Ever since my wreck at Infineon, I've been taking a close look at my finances as they relate to racing. I can clearly see now that one mistake I made in getting started was that I did not limit my budget. I had a limit in mind, but I pretty much had the attitude that if I needed something, it was getting bought ... because I needed it. Even though my car was legal and running, I was still doing some development on it and spending well over $1k/mo in total racing costs. Now that I've been able to look back and track those expenses, I was clearly over what my budget should have been. Things were starting to get piled on the credit cards and it started to affect other areas of our discretionary spending. After looking closely at what I could realistically afford without sacrificing my long term investments, using credit cards, or cramping the lifestyle that my wife and I are accustomed to, I came up with $700/mo as my budget.

So .... here's the new strategy. I opened a checking account w/ the CU at work. I will have $700 deducted from my paycheck every month ($350 semi-monthly) and put into that account. That money will become my entire racing budget. I have a debit card that can be used to withdrawl money from that account directly, so I should be able to easily track purchases on-line, at gas stations, for event registrations, etc. The idea is that if there is no money in the account to pay registration fees, I don't race. If I need something for the car, but there's not enough money in the account, I don't buy it until there is. If it's saftey related, I don't race until I can afford it. You get the idea.

Anyway, there are 3 reasons that I'm sharing this with all of you:
1) I want to know if anyone is doing something similar and how well it has worked out for them.
2) To see if people think it's fesible to run H4 on $700/mo.
3) To see if people are interested in this experiment. If so, I can provide updates along the way as to how the system is working.

As for #2, I am basically starting with a fully built, sorted, and race ready car that shouldn't need much development. I have 2 new sets of toyos and a considerable spares package for the car. Food/logding costs are negligable since I stay with my in-laws when racing in Phx. Assuming 1 race weekend per month, the way I see recurring expenses will be thus:

$330/mo - registration fees
$150/mo - wheels/tires/bearings/lugs
$ 30/mo - brake pads
$ 70/mo - gas for tow vehicle and race car
------------
$580/mo - total consumables/fees

This does not take into account any Toyo rebates or registration fee rebates that can be won each weekend. I figure that long term wear items like seat, belts, etc or one-time expenses like traveling out of region can be taken care of by money that would accumulate during our 4 month off season. Feel free to discuss and let me know what I've missed or if you think things will be more/less expensive.

- Scott

 

$700/month should be enough to race. I think most people will tell you about $1000-$1500 per race to be competitive in a small-bore IT car. You probably won't be able to run an entire 10-event series on it, but you should be able to run 4 or 5 well chosen events and maybe even an enduro.

If you are strict enough to only use the racing account, you'll be way ahead of a lot of new racers.

 

To run a DA Integra like the one you have now requires about $1200 to run per race weekend. Plus if you break something bad like the car or the engine.

 

scott....i love your idea....

but...i race pretty much every other weekend...that is 500 in just entries right there....

tires.....800 every other month

gas 75 bucks a weekend just for the race car

towing....550 last weekend.....

food at the track....

hotel

i really don't see how a full season on 700 a month will do....

now if you had that 8400 there at the begining of the year and raced till it was gone...that might work....

700 is alittle low in my opinion....

and brakes...and fluids....drinks at the track, ice...snacks....

dang it all adds up quick...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by FlyZlow &raquo;</TD></TR><TR><TD CLASS="quote">1) I want to know if anyone is doing something similar and how well it has worked out for them.</TD></TR></TABLE>

Scott, it's the only way I can race (says Mrs. johng). I have basicaly $400 per paycheck (every two weeks) as my "allowance". I can do whatever I want with it. It sounds like a decent amount of money and it works okay up to a point, but you really need to have discipline with it because you just can't afford to buy a lot of extra stuff during the season. It goes really fast. In fact, I think I'm done for the year. I just bought another motor/tranny for $500, and our next race is in two weeks. Make sure you stock up on brake pads/rotors in the off season.

