Financial Tips for New Grads of Mechanic Training
Career Path : Automotive
Congratulations, you are almost finished your mechanic training. A time for celebrationâ¦ and financial planning.
1. Calculate your âlife pieâ after you become a mechanic
Canadian personal finance guru Gail Vaz-Oxlade recommends that you keep your spending on certain categories within certain percentages:
- spend 25% of the money you make after mechanic training on life
- no more than 35% on housing
- 15% on debt repayment
- 15% on transportation
- at least 10% on saving for the future
Use these guidelines to assess your spending after you become a mechanic. Can you afford your rent or mortgage payment? Do your transportation choices make sense in terms of your budget? Do you even know how much 10% of your take-home pay would be? These are the kinds of questions that it is imperative to ask as soon as you land your first job after mechanic training.
2. Make a budget
Landing your first job after you become a mechanic can give you the impression that your are rolling in cash. Especially after all those macaroni dinners you ate while in mechanic training. But the best way to make sure that your money doesnât just run through your fingers is to make a plan. Thatâs all a budget is, a plan for how you will use each and every dollar of your pay cheque. If that sounds limiting, itâs not. Because a sound budget always includes money for entertainment.
3. Invest in disability insurance and life insurance
Do you think that as a new graduate of mechanic training that you are too young to buy disability or life insurance? Think again. The sooner after your mechanic program that you do it, the better. Insurance is much more affordable to buy when we are young and in good health, savings that continue as we age. So, do yourself a favour and buy some insurance as soon as you become a mechanic.
4. Make a five-year plan
Ok, so youâve become a mechanic, but where do you want to be five years after mechanic training? When youâre in a mechanic program, youâre so focused on one goal â graduation â that you can forget to work on your longer-term plans.
- Would you like to open your own garage?
- Would you like to use the skills learned in your mechanic training to travel to other locations for work?
- Would you like to become a homeowner?
These are the kinds of questions you should ask yourself after you become a mechanic to ensure that your financial house stays in good order.