Thinking about becoming an electrician? Whether you’re just starting as an apprentice or you’re already a journeyman, one of the most important questions you need to ask yourself is: Can you actually afford to be an electrician? This isn’t just about the wages you see advertised or the glowing testimonials about six-figure salaries in the union. It’s about understanding your real financial needs, the cost of living in your area, and how your paycheck stacks up against your monthly expenses.
Electrician U breaks down this essential topic by examining the cost of living and wage expectations for apprentices and journeymen in three very different cities: Austin, Texas; San Francisco, California; and Memphis, Tennessee. Whether you’re a young individual starting out on your own or a family provider, this guide will help you evaluate if a career in electrical work aligns with your financial reality.
Table of Contents
- Why Understanding Your True Cost of Living Matters
- Breaking Down the Cost of Living: Three City Case Studies
- What Wages Do You Need to Cover These Expenses?
- How to Calculate Your Own Required Wage
- Union vs. Non-Union: What’s the Difference in Pay and Benefits?
- Practical Tips for Financial Success as an Electrician
- Final Thoughts: Can You Afford to Be an Electrician?
- Frequently Asked Questions (FAQ)
Why Understanding Your True Cost of Living Matters
A common experience for those entering the electrical trade is taking a significant pay cut when starting as an apprentice. Apprenticeship wages often don’t reflect the skilled labor you’re learning to perform, and many people ask, “Can I really afford to take a cut like this?” The answer depends heavily on your personal expenses and the cost of living in your city.
It’s easy to get caught up in social media posts showcasing electricians earning $120,000 a year or more, especially union electricians with structured pay scales and benefits. But those figures don’t tell the whole story. The wages you start with, especially outside the union, often haven’t kept pace with rising living costs over the last 10 to 15 years. Some companies still pay new apprentices $15 an hour, the same rate they did over a decade ago, despite inflation and increased housing costs.
So, the first step is to understand what it really costs to live in your area and then compare that to what you’re being paid or expect to earn as an electrician.
Breaking Down the Cost of Living: Three City Case Studies
To get a clearer picture, let’s look at three cities with varying living costs: Austin, TX (a mid-cost city), San Francisco, CA (one of the most expensive places in the U.S.), and Memphis, TN (lower cost but still a city with realistic expenses).
Scenario 1: Young Adult Living Independently (18-24 years old)
Imagine you’re a young adult, living fully on your own. You’re not living with parents or multiple roommates; you have your own apartment, car, groceries, and basic essentials to cover. What wage do you need to cover your bills and survive?
- Austin, TX: The market rent for a one-bedroom apartment around Austin averages about $1,235 per month. Transportation costs, including car payments, insurance, and gas, come to roughly $850 monthly. Utilities add another $300–$330, groceries about $350, and basic discretionary expenses (toilet paper, clothing, hygiene) around $150–$200.
- San Francisco, CA: San Francisco’s housing costs are notoriously high, with rent and utilities being major budget busters. The total monthly cost here balloons to around $4,800, nearly double Austin’s expenses.
- Memphis, TN: Memphis offers a more affordable lifestyle, with total monthly expenses for a young adult around $2,500, making it the lowest of the three cities.
These figures represent minimal living expenses—no fancy dinners, no vacations, no extravagant spending. Just the essentials to live as an independent adult.
Scenario 2: Family Living Situation (25-34 years old)
Now, let’s consider a more complex scenario—a family with a spouse and two children. You have a mortgage instead of rent (about $3,000 per month in Austin), two car payments, child care expenses, credit card debt, and healthcare costs. Plus, your spouse contributes to the household income.
- Austin, TX: The total cost of living for this family scenario comes to about $8,500 per month or $102,000 annually.
- San Francisco, CA: The family living expenses here soar to nearly $7,900 per month, translating to around $95,000 annually.
- Memphis, TN: Memphis remains the most affordable, with family expenses estimated around $5,100 per month or $61,200 annually.
These numbers include essential savings buffers to prepare for emergencies or future needs, which are crucial for financial stability.
What Wages Do You Need to Cover These Expenses?
Now that we know the expenses, how much do you need to earn to cover them? Let’s translate those monthly bills into hourly wages so you can understand what to expect or negotiate.
Apprentice Electrician Wages
- Austin, TX: To cover living expenses as a young adult, you’d need to earn about $19.71 per hour gross (before taxes). This translates to roughly $675 per week at 40 hours.
- San Francisco, CA: The required hourly wage jumps to an eye-popping $32.50 per hour gross due to the high cost of living.
- Memphis, TN: The cost of living is lower, requiring a gross wage of about $16.94 per hour to make ends meet.
Keep in mind these are minimum wages to cover basic living costs. If you’re offered significantly less, like $12-$15 per hour in Austin, you may struggle to cover your bills without additional support such as roommates, living with family, or a second job.
Journeyman Electrician Wages for Families
For journeymen supporting a family, the wage requirements increase considerably:
- Austin, TX: You need to negotiate for about $33 per hour gross to cover family expenses.
- San Francisco, CA: The wage requirement is about $48 per hour gross.
- Memphis, TN: A journeyman needs approximately $24.59 per hour gross.
These are wages to support a family comfortably, including mortgage, daycare, healthcare, and savings.
