Building a Budget?

[67ITB]

I am in the process of trying to provide my significant other with a best “guesstimate” of my expenses for a season of racing. And although I know the money goes out I can’t seem to be able to break it down into line items, and put it in a spreadsheet.

I know that some purchases are one-time expenses (generator) and others are reoccurring (entry fees) but I cant for the life of me come up with a list that reflects what I actually spend money on.

Do any of you have a list or spread sheet that you use to track your racing expenses? I am not looking to see how much you spend!!!! Only what some of the items are that you spend money on, so that I can develop an accurate budget?

Thanks in advance for your help

Matt Bal

[RacerBowie]

Email me at bowieg (at) lifelinkfound (dot) org and I will pass along my VERY comprehensive Spreadsheet.

Bowie

[zracre]

What kind of car? expenses can vary alot depending on tires etc....the biggest expense other than the car and keeping tires on it are travel expenses....email me too at [email protected] and i can send you some of my expense breakdowns. good luck!!


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Evan Darling
ITA Integra

[almracing]

Racing Budget = Way More than you should be spending on a hobby.

Anthony R.
ITA #86 NER

[MMiskoe]

While you're still at the parts store, just write on the slip somethign that will remind you it was a purchase for the racecar and then throw it in a pile. When the pile is big enough (or when you spouse yells at you to clean off the desk) tally them up. Also get a credit card that is only for racing. Try to put everything for the racecar on it, then just look at the monthly statement.

This will obviously take a season or two to figure out where the money gets spent. You might be surprised what you spent the most money on at the end of a season (entries?).

If you do it on a spread sheet, resist the temptation to sum the column with the dollar amounts in it. Much easier to stomach the individual items if you don't see what they total to. Definetly don't start adding up all the seasons into a lifetime total.

[OTLimit]

I have threatened to put Chris on a single credit card, but it hasn't happened yet. I would have to be the one to call of his suppliers and change the card on file for this to actually work. And he really doesn't want to know the total anyway....I've come close to figuring it out a couple of times, and it gets real quiet around here. But the one credit card would really be the way to do it.

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Lesley Albin
Over The Limit Racing
Blazen Golden Retrievers

[zooracer]

basically, you have to realize that you will never be a wealthy man if your racing, your always going to be hurting for money, and will probably die poor.
If this is worth it to you, then what is the point of trying to figure out exactly how much you spend?
I certainly cleared this with the miss long before we tied the knot...
Just race within your budgetary limits. Meaning, dont spend money on the car if you cant make next months mortgage, and you'll be fine.
If your wife objects to large amounts of money going out the door for a hobby, then showing her on paper exactly what your going to spend probably isnt going to help matters.
There is always bicycle racing. The tires last a lot longer...

[lateapex911]

First the war in Iraq, and now this! man.....you haven't had it easy lately have you??

Kidding, of course, although the budget thingy would have me longing to get shot at again! LOL

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Jake Gulick
CarriageHouse Motorsports
ITA 57 RX-7
New England Region
[email protected]

[67ITB]

Thank you all for your advice and especially to those that sent spread sheets to help track expenses.

Jake,
At least with the bullets flying I could wear a Kevlar vest to stop them…….
She keeps reminding me that I am worth more to her over there!!!
And I keep telling her that I am going to go back to Iraq where it’s peaceful!!!

Matt

[Andy Bettencourt]

Matt,

I'll show you what we have at NHIS, you bring the MRE's and I'll supply the beer.



AB

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Andy Bettencourt
New England Region, R188967
www.flatout-motorsports.com

[joeg]

While I have no budget, I do know what I spend on racing.

I do not like to share the annual figures because it sort of scares people away...literally...from venturing into the sport.

Remember, this is a pastime, diversion and hobby. If you can afford it, go for it; if not, try it at asmaller scale.

Most people can afford a car. it is the running, "per event" and maintenance costs that are high.

Cheers.

Cheers.

