Bill Oglesby, Director of Planning and Estimating
BILL’S BULLETS — MAKE YOUR MONEY WORK AS HARD AS YOU DO
We have all watched as the cost of food, fuel, and even the price of our favorite energy drink has skyrocketed with current inflation. We’re experiencing an increase in prices and the fall in the purchasing value of money. Gas prices are hovering around five to six dollars per gallon and affect everything we buy. As leaders, not only do we see this in our personal lives, but we also see it on the job every day when we fill up our trucks with gas or diesel, buy parts, or make repairs. What tools do we have to help us manage our projects as well as our personal finances?
The tool I turn to manage my finances is a budget: an estimate of income and expenditures for a set period of time that we can use to make sure we have enough money to cover our costs, while still having money left over to have fun. At Turner Mining Group, it is my team’s responsibility to build a budget for every project we have. The process of building a budget is the same for a multimillion-dollar project as it is for a new employee that has just hired on. The following is a list of steps that I use to set up a budget. I will use “Joe Dirt” as an example of the process:
Calculate Income: This is the foundation of an effective budget. This is the amount of money that Joe gets paid every week, minus the taxes, insurance, or retirement deductions. If Joe makes $20.00 per hour and works 50 hours per week, he will make $1,100.00 per week. Before Joe even can take the check to the bank, taxes and insurance have eaten up $275.00, so he is left with $825.00. This is Joe’s income for the week.
Track Spending: Once Joe knows how much money he has, the next step is to figure out where Joe is spending it. Begin by building a list of “fixed spending items.” These are regular monthly bills Joe has such as rent, utilities, or a truck payment. Next, Joe will list his “variable expenses.” These are spendings that can change month to month such as groceries, gas, and entertainment.
Adjust Spending: Now that Joe knows how much he is making, and how much he is spending, Joe can adjust his spending habits to not spend more than he is making. This will be painful! Does Joe buy the new tires for his truck, or does he save that money to go home and see his mom for her birthday?
Set Goals: Setting goals not only applies to Joe’s spending, but it is also why Joe gets up in the morning, works hard every day, looks out for everyone’s safety on the job, and goes home knowing he made a difference. Having goals will help Joe determine what is a “need” and what is a “want.” A “need” would be food, gas, housing, etc., where a “want” is something like a new iPhone or a night out with the boys. By separating our needs and wants, we can determine if the “want” helps us obtain our goals of spending time with our families or buying the latest and greatest bass boat.
As leaders, we need to use this same process as we manage our projects. Is what we’re doing or buying a “need” or a “want?” Can we shut a piece of equipment down for an hour or two and save some fuel and wear? We owe it to Turner Mining Group, to our team members, and to our families to manage our projects so that we can continue to Make the Mining Industry a Better Place!
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