How to Calculate Your Own Required Wage
Everyone’s financial situation is unique, so it’s essential to calculate your own cost of living and the wage you need. Here’s a simple step-by-step method to do this:
- List all your monthly expenses: Include rent/mortgage, utilities, groceries, transportation, insurance, phone, internet, credit card payments, childcare, healthcare, and any other regular bills.
- Add a buffer for savings and emergencies: Aim for at least 10% of your total expenses to cover unexpected costs and future savings.
- Calculate your annual expenses: Multiply your total monthly expenses by 12.
- Convert annual expenses to weekly costs: Divide the annual amount by 52.
- Calculate your hourly wage needed: Divide the weekly costs by the number of hours you work per week (usually 40 hours).
This final number is the hourly net wage you need to cover your bills. To find the gross wage you should negotiate, estimate your tax rate and adjust accordingly—usually adding 20% or more depending on your tax bracket and deductions.
For example, if you need $17 per hour net, you might negotiate for $20 to $21 per hour gross to account for taxes and other deductions.
Union vs. Non-Union: What’s the Difference in Pay and Benefits?
It’s important to understand the trade-offs between union and non-union electrical work:
- Union electricians often have set wage scales, which may start higher and increase predictably with experience. They typically receive comprehensive benefits such as health insurance, retirement plans (401K), and other protections. However, you have less flexibility to negotiate wages individually.
- Non-union electricians make up the majority of the industry (roughly 88-90%). They may have more varied wages, with some companies paying very low apprentice wages. Benefits can be limited or absent, and wages often do not keep pace with cost of living increases.
As an employer, it’s critical to consider whether you’re paying a livable wage to your employees and providing enough benefits to keep them motivated and financially stable. As an employee, knowing the difference helps you set realistic pay expectations.
Practical Tips for Financial Success as an Electrician
Whether you’re just starting or already working in the field, here are some practical tips to manage your finances and negotiate better wages:
- Know your expenses: Use a spreadsheet or budgeting app to track your monthly bills and income. Knowing exactly what you need helps you negotiate confidently.
- Negotiate your wage: Don’t accept the first offer without evaluating if it covers your cost of living. Use your calculations to justify your pay requirements.
- Consider your living arrangements: If wages are low, consider roommates or living with family temporarily to reduce housing costs.
- Avoid unnecessary debt: Manage credit cards responsibly and avoid taking on new debt that can increase your monthly expenses.
- Save consistently: Build an emergency fund to cover unexpected expenses and reduce financial stress.
- Plan for the future: Once you’re a journeyman, aim to increase your wage through overtime, certifications, or moving into higher-paying roles.
Final Thoughts: Can You Afford to Be an Electrician?
Becoming an electrician is a rewarding career with good earning potential, especially once you’re past the apprentice stage. However, the initial pay cut during apprenticeship can be challenging if you don’t understand your true cost of living.
By carefully evaluating your expenses, understanding the wages needed in your area, and negotiating accordingly, you can make an informed decision about whether this career path fits your financial needs. Remember, the “average” wages you hear about don’t always reflect the reality of starting out or the cost of living in your city.
Ultimately, success in the electrical trade comes not just from your skills on the job, but also from managing your finances wisely and advocating for fair pay. Take control of your financial future by knowing exactly what you need to live and thrive.
Frequently Asked Questions (FAQ)
Q: How much do apprentice electricians typically make?
A: Apprentice wages vary widely depending on location and whether you’re union or non-union. In places like Austin, starting wages should ideally be around $18-$20 per hour to cover basic living costs. Some companies still pay as low as $12-$15 per hour, which often isn’t enough to live independently.
Q: Why is the cost of living so different between cities like Austin and San Francisco?
A: Cities like San Francisco have much higher housing costs, transportation expenses, and general living costs due to demand, limited housing supply, and higher taxes. Austin and Memphis have more affordable housing markets and lower overall expenses.
Q: How can I negotiate my wage as an electrician apprentice or journeyman?
A: Calculate your personal cost of living, including all bills and savings goals. Use this number to justify your wage requirements during job offers. Understand the market rates in your area and be prepared to walk away if the offer doesn’t meet your basic needs.
Q: What are the benefits of joining a union as an electrician?
A: Unions typically offer higher starting wages, structured pay increases, health insurance, retirement plans, and other benefits. However, wage flexibility is limited, and you must follow the union’s wage scale and rules.
Q: Can I afford to be an electrician if I have a family?
A: Supporting a family requires a higher wage to cover mortgage or rent, childcare, healthcare, and other expenses. For example, in Austin, a journeyman electrician supporting a family might need to earn around $33 per hour gross to live comfortably.
Q: What should I do if my wage offer is too low to cover my expenses?
A: Consider negotiating for a higher wage, finding roommates or family support to reduce housing costs, or taking a second job temporarily. Also, explore other employers or apprenticeship programs that offer better pay and benefits.
Q: How can I better manage my finances as an electrician?
A: Track your income and expenses regularly, automate bill payments, avoid unnecessary debt, build an emergency fund, and plan for future savings. Using budgeting tools like spreadsheets or apps can help you stay organized.
Q: Is the electrical trade a good career choice financially?
A: Yes, especially once you become a journeyman or master electrician. The trade offers stable employment, opportunities for overtime, and potential for entrepreneurship. However, starting wages as an apprentice may require careful financial planning.