Beating Broke

Personal Finance from the Broke Perspective

The Pros and Cons of Working in the Auto Industry

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If you’re considering a career in the auto industry, you might wonder what working as a mechanic would be like. If you like cars and enjoy working with them, it may be the right career for you. Before you decide on an auto mechanic career, consider these pros and cons:

Fix Your Own Car

You may be offered a discount on auto parts for your own car. For example, a small auto part like a tire pressure gauge typically costs between $5 to $15. This amount may seem small, but several car parts can add a significant advantage as time passes. This can be a significant boost for your finances.

 No College Needed

Working as an auto mechanic doesn’t require a college education. You only need a love for cars and a willingness to learn. You may be fortunate enough to attend a vocational school where you’ll receive training and experience. If not, you can find a shop willing to train you once you graduate high school.

Fast-Paced Days

The volume of work at a typical mechanic’s business will ensure you won’t be bored. Each car will require your effort and concentration. Some auto jobs may take up to two hours to complete. You’ll be busy doing what you love for the whole day.

Job Stability

As long as there are cars, auto mechanics will always be needed. For example, NerdWallet estimates a car should have its oil changed at least every 5,000 to 7,500 miles. A job as an auto mechanic will give you job security and a wide range of garages where you could work. If you ever relocate, you should easily find a new job.

Of course, with any job, there are some cons. Check them out below.

Noisy Environment

A typical mechanics’ shop can seem very noisy to the uninitiated. There are drills, fans, hydraulic lifts, and many metal parts. You may be one of the lucky ones who find a noisy environment doesn’t bother you. If not, you’ll need to invest in good earplugs.

Safety Risks

Safety risks exist when working with autos and the machines that repair them. Be sure you ask for training if asked to do a task you need to become more familiar with. There’s always a risk when working under a lift or jack. Some auto parts still contain asbestos, and accidental asbestos exposure is possible.

Dirty

When you work in a mechanics’ shop, you must cover your clothes. No matter how carefully you work, you’ll likely get covered by oil, grease, or gasoline. While some auto shops may supply and launder your uniforms, some do not. If your uniforms aren’t provided, that’s an expense you’ll need to assume.

Strenuous Work

Working on a car is a challenge. Some tasks take less effort than others, but most are strenuous. You’ll use power tools, move tires, and handle large auto parts. The difficulty will depend on the tasks you’ll do during the day.

Stressful Job

In addition to the hard work and the dirt, a job as an auto mechanic can be stressful. A mechanic’s shop is open for extended hours and weekends, and you may be asked to work long hours. A recent survey of auto shop workers reported 20% of them spend five working hours each week thinking about how stressful their jobs are.

Before becoming an auto mechanic, consider these pros and cons. Also, ask a garage manager if you can visit their shop before working there. If you love cars, the pros will likely outweigh the job’s cons. Remember to do your research and

How Proper Planning Can Help You Manage Larger Expenses

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As you navigate adulthood, you realize how unpredictable managing your finances can be. You could be making a good amount of money, but the moment you’re faced with a large expense you could be forced to reaccess your budget again. Here’s how having a plan will make it easier to manage larger expenses.

1. Maintenance To Prevent Water Damage

Water damage is among the top reasons for home insurance claims. The risk of this type of damage rises as your house ages and the climate shifts. According to iPropertyManagement, 98% of basements experience water damage in different forms.

Plumbing issues such as rusted pipes to extreme events like coastal flooding can cause water to end up in places it shouldn’t be. The longer it stays there, the more it will cost you to address the issue. Homeowner’s insurance typically covers various types of water damage. However, some policies may only cover the issue if it resulted from an accidental and sudden cause like a burst pipe. In most cases, gradual damage and flooding are excluded.

Keeping up with your plumbing system’s upkeep will improve your repair efforts. Work with your local plumber to come up with a plumbing maintenance plan. They’ll consider the size of your home, the number of people living there, and other factors to recommend the best solution.

2. Estate Planning

For a surprising number of people, estate planning isn’t a top priority. 34% of people between the ages of 35 and 54, according to Caring.com, have never talked about estate planning with anybody. However, it’s one of the best ways of ensuring you can manage larger expenses in the future.

Without planning how you wish your assets to be distributed, you’re putting your loved ones at risk. If you were to pass away suddenly, the provisions of your default plan would be determined by the laws of the state in which you now reside. Your estate will be administered by a person the courts choose, which can be a costly process you can’t control. Estate planning involves various financial and legal documents.

