybody this is beat the bush today i’m gonna talk about mileage reimbursement because sometimes when you work for a company they reimburse you for the mileage that you use if you use your own car when you go to a conference or something like that you drive 20 miles you may get back something like 50 cents per mile and most the time when i talk
To people they’re actually thinking they’re making money for every single mile their drive because it’s more than offsets what they pay for gas so let me just tell you now after you factor in everything you’re probably not making money really it’s just break even the irs thinks you should get about 54 cents per mile if you use your own personal car for business
Purposes other than you know driving to work you don’t get reimbursed for driving to work so right off you might think hey you know guess is about three dollars a gallon and maybe your car gets about thirty miles per gallon and you just divide that you get oh ten cents per mile and then your employer reimburse you fifty four cents per mile so really every single
Mile you’re driving you’re earning forty four cents so then you might think hey if i drive a thousand miles i can get four hundred forty dollars worth of reimbursement that’s like a lot of money just for you know taking the car out but then what you don’t realize is that pieces of that four hundred forty dollars it’s going to be paid in two different things and
By the time you’re done paying all the things that really cost you you’re not gonna get much left over so most people are not just gonna say you only pay gas of course you’re gonna factor in other things such as the insurance that you have to pay the maintenance such as tire oil change repairs car wash the coolant washer fluid now when you put in more brake fluid
Transmission fluid timing belt oxygen sensor repairs things like that new light bulbs have they ever burn out etc just kind of repair maintenance things and of course you have the cost of the car died initially you have to pay out in order to obtain the car now the other things that people don’t usually count because they are not really visible right when you use
The car for something is car depreciation if you use your car for a certain number of miles it’s going to depreciate and if you use it for a certain limit of miles your car is going to depreciate to zero card depreciation is a real fact the newer the car the faster a decrease if you use a new car for a work thing that you drive for work it’s going to depreciate a
Lot and it’s probably gonna use up that whole 54 cents per mile another thing is the commute time the time you actually have to spend in order to drive from one place to another if you are using company time then yeah okay maybe then you don’t have to calculate this but if you have to drive two or three hours or something it does not count towards your actual work
Time then that is time that is out of your pocket another thing is the health risk involved because driving is dangerous okay the more time you spend on the road the more dangers it is because it’s just a matter of probability you can be as safe as you want but eventually something may happen okay and so there’s an increased level of risk let’s say you double
With the amount of time you’re on the road and you double your chances of getting into an accident now there’s the mileage efficiency thing if you have a car that is super efficient then that’s great because then you don’t have to spend that much on gas however there are things that it will affect efficiency such as your ac usage heat usage i’m not saying don’t
Turn turn those off or something if you really need them but you know if it’s cold use the heat if it’s hot it’s the ac but those two affect your mileage there’s also tire inflation just basic things that will keep your mileage at optimal just so that you won’t be losing when you do the driving for work there’s also the matter of aerodynamics because if you stick
Bites on top of it and drive it around you’re gonna lose a few miles per gallon and those are major things that will reduce your mileage on top of that you can be mounting cases on top of it and no some cars i have cases where they put stuff in those are real drag on the air and if you’re trying to push that thing through the air it costs a lot of energy and so
You would want to remove those if you’re just not using it all the time and just using it for community if you’re only getting the car for work purposes then you have to buy other stuff maybe you have to buy a gps car adapter or maybe if you want to change the audio system or maybe if it breaks all kinds of costs that’s also ciated with owning the car now i put
In this first one card depreciation for example if you’re working for uber or something a lot of people don’t take into account car depreciation or if you look at only the gas the insurance and maybe the maintenance cost those are the most visible things it’s not going to reflect how much you actually make because by the time you depreciate your car due to these
Ride-sharing things you’re gonna reduce your hour of hourly wage by a lot and you’re gonna look at it and then go oh my gosh i’m only making what less than minimum wage or what not which is what it works out to be heavy thing is that you have in the car if you have a lot of things in there you don’t want to carry those around because that would reduce your mileage
As well the heavier the car needs to move right and if there’s a lot of stuff that needs to move it’s going to take more gas i know every situation is a little different because certain cars may be more expensive or they’re newer so they depreciate more other people may have higher insurance rate etcetera but i hope pointing these things out will help you figure
Out how much it’s really costing you don’t forget to give me a like over here and comment down let me know if you still think you’re getting paid extra for your reimbursement at work and don’t forget to subscribe over here thanks for watching
Transcribed from video
Are Mileage Reimbursements Worth It | BeatTheBush By BeatTheBush