ChooseFI Episode Show Notes: The Trades Path to Financial Independence

Episode Summary:
Exploring the trades path to financial independence reveals a wealth of opportunities often overlooked in the financial independence community. The guest discusses how trades like electrical work can lead to high-paying, in-demand jobs. Through a blend of practical experience and the right training, individuals can transition from entry-level positions to lucrative self-employment, often earning $70 an hour or more post-certification. The conversation underscores the importance of building connections, understanding financial education, and navigating the challenges of the trades.

Key Topics Discussed:

• Introduction to Trades
  00:00:39

  • Introduction by hosts Brad Barrett and Jonathan Mendonsa with guest Tinian Crawford (Captain DIY).
  • Discussion of the lack of representation of trades professions in the financial independence community.

• High Paying Trades
  00:02:33

  • Trades people often earn high hourly rates, with electricians starting around $70/hour.
  • Discussion on consumerism within the trades community as a potential barrier to financial independence.

• Importance of Financial Education in Trades
  00:05:06

  • Lack of financial education in trade schools and how this impacts tradespeople.

• Path to Electrical License
  00:11:10

  • Overview of the certification process including trade school and apprenticeships.
  • Tinian shares his personal journey into the trades.

• Starting Your Own Business as a Tradesperson
  00:24:02

  • Discussion on the ease of starting a trades business.
  • Tinian's transition to self-employment and determining appropriate rates for services.

• Building Relationships in the Trades Community
  00:34:42

  • Importance of networking and building connections to secure job opportunities.

• Conclusion and Takeaways
  00:53:30

  • Summary of valuable insights and encouragement for listeners to explore trades as a viable path to financial independence.

Key Quotes:

• "People willingly pay professionals well for home services." 00:04:16
• "Surprisingly, high-paying trades professions are often overlooked." 00:04:27
• "Getting into trade school is accessible—just a pulse and a pen required." 00:13:44
• "Starting your own trades business is straightforward and lucrative." 00:24:02
• "Expect a flow of work once you gain some experience and connections!" 00:28:27

Actionable Takeaways:

• Research and connect with local trade schools to begin your journey in trades. 00:13:44
• Consider working part-time in a trade while maintaining a day job to build skills and clientele. 00:28:27
• Actively focus on networking within the trades community to find job opportunities. 00:34:42

Related Resources:

• DIY to FI Blog 00:44:11
• Mad Scientist Podcast 00:36:35
• The Burrito Bowl Diaries 00:45:07

Discussion Questions:

• What skills do you think are most important in the trades? 00:05:06
• How can financial education impact someone working in the trades? 00:05:45
• What are the pros and cons of starting your own business versus working for someone else? 00:24:02
• What networks or communities have you found helpful in advancing your career? 00:34:42
• How does a person gauge financial independence while working in the trades? 00:35:14

Podcast Description:
Explore the overlooked opportunities within trades careers that can lead to financial independence. Learn from industry experts and practitioners about the path to becoming a well-paid tradesperson.

Episode Hosts:

• Brad Barrett
• Jonathan Mendonsa

Guest:

• Tinian Crawford (Captain DIY)

Exploring Trades Careers for Financial Independence

Achieving financial independence often seems like a complex journey, but it doesn't always require a traditional four-year college degree. There are promising avenues within trades careers that offer high salaries, job security, and even opportunities for self-employment. This article will guide you on how to tap into the potential of trades to bolster your journey toward financial independence.

The Value of Trades Careers

Trades careers are often overlooked in discussions about financial independence. However, they boast lucrative opportunities that can lead to substantial income without the burden of crippling student debt. Many tradespeople, such as electricians and plumbers, command hourly rates ranging from $70 to over $100, depending on skills and experience.

Why Choose a Trade?

1. High Earning Potential: Many trades jobs can quickly lead to earnings of $70 an hour or more after certification. With adequate experience, tradespeople can charge even higher for their services.

2. Accessible Education: Entering trade school is often more straightforward than attending traditional college. Many programs require little more than a high school diploma or equivalent.

3. Self-Employment Opportunities: Becoming a skilled tradesperson allows for the potential to start your own business. The transition to self-employment is often easier in trades than in other professions, with a steady flow of potential clients through word-of-mouth referrals.

4. Job Security: Skills in trade professions are always in demand. While trends may come and go in other industries, the need for electricians, plumbers, and carpenters remains constant.

The Path to Becoming a Tradesperson

1. Start with Research

Research local trade schools and programs to begin your journey. Look for institutions offering comprehensive courses in your area of interest, such as electrical work, plumbing, or HVAC.

2. Hands-On Training: Engage in apprenticeship programs once you complete your trade coursework. Apprenticeships generally last between three to five years and provide valuable, practical experience in the field while under the guidance of a licensed tradesperson.

3. Networking: Building a network within the trades community is crucial. Attend local trade events, connect on social media, and engage with other tradespeople. This will help you identify job opportunities and cultivate professional relationships.

4. Consider Side Gigs: If you're currently employed, maintain your day job while building your skills in the trades. Gradually taking on freelance work will allow you to grow your client base without sacrificing financial stability.

Essential Skills for Success

To thrive as a tradesperson, certain skills and traits will significantly enhance your career:

• Technical Proficiency: Mastering the technical skills specific to your trade is a must. Engage in ongoing education and hands-on practice.

• Problem-Solving: Trade jobs often involve diagnosing and fixing issues. Being quick on your feet and innovative can distinguish you in the field.

• Customer Service: Building rapport with clients can lead to repeat business and referrals. Develop strong communication and interpersonal skills for successful client interactions.

• Financial Literacy: Learn the basic principles of financial education to manage your income and expenses effectively. Successful tradespeople understand how to maximize earnings and budget for costs associated with running a business.

The Financial Impacts of Choosing a Trade

Managing Student Debt

Many trades programs can be completed in one year, significantly reducing education costs compared to a traditional four-year college degree. While a trade program might cost around $25,000, students often earn while learning, which can help mitigate the burden of student debt.

Increasing Earnings Post-Certification

Upon completing your training and obtaining a license, your income prospects can soar. Starting at around $20 an hour, licensed tradespeople can see significant wage increases depending on their clientele and specialization.

Freelancing for Greater Income

Once you build sufficient experience, consider transitioning to self-employment. Freelancing allows for setting your rates and creating your schedule. Establishing yourself as a trusted tradesperson can lead to steady work without the constraints of traditional employment.

Building a Strong Network

Building relationships within the trades community is invaluable. The more connections you have, the more job opportunities you will uncover. Collaborate with other tradespeople, seek referrals, and don’t hesitate to ask for recommendations when needed; your network is your net worth.

Conclusion: A Viable Path to Financial Independence

Embracing a career in trades can pave the way for financial independence without the financial pitfalls often associated with traditional higher education. With significant earning potential, opportunities for self-employment, and a community of support, pursuing a trades career is an often overlooked avenue worth serious consideration. Engage fully, invest in your education, and cultivate your network. The future is bright for those willing to take the plunge into the trades.

If you're considering a career in trades, begin your journey today—research local trade programs, connect with experts, and push past the barriers to start your rewarding journey toward financial independence.