Schools Training

Six Smart Money Moves for New Grads of Auto Mechanic Training

5 MAR 2012
Career Path : Automotive

Congratulations! You’ve always wanted to become a mechanic and now you’ve graduated from mechanic school. The future is bright… Or it can be, if you take some basic steps to nurture your financial situation from the moment you leave auto mechanic training.

1. Be patient

In today’s culture of fast food and instant messaging, we sometimes forget how much work is involved in meeting our most important goals. Don’t expect your living conditions to suddenly, magically upgrade the day you graduate from mechanic school. Trust me, your parents’ house didn’t always look so nice. They built up their wealth over time, and so must you.

2. Spend less than you make

You may not have read much Charles Dickens in mechanic school, but perhaps you should have. Dickens, whose father famously did time in debtor’s prison, wrote: “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.” This is a lesson best learnt before you become a mechanic!

3. Understand how much you make

What is your gross income? Your net? How often are you paid? What tax bracket do you belong to? What are your possibilities for advancement? Start asking questions about your financial position as soon as you leave mechanic school.

4. Negotiate your first salary

Your future raises will be proportional to what you first earn upon graduation from auto mechanic training, so take the time to figure out what a fair wage is for someone who has just become a mechanic.

5. Get into the habit of saving

Who says that all of your pay cheque has to go into your chequing account? Before you leave mechanic school, set up a no-fee, high-interest savings account online. When you finish auto mechanic training and secure your first job, arrange to have a percentage of your pay directly transferred to this account. Out of sight, out of mind. The first goal: build up three to six months’ worth of emergency savings to help you survive in the case of job loss or disability.

6. Learn the difference between planned spending and long-term saving

Putting aside money for your first summer vacation after graduating from mechanic school is wise, but it can hardly be called saving for your future. I know that you have only just become a mechanic, but it is time to start planning for your retirement. The earlier you start to save for your retirement, the less you will ultimately have to put in.

Trading in the world of mechanic school to become a mechanic in the working world comes with certain responsibilities. Taking control of your finances now will increase your chances of enjoying a profitable career.