{"id":426,"date":"2023-09-03T16:39:07","date_gmt":"2023-09-03T20:39:07","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/?post_type=chapter&#038;p=426"},"modified":"2024-11-19T05:31:05","modified_gmt":"2024-11-19T10:31:05","slug":"why-skilled-trades-are-best-pathway-to-financial-independence","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/chapter\/why-skilled-trades-are-best-pathway-to-financial-independence\/","title":{"raw":"Why the Skilled Trades are the Best Pathway to Financial Independence","rendered":"Why the Skilled Trades are the Best Pathway to Financial Independence"},"content":{"raw":"One of the keys to [pb_glossary id=\"254\"]financial independence[\/pb_glossary] is to \u2018live below your means\u2019.\u00a0 This methodology entails trying to not have any cash draining [pb_glossary id=\"452\"]debt[\/pb_glossary], saving as much as possible, and allowing those savings to compound exponentially through the longest time period.\r\n\r\nWhen one becomes a trade apprentice, one is on the best pathway to financial independence.\u00a0 Trade apprentices earn while they learn and have a salary while building their skills.\u00a0 Even if a potential apprentice is unable to secure a [pb_glossary id=\"455\"]sponsored employer[\/pb_glossary] right away, a [pb_glossary id=\"459\"]pre-apprenticeship program[\/pb_glossary] is usually a much shorter schooling period (less than one year) to attain the basic skills for employment.\u00a0 Some provinces allow students to begin a trade apprenticeship while still in high school.\r\n\r\nSome reasons the skilled trades allow ample opportunity for trade apprentices to pursue financial independence:\r\n<ul>\r\n \t<li>Stay away from high-interest rate debt with early paid training<\/li>\r\n \t<li>Save excess funds and take full benefit from [pb_glossary id=\"464\"]tax-advantaged accounts[\/pb_glossary]<\/li>\r\n \t<li>Gain soft skills directly in the workplace (eg. teamwork, communication, leadership)<\/li>\r\n \t<li>Learn hands-on trade skills to perform their own straightforward household maintenance and repair work giving them the opportunity for increased savings<\/li>\r\n \t<li>Attain Provincial\/Territorial skilled trades certifications that are recognized and in-demand worldwide<\/li>\r\n \t<li>Build a network of contractors and other trade industry personnel to learn from and assist with future projects<\/li>\r\n \t<li>Progress rapidly to becoming self-employed or starting a trades-related business<\/li>\r\n<\/ul>\r\n[pb_glossary id=\"1190\"]Financial literacy[\/pb_glossary] is not a topic traditionally emphasized in the formal education school system or in technical training for trades.\u00a0 This resource will outline steps for a trade apprentice to take on the splendid journey towards [pb_glossary id=\"242\"]financial freedom[\/pb_glossary].","rendered":"<p>One of the keys to <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_426_254\">financial independence<\/a> is to \u2018live below your means\u2019.\u00a0 This methodology entails trying to not have any cash draining <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_426_452\">debt<\/a>, saving as much as possible, and allowing those savings to compound exponentially through the longest time period.<\/p>\n<p>When one becomes a trade apprentice, one is on the best pathway to financial independence.\u00a0 Trade apprentices earn while they learn and have a salary while building their skills.\u00a0 Even if a potential apprentice is unable to secure a <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_426_455\">sponsored employer<\/a> right away, a <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_426_459\">pre-apprenticeship program<\/a> is usually a much shorter schooling period (less than one year) to attain the basic skills for employment.\u00a0 Some provinces allow students to begin a trade apprenticeship while still in high school.<\/p>\n<p>Some reasons the skilled trades allow ample opportunity for trade apprentices to pursue financial independence:<\/p>\n<ul>\n<li>Stay away from high-interest rate debt with early paid training<\/li>\n<li>Save excess funds and take full benefit from <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_426_464\">tax-advantaged accounts<\/a><\/li>\n<li>Gain soft skills directly in the workplace (eg. teamwork, communication, leadership)<\/li>\n<li>Learn hands-on trade skills to perform their own straightforward household maintenance and repair work giving them the opportunity for increased savings<\/li>\n<li>Attain Provincial\/Territorial skilled trades certifications that are recognized and in-demand worldwide<\/li>\n<li>Build a network of contractors and other trade industry personnel to learn from and assist with future projects<\/li>\n<li>Progress rapidly to becoming self-employed or starting a trades-related business<\/li>\n<\/ul>\n<p><a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_426_1190\">Financial literacy<\/a> is not a topic traditionally emphasized in the formal education school system or in technical training for trades.\u00a0 This resource will outline steps for a trade apprentice to take on the splendid journey towards <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_426_242\">financial freedom<\/a>.<\/p>\n<div class=\"glossary\"><span class=\"screen-reader-text\" id=\"definition\">definition<\/span><template id=\"term_426_254\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_426_254\"><div tabindex=\"-1\"><p>the state of having enough assets and\/or passive income sources to cover one\u2019s living expenses in perpetuity, without support from further employment.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_426_452\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_426_452\"><div tabindex=\"-1\"><p>an asset, usually money, that is owed or due<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_426_455\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_426_455\"><div tabindex=\"-1\"><p>organization that commits to ensuring a trade apprentice receives high-quality on-the-job instruction and progresses through the apprenticeship education program outlined by the Provincial or Territorial Apprenticeship Authority<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_426_459\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_426_459\"><div tabindex=\"-1\"><p>educational theory and hands-on work program, usually encompassing several months up to a year, that assists new entrants into the Trades preparing them to find work as an apprentice<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_426_464\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_426_464\"><div tabindex=\"-1\"><p>any type of investment, financial account, or savings plan that is either tax-exempt, has the ability to defer tax, or offers other tax benefits<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_426_1190\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_426_1190\"><div tabindex=\"-1\"><p>having the knowledge, skills, and confidence to make responsible financial decisions<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_426_242\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_426_242\"><div tabindex=\"-1\"><p>the state of having enough assets or passive income sources to cover one\u2019s living expenses perpetuity without support from further employment.\u00a0 Also called financial independence<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><\/div>","protected":false},"author":1780,"menu_order":3,"template":"","meta":{"pb_show_title":"on","pb_short_title":"Why Skilled Trades is Best Pathway to Financial Independence","pb_subtitle":"","pb_authors":["anne-lee"],"pb_section_license":"cc-by-nc-nd"},"chapter-type":[48],"contributor":[61],"license":[58],"class_list":["post-426","chapter","type-chapter","status-publish","hentry","chapter-type-standard","contributor-anne-lee","license-cc-by-nc-nd"],"part":151,"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/users\/1780"}],"version-history":[{"count":18,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/426\/revisions"}],"predecessor-version":[{"id":1201,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/426\/revisions\/1201"}],"part":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/parts\/151"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapters\/426\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/media?parent=426"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/pressbooks\/v2\/chapter-type?post=426"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/contributor?post=426"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/wp-json\/wp\/v2\/license?post=426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}