Receiving some extra income through a second job can be a good way to catch up on daily expenses and monthly bills, or it can help you save up faster if you have a long-term financial goal. If you’ve contemplated the idea of working a second job, consider some of the following:
Make sure a second job is worth it
If you do begin working a second job, take a good look at the take-home earnings and weigh it against the additional work hours you’re putting in and the extra stress that you may be experiencing. Depending on the total amount of money you’re bringing home between the two separate jobs, you may wind up working more, only to be put into a higher tax bracket and have more of your money taxed.
You’ll want to also consider the other costs that can come with taking on a second job. For example, if you’re a single parent, you may have to factor in childcare expenses. And whether you use public transportation or have a car, you’re likely talking extra transportation costs to factor in. Depending on how much you’ll be making from your second job, it may actually not be worth it. You may be better off trying to make some extra cash through small side projects, such as having a garage sale or selling things online.
Don’t work for the competition
Whether you choose to stick to the industry you’re already familiar with, or you want to expand your horizons, avoid applying at companies that are in direct competition with your current employer. If you do decide to work for the competition, you could end up getting fired from your main job and losing your primary source of income.
Pick something different
You may be tempted to stick to your comfort zone by taking on a second job that is in a similar industry, but consider doing something entirely different. You could still put some of your best skills and talents to use, while exploring a new line of work. Otherwise, if your second job is too much like your primary job, you may get bored quickly and feel overworked.
Don’t overwork yourself
If you’re already working a full-time job and you want to take on a second job to make some extra money, carefully consider how many additional hours you can add to your schedule. If you work too hard, you may end up extremely stressed and deprived of sleep. This can make you more susceptible to illness and you may find that you’re not performing to your fullest ability. If your performance level drops at your full-time job, you may end up getting fired. Only take on what you can, and make sure it doesn’t cause your performance level to suffer.
Make a new budget
If you’re working another job because you have a big goal you’re hoping to save for faster (for instance, a down payment for a house) then you may be using all or most of the money you’re earning from your second job to put towards that goal. But if you’re temporarily working a second job just to catch up on your expenses, it’s a good idea to make a new budget that factors in this extra money, so that you can save as much as possible after you take care of your bills. Adding to an emergency fund might be easier now that you’re making more money, and even if you can only afford to contribute a little at a time to your savings, that’s okay. Every contribution helps, and if you’re ever in a financial jam later on, having enough money in your savings account to cover your bills can allow you to avoid working a second job.
If you’re receiving long-term annuity or structured settlement payments, but you need cash to catch up on bills and expenses, Peachtree may be able to help. At Peachtree Financial Solutions, we can purchase a portion of those future payments and offer you that money sooner in the form of a lump sum. Contact us today for more information and for your free quote.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.