The off season is where you need to focus and spend wisely. My problem is, if I have money, I'll find something to spend it on (read big *** tool box purchase right before the Infineon trip). That's why I'm on the "allowance" program.

$.02

 

The gas/diesel is the killer right now. I spent about $250.00 on diesel and $125.00 on gas for last weekend. Of course that included a 3 hour enduro, but the $250.00 on diesel did not change. Depends on how far you will be driving to events. If you stay close to home it will be easier.......

 

There are ways to cut cost. If you have no qualms about camping then it'll greatly reduce hotel expenses. Try looking at companies like Chase or Discover who offer cash back on gas purchases. (My brother has a Chase card that gives 5% off gas prices.)

Those little pennies can add up to save money.

 

This is an excellent post, thanks for sharing.

I'm pretty limited at the moment for two reasons. Contracted job is up in the air until October 1st, and rental appartment is unoccupied until... yep you guessed it, October 1st.

Hopefully once finances become a bit more stable, I'm going to adopt your plan, however I'm thinking the budget will be a little lower per month. For obvious reasons, I will be making it to fewer events then what you have budgeted. So far I made a school, a double event (VIR), and a day trip to Pocono with NASA-NE. (Plus 4 or so regional autocross events). If things go well, I'll hit the last MARRS race of the year.

Thanks again for so clearly defining your racing budget!

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by FlyZlow &raquo;</TD></TR><TR><TD CLASS="quote">The idea is that if there is no money in the account to pay registration fees, I don't race. If I need something for the car, but there's not enough money in the account, I don't buy it until there is. If it's saftey related, I don't race until I can afford it. You get the idea.
</TD></TR></TABLE>

That phrase sums it up... priceless.

 

Just to add on... I might steal your idea of a racing account. Its not copyrighted yet is it. It'll definately help me keep my racing budget in check and not spend endless amounts like I've done a few times this year.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by FlyZlow &raquo;</TD></TR><TR><TD CLASS="quote">
So .... here's the new strategy. I opened a checking account w/ the CU at work. I will have $700 deducted from my paycheck every month ($350 semi-monthly) and put into that account. That money will become my entire racing budget. I have a debit card that can be used to withdrawl money from that account directly, so I should be able to easily track purchases on-line, at gas stations, for event registrations, etc. The idea is that if there is no money in the account to pay registration fees, I don't race. If I need something for the car, but there's not enough money in the account, I don't buy it until there is. If it's saftey related, I don't race until I can afford it. You get the idea.

- Scott</TD></TR></TABLE>

This is almost exactly what I am doing. I find that a spreadsheet helps me keep even this in check, as if you run ~$100 short for a race weekend at the last minute, you ARE going to spend it. I had a grand plan to track exactly how much I spent on racing, and did so, but was derailed by a wreck in terms of knowing how much it costs me per race.

If anyone wants a copy of the spreadsheet, pm me. I have shared it around before, but if you haven't seen it, it helps me a tremendous amount.

I agree with Crack Monkey, $700 per month is probably not enough for a full season, but it is enough to have a lot of fun with. Good luck!

 

We run our DA for about 800/mo, so it is totally possible. We have to go without a few fancy things, but it is worth it to have affordable racing.

Of course, this doesn't count for car upgrades , just operational costs and maintenence.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by RacerBowie &raquo;</TD></TR><TR><TD CLASS="quote">I agree with Crack Monkey, $700 per month is probably not enough for a full season, but it is enough to have a lot of fun with. Good luck!</TD></TR></TABLE>

My last attempt to get a budget together allowed me about 4 races a season. But, that was renting a car for all events, with room in the budget to run doubles or enduros for two of the four events.

It turned out renting a racecar cost $300-$600 more per weekend than owning, but if I wanted to run enduros, I'd be renting anyways. I couldn't justify owning my own car for two or three regionals a year.