[Knestis]

Don't neglect the incidentals - all of the crap that gets lost (or you can hide) in a long receipt from Lowes or Home Despot: Bins, buckets, cords, lights, fans, tools, tarp stakes, hold-down straps, chairs, coolers, cleaners, gloves, fuel cans, bits of hardware, wiring connectors, umbrellas, etc., etc., etc.

It's VERY easy to carry $50 of crap to the register in a visit. Do that 3 times a week and you've increased your racing expenditures by $1800 for the year.

The same goes for brake cleaner, latex gloves, rags and other shop consummables.

It's also pretty impressive how quickly the installation of a $30 part can become a $60 project. That's what I spent installing my master cut-off switch, after I got done buying thick wire, connectors, HD strink wrap, hardware, sealant, and insulating goo for the terminals. That isn't counting the new step bit (another $30 or so) to replace the one that I couldn't find when I needed it.

I have personal issues about the whole budget thing because, as was alluded to above, I think we understate them pretty drastically - for a variety of reasons. This makes it all the easier for a newbie club racer to get in over his/her head, as they are misled by those of us who have been doing it for a while.

I used to race with a guy who built one of the very first IT cars in the US - it was actually a GRM project car, if I remember correctly. He used to take it to car shows and tell people that they could duplicate it for something like $3000. When it went up for sale later, oddly, it was suddenly almost twice that.

The "replacement price" of my Golf is right around $18,000 - not including the value of my or Cameron's labor. People are going to look at that and think, "That's WAY too much! I could buy a competitive ITS car for that!" but they'd be ignoring the fact that this total includes all new brake calipers, CV joints, tie rods, ball joints, hubs (three pairs by now), uprights, bearings, engine mounts, water pump, gaskets, belts, hoses (they are insanely expensive on this car!), and a bunch of other piddly stuff.

Racing a car while waiting for old OE parts to break is what we call "false economy." I've had [two] mechanical failure[s] in 1.5 seasons - when I couldn't start a run at a Rallycross because a nut fell off of the shift linkage. We finish enduros because we replace parts before they fail. Why would you spend entry fee money otherwise? [EDIT - needed to include the bearing problem at Summit.]

It also includes starting with a car that wasn't a basket case (no bodywork or paint to do), a comprehensive cage (~$2000), a really good seat (~$1000), and top-notch safety equipment.

All of this - including accurate accounting of the first year's real expenses - translates into a per-track-hour cost that approach $300. This includes depreciation of the car to zero over three years (a very sensible assumption, looking across the game) but not including hotels or entry fees.

I also didn't include sunk costs specific to the fact that I bought Showroom Stock-specific parts (like new OE struts) but that is balanced by the fact that I didn't include revenues generated by the sale of bits that came OFF of the car when I IT'd it.

You do NOT want to enter into this game fiscally uninformed. Honestly - SCCA racing has busted up marriages (I could point to two, that I actually watched fall apart) and put lots of people badly into debt.

K

[This message has been edited by Knestis (edited June 29, 2005).]

[gsbaker]

I would estimate that $20K is needed to get into racing. This includes a car that is complete and safe, and a driver that is complete (licensed) and safe.

Everytime you say, "Let's go to the track," it's $500, if not more--potentially a lot more depending on your lifestyle and what breaks.

Purpose-built race cars are cheaper. You can find used FVs for under $5K. It costs about $18K to get into a SRF, but you can sell it a couple years later for $16K.

Road racers, BTW, spend twice as much as do drag and oval racers.

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Gregg Baker, P.E.
Isaac, LLC
http://www.isaacdirect.com

[67ITB]

Andy,
I will gladly drink your beer!!! and I will bring the MRE’s but you MUST eat them!!!

Kirk,
I think you hit the nail on the head with your trips to Lowes, Home Depot and Sears,
Not to mention the trailer shop and then there is the tow vehicle………

Those are exactly the costs I am trying to track, as it appears that every time I go out I drop 100 bucks on “something” that I “need” from…(insert favorite store).