Enlisting the help of a financial expert will make the process much smoother. They’ll help you account for all your assets, finances, and life situation. A financial professional will also simplify your trustee’s job by taking on most administrative tasks, which often get overwhelming. No matter your age or financial situation, consult an estate planning attorney to understand how you’ll benefit and ensure your loved ones are cared for even after your time with them ends.

3. Taking Action to Address Debt

Debt can have a significant impact on your ability to manage your finances. According to Hoke Law Firm, after standard deductions, creditors may garnish up to 25% of your income, according to Polston Tax. Do everything you can to avoid taking out credit and falling further into debt.

Set up an emergency fund for those unexpected expenses when making your budget. A great tip is saving at least six months’ salary in a bank account to ensure you have a plan to address whatever financial issues may arise. If you lose your job, suffer an injury that affects your ability to work, or require money for an unanticipated but necessary need, this will help cover your expenses.

You should also take your time to establish the difference between your needs and wants. Doing this will help you realize there’s always room to cut back. Holding yourself accountable and taking charge of your spending can help you keep your money in your hands.

Emergencies and unexpected expenses can make things difficult if you’re not prepared to promptly handle them. Hopefully, this guide will help you understand how planning is beneficial in making larger expenses manageable. Take the time to work on your financial planning and create a budget so you can stay in control over your finances.

5 Facts to Keep in Mind About Estate Planning

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Estate planning is a critical aspect of personal finance that allows individuals to protect their assets while providing for their loved ones and ensuring their wishes are honored upon death. Regardless of wealth, estate planning is an important process that everyone should undertake. There are many considerations to keep in mind when embarking on estate planning.

1. Seek Professional Guidance

Estate planning and personal finance decisions are often complex. As a result, they are often best addressed with the guidance of experienced professionals. Navigating the finer details of estate planning requires expertise in legal, financial, and tax matters.

When you seek professional guidance, you can feel confident that your estate plan is thorough. It will also be compliant with all laws and regulations. Your estate plan will also be tailored to your specific circumstances. Professionals such as estate planning attorneys, financial advisors, and tax specialists can provide valuable insights and help you make informed decisions to protect your assets and fulfill your goals.

2. Keeping Your Plan Current

Once you have created a comprehensive estate plan, it is recommended that you update your estate plan once every five years unless significant life events occur, such as marriage or relocation to another state. By maintaining an up-to-date estate plan, you’re ensuring that it reflects changes in your circumstances. This is also the best way to make sure that your estate plan is in alignment with your wishes.

As your personal finance outlook changes, your estate plan may also need to change. By revisiting your plan regularly, you can ensure that it remains relevant, addresses any new considerations, and adapts to the evolving needs of your family and beneficiaries.

3. Estate Planning is for Everyone

Approximately 77% of American adults believe that estate planning is important for everyone, regardless of their wealth, according to LegalZoom. Estate planning goes beyond wealth preservation. It is an important strategy to protect your assets and provide for your loved ones. You’re also able to have control over the distribution of your estate.

Regardless of the size of your estate, estate planning allows you to ensure that your wishes are respected and reduces potential conflicts among beneficiaries. As your personal finance situation changes, your estate plan can change with it.

4. Estate Tax Exemptions

You are exempt from federal estate taxes as long as your estate is valued at more than $5.43 million (or $10.86 million for a married couple). When you have an understanding of estate tax thresholds, you can create a more effective estate plan.

By staying within the exemption limits, you can reduce the potential tax burdens on your estate. This also means that you’re able to maximize the amount passed on to your beneficiaries. However, it is important to consult with a professional to comply with tax laws and make the most of any strategies that provide savings on taxes.

5. Common Pitfalls to Avoid

There are some common pitfalls in estate planning. They often include inadequate beneficiary designations, failure to update documents, and poor communication among family members. To avoid these problem areas, a comprehensive estate plan should include updated beneficiary designations and regular document reviews.

You should discuss your wishes openly and transparently with your family. This helps prevent misunderstandings and allows your estate plan to be executed smoothly. Estate planning is a constantly changing process. It would be best if you revisited it regularly as your life changes.

You must invest time and effort into effective estate planning. This allows you to have financial security, protect your legacy, and provide peace of mind for yourself and your loved ones. Most importantly, you want to review your estate plan regularly.