Now, if I can get the wedding and honeymoon over with, get the maintenance on the two street cars up to date, and finish the landscaping around the house, I might actually be able to implement that plan.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by gotocrx &raquo;</TD></TR><TR><TD CLASS="quote">We have to go without a few fancy things, </TD></TR></TABLE>

Without fancy things? Hello... Mr. ultra-behemoth motorhome.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by johng &raquo;</TD></TR><TR><TD CLASS="quote">

Without fancy things? Hello... Mr. ultra-behemoth motorhome.
</TD></TR></TABLE>

Yeah yeah. That doesn't count though, my dad has had that forever, before we started racing. That 800 does include the diesel to feed the beast though.

When I was racing by myself, I actually could get it down to about $500 a weekend with a borrowed truck, a tent, and my old little H5 crx(seen at left). That is REALLY cheap racing!

 

I have been racing this way for the last four years. I have only me to convince if I need a part for the car. Nobody will believe this but my budget was $500.00 month. Not the first year when building the car, of course. Note, I never ran a full season (13 races, ICSCC). I ran mostly six races and nine being the most. I think there are a lot of factors besides budget.

Mainly your life style outside of racing. I gave up a lot for racing. I feel I gave up a S2000 sitting in my driveway. I used to go out with the guys drinking a lot, that stopped.(I think this is the reason the wife puts up with the racing). Other things as well like snow skiing, small trips through out the year, electronic(computer stuff) I like to buy. I also completed the build of the car before I got married,lol.

A big factor is in how much you do and how much you pay someone to do it. I did all the fabrication except the cage and paint (which I did prep myself).

Which class you run in. The first three years was GP (H5, ITC or ITB to make it easier). Tires would last all season. Brakes would make it half the season. Two sets of rotors the whole season (I had the facility to turn rotors, alignment rack, mount and balance tires). Granted my whole season was six to nine races.

How far you have to travel and how comfortable you like to be. I mostly raced Portland and Seattle. Portland I could sleep in my own bed. Seattle was 2.5-3 hours drive and some cheap nice hotels near by. Wasn't that big of deal. I would have slept in the truck if the wife didn't come along. Since she liked getting out of town now and then the hotel was not paid for with the race budget money. After the noob-panic effect rubbed off we started skipping going up on Friday nights (to save one night hotel fee) and drive up early Saturday morning. Worked out great.

Of course if you have a big fat income you can forget about this and have your local Tuner Shop bring your prepped car out for you. No, I'm not mad just jealous. I would if I could.
Another thing that could blow this race budget is an accident, LOL. Accident n race in the same sentence, that's not even funny. Or if you forget the @#*%$ hood pins and destroy your hood, wind shield and roof. Your in N.Cal and don't have any of your local nice friendly vendors to give the install for $100.00 instead it cost $300.00 and you didn't even have any moulding to put back in. Again not mad just sore.

For me it is a Ying & Yang thing. I get a lot of Ying out of racing so I don't spend a lot of Yang on other things.

Good Luck

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by gotocrx &raquo;</TD></TR><TR><TD CLASS="quote">Of course, this doesn't count for car upgrades , just operational costs and maintenence.</TD></TR></TABLE>

Thats why i'm building the car while i'm still instructing..... I'm hoping that the car is finished when it comes time to start racing - then i can focus on budgeting the racing part and just driving it

 

Great post.

In my line of work (sales) it is very difficult to create a "budget" based on the fact that I see major fluctuations in monthly income. Some months I can't stuff money into a "race" account and some months I can pay for 4 race weekends with change to spare.

I try my best to "budget," but usually it comes down to a big paycheck and being able to buy this or that for the race car and having money to go race.

 

I didn't know you bought a DA, that's cool You're plan will provide $8400 per year. I only take home about $10000/year (I'm a student that lives at home) and I manage to race a DA Integra and not all of that money goes to racing. I'm not able to run a full season mostly because I don't have time. I think I could swing a full season if I didn't make an expensive trip out of town and wreck my car as well. The trip was worth it though and I'll be back next year.

My car is certainly not the fastest but it's decent. I don't have the experiance to win anyway.

 

I start the year with a set budget, if I'm going over budget because of a break or a crash then a weekend comes off the schedule. If gas prices double...