I follow your same logic on vehicle maintenance and spend a lot of time replacing parts in the shop so that I can sit in my chair and relax while at the track. My car uses the (Dick Shine) “Navy Flotation” test for any questionable parts…. If you question a part, toss it in a bucket of water and if it sinks it needs to be replaced. After years and years of racing these cars Dick has us (Eli and I) on a vigorous preventative maintenance schedule.

Thanks again for the pointers (I see where that $$ is going)

Matt Bal

[Bill Miller]

Originally posted by 67ITB:
Andy,
I will gladly drink your beer!!! and I will bring the MRE’s but you MUST eat them!!!

Kirk,
I think you hit the nail on the head with your trips to Lowes, Home Depot and Sears,
Not to mention the trailer shop and then there is the tow vehicle………

Those are exactly the costs I am trying to track, as it appears that every time I go out I drop 100 bucks on “something” that I “need” from…(insert favorite store).

I follow your same logic on vehicle maintenance and spend a lot of time replacing parts in the shop so that I can sit in my chair and relax while at the track. My car uses the (Dick Shine) “Navy Flotation” test for any questionable parts…. If you question a part, toss it in a bucket of water and if it sinks it needs to be replaced. After years and years of racing these cars Dick has us (Eli and I) on a vigorous preventative maintenance schedule.

Thanks again for the pointers (I see where that $$ is going)

Matt Bal

The dedicated credit card is a good way to keep track of the expenses. And, if you're diligent in using it for ALL the racing expenditures. An extension of that concept, is to set your annual racing budget, and have the card limit set to that. Granted, you should be paying the card bills as they come in (credit card racing is a very BAD thing!), but it will certainly give you an idea of where you are, vis-a-vis your annual budget.

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MARRS #25 ITB Rabbit GTI (sold) | MARRS #25 HProd Rabbit
SCCA 279608

[DavidM]

I definitely haven't been at this long enough to know what it takes over the long run, but I think you have to divide expenses into two categories: 1) startup costs 2) on-going costs. I'm still in the startup phase and don't even want to think about how much I've spent to put together everything (I could add it up as I keep everything in Quicken and have a "racing" category, but I think I'd get depressed). I look at most of it as a one time expense, though. At least I sure hope I never need another trailer (and everything in it) or tow vehicle. Then there's the on-going costs of going to a race and maintaining the car. That's your yearly budget. Once you're past the startup phase you just have to look at how much you can spend on racing each year and let that determine how many races you can make. At least that's how I'm approaching it.

David

[JamesB]

David,


what you have just mentioned is exactly what I am going through. Between changing my vehicals for a TV, safety gear, the car, trailer, random gear I need. I have a healthy investment, but not as bad since I already have most of the paddock stuff from my track days and autocrossing.

Then next season is just building my budget to see how many of the races I can afford to make.

I dont even tally what I spent on cars in the years go past, if I did I would cry.

[JLawton]

Originally posted by 67ITB:
I am in the process of trying to provide my significant other with a best “guesstimate” of my expenses for a season of racing.

Lie, lie, lie!!! My wife has found that ignorance is bliss!!

Spread sheet on the way.......


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Jeff L
#74 ITB GTi

[gran racing]

$20K to get into racing??

When looking at a racing budget, there is a big difference between need and want. A generator, nice trailer, race built engine, using Hoosiers are all great but not necessary. But I guess that's why I'm still using a tow dolly. The best thing for a new person it simply get a car that is track safe and won't break all of the time then spend as much money on becoming a better driver.

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Dave Gran
NER ITB #13
'87 Honda Prelude si

[JamesB]

I wouldnt say you need 20k. But other then selling my frontier and buying something that has a towing capacity like a 1/2 ton or 3/4 ton (running an open deck so I dont need a lot.) Which I only plan not to exceed my current car payment so thats not as big an issue.

But so far the car, safety gear, motor rebuild (stock not to max spec), trailer, random items, fees and other some such I would say its just over 8k initial outlay to get the car shake it down at an HPDE and go to the Fall drivers school.