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transport as percentage of income for Self-employed

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Old 27-11-2019, 08:19 PM
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Default transport as percentage of income for Self-employed

Hi all,

It's coming to the end of the year, and I'm looking at my expenses.

What would be a normal range for transport expenses? Should it be in real terms, or percentage?

thanks!



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Old 27-11-2019, 08:48 PM
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Assume you earn $24,000 in a year.
i.e., $2000 in a month.
If you spend, $500 on transportation:
500/2000 = 25% of your earning and you are only left with $1500 to spend and save.


On the other hand, assume you earn $240,000 in a year
i.e., $20,000 in a month.
If you spend, $500 on transportation, i.e., the same amount as previous scenario, it is only 2.5% of your earning. You are left with $19,500 to spend and save.


$500 spending on transportation (real terms) is different for the two scenarios. It is always a good practice to look at the percentages

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