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by FlyZlow &raquo;</TD></TR><TR><TD CLASS="quote">I had a limit in mind, but I pretty much had the attitude that if I needed something, it was getting bought ... because I needed it. </TD></TR></TABLE>

Yeah, I used to do this too.
How fast this attitude can get out of control becomes very evident if you try something like a $2006 Challenge car. The parts I would normally have bought in a week took 4 months to acquire because I had to hunt for deals.

I've decided to take this approach from now on. I have to admit that $300 Konis, a $25 header and $22 Eibachs have gotten my complete attention.

Scott, who found some AWESOME Infinty and Alpine speakers (along with $1.88 in loose change ) in the CRX today and got a little too happy about it.

 

So $700 per month is the same as $8400 per year? And one season per year, so that amount to spend per year, after the car is built?

That's actually about right. My budget is $7K per year and I don't tow very often at all. Re-shelling the Golf is burning up the SIC and VIR 13 Hour budgets - so we ain't goin' there - and I have permission from the finance minister to go into deficit spending against next year if necessary.

Is your tow vehicle JUST a tow vehicle and, if so, what does it cost per year? You may be shocked to find out how much gets piddled away on tools, paint, brake cleaner, and "stuff" that gets put in the garage. Keeping track of that, too?

K

 

Thanks for the replies, support, and suggestions guys. Realizing that $700/mo is on the very low end of what it takes to run every weekend of a season, I will try to be very budget concious. Since it seems like there is interest, I'll keep the thread updated for the first few months with how it's going. I'm thinking that if I start to run thin, what I might start doing is skipping days instead of whole weekends. For instance, I'll run every month, but only run either Sat or Sun. That would help me get my fix and cut costs roughly in 1/2.

I think that I probably underestimated fuel expenses at the current going rate. It is probably more like $120 per weekend. I get about 15mpg towing with my 4Runner and I tow about 120 miles each way to Phoenix for most of the races. The 4Runner is also my daily driver, so I won't include it's expenses as part of my racing budget.

Like people have said, the one thing that the budget really leaves no room for is breaking stuff or crashing. Anything like that will cost me events unless I've built up money by winning contingencies or during the off season or things like that.

I haven't yet decided if I'm going to take into account things like tools and cleaning products. Hopefully, as far as that stuff goes, I have pretty much all I need for a while. I don't think I'll count things like food and drinks at the track because I figure I'd have to eat anyway.

- Scott

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by FlyZlow &raquo;</TD></TR><TR><TD CLASS="quote">For instance, I'll run every month, but only run either Sat or Sun. That would help me get my fix and cut costs roughly in 1/2.
</TD></TR></TABLE>

It might reduce your costs by 1/3.

You still have to tow there and back; and your expenses while staying there/eating. The only thing you save on is the entry fee, tires and brake pads.

 

I've determined that I can't afford to actually race.

Scott, who, looking on the bright side, is able to afford a really well decorated shop...I'm saving up for a couch and a refrigerator...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by RR98ITR &raquo;</TD></TR><TR><TD CLASS="quote">Scott, who, looking on the bright side, is able to afford a really well decorated shop...I'm saving up for a couch and a refrigerator...</TD></TR></TABLE>

Just so you'll hate me, I have a couch and a fridge in my shop
I still need to install the toilet and sink though.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by johng &raquo;</TD></TR><TR><TD CLASS="quote">I have a couch and a fridge in my shop
I still need to install the toilet and sink though.</TD></TR></TABLE>

A couch. I don't think I would get half the things done if I had a couch in my garage. I would have to sit and think about what I would do next too much, lol.
I would think a sink would be number 1 on the list, so as to not get the rest of the house dirty.
A frig. would be nice so long as it wasn't stocked with beer, i would then have to nap on the couch thinking about what I was going to do next.

James who finds it amazing after a couple of minutes laying on a piece of carpet, under the car, on the cement garage floor, how sleepy and comfortable he gets.