mvivion
SPONSOR
Bozeman,MT
Sent by a friend:
For a number of years I was afraid to calculate my exact flyingexpense. A few years ago I finally decided to get right down to the facts andcame up with the following information. This may not relate directly to yourexpenses but I believe it is worthwhile considering my approach.
First I calculated my fixed expense; what I pay if I never fly a minute eachyear. First the hanger expense; I figure this is less than I would pay for anapartment for a girlfriend on the side and I am far less likely to get shot bymy wife so I figure in the long run I am saving money considering a divorce andmedical expenses. Next I looked at insurance. When I considered that I pay carinsurance, medical expense, Social security expense, deductibles, lifeinsurance and countless extended warranty policies/insurance it became clear tome that what I pay for airplane related insurance is such a small percentagethat it is hardly worth considering. I help with my own annuals andall maintenance so that is worth something; perhaps a few thousand dollars savedeach year. As I see it all of my fixed expense ends up being an actual savingsof perhaps $5,000 per year (I don’t work cheap you know).
When it comes to variable expense I first look at fuel. AV gas is around $5.50per gallon while auto gas is only $3.00. With this in mind, I feel comfortablein saying that it is only $2.50 more to buy AV gas. Therefore, It seems to methat if I burn 12 gallons per hour then fuel to fly only cost me $30 per hourand if I can split that expense with a passenger that goes down to only $15dollars per hour out of pocket. Oil is another factor to consider. I figurethat I lose a couple of quarts of oil over the side every hour due to leeks andI burn about one quart per hour. With this in mind it is easy enough to figurethat if I burn one quart and don’t burn the two quarts that leek out then Iactually come out ahead one quart per hour so oil shouldn’t be considered anexpense.
Now comes the good part. If I have a savings of $5,000 per year on fixedexpense and it only cost $15.00 per hour to fly, I can fly 200 hours per yearfor $3000 of my savings and realize an actual savings, in pocket, of $2,000 peryear which I can put into savings.
If I didn’t have an airplane I would not be able to save the $5,000 each yearso I would have no savings. As it is, I get to fly and I am able to put backthe $2,000 for tougher times which we will surly need a time goes by.Therefore, I cannot afford to not have an airplane. Having an airplane and notflying it is not good for the engine so the 200 hours flying time is somethingI must do to protect our $2,000 annual savings.
This is how I explain the cost of flying to my nice Lady friend.
Works for me......:lol:
MTV
For a number of years I was afraid to calculate my exact flyingexpense. A few years ago I finally decided to get right down to the facts andcame up with the following information. This may not relate directly to yourexpenses but I believe it is worthwhile considering my approach.
First I calculated my fixed expense; what I pay if I never fly a minute eachyear. First the hanger expense; I figure this is less than I would pay for anapartment for a girlfriend on the side and I am far less likely to get shot bymy wife so I figure in the long run I am saving money considering a divorce andmedical expenses. Next I looked at insurance. When I considered that I pay carinsurance, medical expense, Social security expense, deductibles, lifeinsurance and countless extended warranty policies/insurance it became clear tome that what I pay for airplane related insurance is such a small percentagethat it is hardly worth considering. I help with my own annuals andall maintenance so that is worth something; perhaps a few thousand dollars savedeach year. As I see it all of my fixed expense ends up being an actual savingsof perhaps $5,000 per year (I don’t work cheap you know).
When it comes to variable expense I first look at fuel. AV gas is around $5.50per gallon while auto gas is only $3.00. With this in mind, I feel comfortablein saying that it is only $2.50 more to buy AV gas. Therefore, It seems to methat if I burn 12 gallons per hour then fuel to fly only cost me $30 per hourand if I can split that expense with a passenger that goes down to only $15dollars per hour out of pocket. Oil is another factor to consider. I figurethat I lose a couple of quarts of oil over the side every hour due to leeks andI burn about one quart per hour. With this in mind it is easy enough to figurethat if I burn one quart and don’t burn the two quarts that leek out then Iactually come out ahead one quart per hour so oil shouldn’t be considered anexpense.
Now comes the good part. If I have a savings of $5,000 per year on fixedexpense and it only cost $15.00 per hour to fly, I can fly 200 hours per yearfor $3000 of my savings and realize an actual savings, in pocket, of $2,000 peryear which I can put into savings.
If I didn’t have an airplane I would not be able to save the $5,000 each yearso I would have no savings. As it is, I get to fly and I am able to put backthe $2,000 for tougher times which we will surly need a time goes by.Therefore, I cannot afford to not have an airplane. Having an airplane and notflying it is not good for the engine so the 200 hours flying time is somethingI must do to protect our $2,000 annual savings.
This is how I explain the cost of flying to my nice Lady friend.
Works for me......:lol:
MTV