How to Budget Your Wage as an Apprentice

GLP Training
Jun 28, 2024
1 min read

Managing your wage as an apprentice is crucial to ensure you can cover your expenses and save for the future.

Starting as an apprentice is an exciting time. You’re learning new skills, getting hands-on experience, and for many, earning a wage for the first time. Therefore, here’s a comprehensive guide to help you budget your wage as an apprentice:

Step 1: Understand Your Income

Calculate Your Net Income

Determine your monthly take-home pay after taxes and any other deductions.

Include any additional income, such as part-time jobs or allowances.

Step 2: Track Your Expenses

Fixed Expenses

Rent/Mortgage: If you live on your own or contribute to household rent.
Utilities: Electricity, water, gas, and internet.
Transportation: Car payments, insurance, fuel, public transport costs.
Insurance: Health, car, renter’s insurance.

Variable Expenses

Groceries: Food and household supplies.
Dining Out: Restaurants, cafes, and takeout.
Entertainment: Movies, concerts, streaming services.
Personal Care: Haircuts, toiletries, gym memberships.
Clothing: Work attire and personal clothing.

Irregular Expenses

Car Maintenance: Oil changes, repairs.
Gifts: Birthdays, holidays.

Step 3: Create a Budget Plan

List Your Expenses

Write down all your fixed, variable, and irregular expenses.
Use a budgeting tool or app to help you categorise and track these expenses.

Allocate Funds

Essentials First: Ensure all your fixed expenses are covered.
Savings Next: Aim to save at least 10% of your income if possible.
Discretionary Spending: Allocate funds for entertainment and personal spending after covering essentials and savings.

Step 4: Implement the 50/30/20 Rule

1. Essentials (50%)

- Spend no more than 50% of your net income on essential expenses.

2. Wants (30%)

- Allocate 30% of your income to discretionary spending.

3. Savings and Debt Repayment (20%)

- Save and use this portion to pay off any debts.

Step 5: Monitor and Adjust

Track Your Spending

Regularly update your budget with actual spending to ensure you’re staying on track.
Use apps like Mint, YNAB, or even a simple spreadsheet.

Review Monthly

At the end of each month, review your budget.
Adjust categories as needed and identify areas where you can cut back.

Plan for the Future

Set financial goals, such as saving for a car, emergency fund, or further education.
Regularly assess and adjust your budget to align with these goals.

Step 6: Tips for Success

Automate Savings

Set up automatic transfers to your savings account to ensure you’re consistently saving.

Limit Impulse Purchases

Avoid shopping when you’re emotional or bored.
Create a 24-hour rule for non-essential purchases.

Use Cash for Discretionary Spending

Withdraw a set amount of cash for entertainment and dining out to help you stick to your budget.

Find Discounts and Deals

Look for student or apprentice discounts.
Use coupons and buy items on sale.

Build an Emergency Fund

Aim to save at least three months’ worth of living expenses for unexpected situations.

By following these steps and regularly reviewing your budget, you can effectively manage your wage as an apprentice. This not only helps you meet your current needs but also sets a strong foundation for your financial future.

And if you have yet to explore our apprenticeship opportunities here at GLP Training, then do not hesitate to click the link below to start earning your new wage:

Explore More