In the future I will be debt free, I will be financially independent and live off of the income from my passive and online income. I’m 100% sure of this fact, because I’m currently doing so much work now to make sure that future version of me I envision is in fact the one that comes to be.
One of the biggest ways I’m doing this is through ridesharing, as part of my debt repayment plan I make additional income other than my 9 to 5 partly through driving for Lyft. But, is it really worth it to drive for Lyft? Does it make that much of a difference? Do I make anything after I factor in my time and expenses? Well I’m going to break down all of that here.
How Much Time Do I Spend Driving
This is a question that everyone asks me all the time. For some it’s just curiousity, for others they want to know if the amount of time put into it is going to be worth it. To be fair if I was told that you can make $500 but it is going to take you 100 hours to do it I wouldn’t enjoy working for $5 an hour. But if I’m told I can make $500 and it will take me 25 to 50 hours or $20 to $10 an hour that might be a little more worth it.
So how much time do I spend? It all depends on how you clasify time driving, for instance looking at my app right now it says I have done 24.64 in payments (of which I will get 80%) and driven 2 hours and 40 minutes, I doubt I’ll have a ride in the next 20 minutes so let’s just call it 3 hours. assuming that I get no tips that means I’ll make $19.71 or $6.57 an hour not taking into consideration my gas and other expenses related to driving.
That sounds terrible if you just look at it as straight forward like that, however I wasn’t trapped sitting waiting for a ride. Instead well waiting for a ride I got to do 30 minutes of exercise that I probably wouldn’t have done not waiting for a ride (walked). I also am vowing to write this entire article well also waiting for a ride. I also got about 30 minutes of reading in before a request, made coffee, woke my wife up and wished her good morning, called a friend and talked to him about some up coming plans, got my email to inbox 0, shaved and brushed my teeth, laundry, and on and on and on. My point is that just because I’m in driver mode that long you don’t actually have to be driving that long or even doing driving related things.
So for me I view the fact that I get so much done well waiting for a ride as important as actually making money from driving. I also only count the time I’m driving too a passenger and too the next stop to wait for one. So let’s go back to this morning, I made $19.71 this morning with 3 rides which from leaving my house to getting home and doing things and back out again I spent only 1 hour actually driving. $19.71 an hour sounds a lot better than $6.57.
The important thing though is that you have a plan for everything type mentality. For instance, if the ride takes you too far to come back home and it make financial sense do you have things with you that you can do in between rides? I have my tablet with me at all times well driving, all I do if I’m too far away from home is find a place with WiFi (not hard to do) and sit with the car off till I get a request. I even sometimes go into places like starbucks have some coffee and work on things until I get a request. Even though I’m in driver mode waiting for a request I personally don’t count it as time “driving” because I have planned out exactly what I can do well waiting for a request.
How Much Does It Cost
As you know driving a car is not free, in fact there can be a ton of costs involved. Every 3,000 miles you need to get the oil changed, you have to buy gas on a regular basis. You also have to make sure the car is clean and presentable in order to get that 5 star rating from your passengers. On top of that there is the not typical things like new tires, batteries, and brakes. All of which is needed more often the more you drive, so how much does driving cost me exactly?
I drive a 2004 Toyota Corolla that gets about 26 MPG, at the writing of this article gas is $1.87 a gallon where I live. Let’s take the national average right now though $1.998 (according to fuel gauge report) with that number my corolla costs in gas $0.08 (rounded up) a mile to drive. This morning to get that $19.71 I drove 40.5 miles (counting the travel to passenger and from pick up) costing me $3.24.
The oil change is pretty easy to price out as well. I get a deal and get it for 19.99 every time it is needed which is approximately every 2 to 3 months. Lets say its every 2 months then $9.99 a month. Lets say though that we wont a cost per mile for that oil change. $0.0007 a mile (again rounded up) so this morning cost an additional $0.03 cents (rounded up) for the oil change.
I get my car cleaned every week, or more accuratly I try to get it clean once a week. I go to a car wash which is $3.00 and a free vacuum. It takes about 20 minutes total to get everything cleaned and vacuumed. Counting this into a daily amount or rather a per mile cost is pretty difficult because some weeks I drive more than other weeks. Looking back over the last 3 months of driving my average is 138.025, or $0.03 a mile so we’ll safely say this mornings driving cost $1.22.
Totaling all of this up brings my total cost this morning cost $4.49 which is rounding up a lot. After taking that into account with the fact that I only actually drove for an hour my take home pay today is $15.25. All of this is not taking into account the possibility that I get a tip when I get my daily driving record tomorrow, or the fact that come tax time I get to count every single one of those miles for my refund.
Is It Worth It?
Does being on-line for hours without getting a ride making next to nothing make sense? For some people $15.25 an hour is terrible, for others it’s awesome. Some would consider the fact that they are on-line that long would make their hourly rate less than minimum wage, where as others would look at it like me, an opportunity to get other things done (this entire article written well on-line). On top of that I’m making $100 or more a week from this which is all going directly into debt and savings all in line with my future. Getting any amount of extra money for doing really very little work is amazing.
Agree with me or not this is a huge part of my plan toward becoming the “future me” I know I will be. I enjoy the fact that I can work on my blog, check email, and do so many other things in between passengers. Making money well getting things done to me is a win win.
If any of this sounds good to you then sign up for yourself and find out how much you can make in your area using this link
What do you think, is my hourly rate based off of how long I’m in driver mode, or how long I’m driving? Does the fact that I get other things done at the same time mean anything? Any questions about driving for rideshare?