Most of us wouldn’t mind a little extra money in our bank account at the end of the month. The simplest solution to accomplishing that would appear to be making more money. Raises can be hard to come by, and so, many turn to finding some side work.
In fact, secondary jobs and side hustles are more common than ever. 37% of Americans work a job on the side for an average of $686 per month.
But is that the best solution to the issue of not having enough money? Let’s take a look at the pros and cons of acquiring a second job.
Having extra income enables you to do more with your finances. If your primary income covers all of your monthly expenses, then that means any money you earn on your side job is extra revenue that you can place anywhere.
You could utilize this money for savings, funding a retirement account, paying down debt, or a combination of all of the above.
As for whether or not you should pay off debt or save that extra money, make sure to check out our previous post here.
It can also be a great way to save up for a vacation, a car, a home, or some other special purchase.
There are other reasons why people turn to second jobs as well. People who normally work from home or at an isolated office desk see it as an opportunity to interact directly with people while getting paid.
The Potential Problems
People need rest. Our bodies work in rhythms, and if you’re trying to push yourself non-stop, you’re going to get burnt out. You may start to miss important gatherings and hangouts. The quality of work at your main job may start to suffer.
And you can quickly find yourself tired and irritable all the time.
When all you seem to do is work to make more money, life can start to feel like a pointless circle. It’s important to remember why you’re trying to be financially responsible. You should have goals set that you’re working towards. There needs to be a reason behind your actions.
Some secondary jobs simply aren’t worth the sacrifices.
When trying to decide whether or not a second job is the worth the time and effort, make sure to factor commuting time and expenses in. You should consider convenience when it comes to a second job.
Proper Budgeting Should Always Be Your First Priority
It’s very easy to subconsciously adjust your standard of living when more money comes into play. Whether it’s income from a second job or a raise, you can quickly find yourself spending more than you previously were. This is why budgeting is the first priority when it comes to sorting out your finances.
It allows you to fully understand how much money you have, and it may even reveal some extra money you could free up. Once you’ve done your budgeting, you should establish goals you’re working towards, whether it’s paying down debts or getting started on retirement.
A second job can help with these areas, but you need proper systems in place if you truly want to be effective with your money.
The best way to maximize your financial health is by meeting with a financial professional. They are your coach and fiscal personal trainer, pushing you and keeping you accountable on your journey towards a better standard of living. For experienced, affordable financial planning in the Springfield, Ohio area, contact KB&P Partners today.