It's unfortunate that many of us still operate in a flat-rate work environment. Meaning, that we only earn when we produce. I've worked in that world for the majority of my 23-year tenure in the shop. There is plenty of money to be made when the work is there. But not so much, when the parking lots are barren. Planning is what it takes to minimize stress and secure your financial future. I don't have all the answers, but I will share with you what has worked and still works for me.

I won't knock flat rate pay plans entirely. With a properly operating shop, the appropriately sized staff on hand, and fairly distributed work, the flat-rate world can benefit everyone. A hard-working technician can double or even triple their income (I know because I have done it for years). However, some of us are fortunate enough to work on a more stable pay plan, and realize what our earnings will be, regardless of how the rest of the shop operations fall into play.

Command your money where to go

Either way, money is a tool. It's there to take care of our loved ones, and our financial responsibilities and allows for some toys, or rest/relaxation. But in the wise words of Dave Ramsey:

“If you don’t tell your money where to go, it will find its own way.”

I’ve worked in shops where two arbitrary technicians had the same financial opportunities and capabilities. However, one of them earned half of what the other earned. Yet, the tech with more earnings was financially strapped for cash, and the other was not. It is a matter of perspective. If you are anything like most technicians I encounter, you lack a financial plan. Don’t worry, it’s not your fault. You were likely never taught about how money works (or more specifically, “Compound interest”).

Ask yourself what you do when you earn an unusually large amount over a single pay period. If you are like most, you use that money as a reward and purchase something you normally wouldn’t. Then, the following week (when times are tough, again) you stress over a lack of income. Don’t worry, this is not your fault either. You’re not alone and there is good news ahead.

Where do you stand?

The best thing I could’ve ever done for myself is make a list of earnings vs expenses. Most of you will be shocked to see that you spend all (if not, "more") that you earn. I was there once, and it scared me to death. But, at the same time, it empowered me to make a change.

I allotted all of what I earned to take care of monthly expenses. It also meant being honest with myself so I can plug the holes in the buckets I was attempting to fill (that's an awesome analogy to visualize the insanity that many of us exhibit each week). It will mean getting your spouse or partner on board because it is a team effort. When you get to the point that your bills are taken care of and there is some residual income, devote that towards extra payments on principal balances. Begin systematically and tirelessly aiming to eliminate the negative effects of compound interest. This includes a mortgage as well. You will be shocked to know that I saved enough money to pay almost 15% of my existing mortgage in a single additional-principal payment. It takes that kind of commitment to get yourself out of debt. Yes, it means holding off on the “new car” or “motorcycle,” for the time being.

Stay the course!

Now, comes the reward. More wise words from Dave Ramsey:

“Live like no one else, so you can eventually live like no one else.”

That powerful statement helps me stay focused to do things 95% of us will not do. After my bills have been paid entirely, my earnings will be placed in the hands of a trusted financial advisor. Now, compound interest will become my ally. I do this so when I’m retired, I can reap the rewards of financial freedom, and enjoy my older years, unlike 95% of us. Dave Ramsey’s teachings are the option I chose. But there are others out there. Be sure to seek out a financial advisor, establish a game plan, and hold true to your convictions. The best news is:

-It’s never too late to start

-This can be accomplished with any income

The key is gaining control of your money, instead of it having control over you. As it’s been said, “Nothing worth doing comes easy.” If you stay strong and dedicated your financial future will be secured. Make the change TODAY!