How to build financial security after your apprenticeship

You’ve been hard at work for a few years now, learning everything you can about your trade. But in that time, life’s changed. Now that you’re qualified, your priorities might have changed. Maybe you’re thinking about moving somewhere new, giving self-employment a crack, or saving for a house.

We’re with you the whole way. Let’s see what you should expect now that you’ve finished your apprenticeship.

1. Should I stay or should I go?

There are pros to staying put: you know all the good sandwich shops, you’ve made friends with the crew and you like the security. But broadening your experience somewhere else might appeal, too.

When you first began your apprenticeship, it’s likely you and your employer would have signed a training contract, which outlined the terms of your employment. Now that you’ve finished your apprenticeship, your current boss may offer you a permanent job in a more senior role – but that might not be a guarantee.

2. Expect to earn more.

You’re qualified! After you’ve finished celebrating, get excited about an impending pay rise. With your apprenticeship completed, you can expect to earn a higher hourly rate of pay.

Some employers will want to negotiate this rate with you privately, so it’s worth having an idea of what other trade qualified workers in your field are earning. Talk to other tradies, check out what’s being offered on recruitment websites or take a look at specialist pay scale sites for an idea of current hourly rates in your location and industry.

3. You could become a licensed contractor.

Another option is to work for yourself. That means setting your own hours, choosing your own clients and getting your logo embroidered on a fancy shirt.

This usually calls for you to be a licensed contractor, however different types of license are available. The Department of Fair Trading (or its equivalent in your state/territory) sets out the process for becoming licensed.

There are some costs involved in establishing yourself as a contractor. You may be required to have public liability insurance in place – electrical contractors in particular are usually required by law to be insured which protects you financially if anyone tries to make a claim against you for damage to property or injury to themselves as a result your work. You’ll also be responsible for other running costs like maintaining your tools, getting help with your taxes and keeping your digital presence up to date.

4. Look into sub-contracting.

This is somewhere between being an employee and running the show. As a sub-contractor, you’re independent but working for an established business. Plenty of tradespeople choose this option – it can mean less time spent looking for work, less direct contact with clients and is a great way to build a professional network. Plus, someone else takes care of all the admin stuff for the job.

It can involve working exclusively for one contracting firm or you may sub-contract to a variety of individuals or businesses that need your trade skills. The licensing requirements for sub-contractors vary between states, and you may still need public liability cover.

5. Take control of your finances.

Whether you choose to move into self-employment or stay where you are, you’ll need the right financial products. That could mean looking into business accounts, superannuation funds and cash flow assistance like credit cards or loans. ME can help you figure out what’s right for you.

Remember, if you do choose self-employment, you’ll be responsible for managing your own tax and superannuation. It’s important to have the discipline to regularly set money aside for these outgoings.

Becoming qualified in your trade is no small feat. There are many exciting years ahead, whichever path you take.