Whatever the reason, you’re considering getting a second job.
Most likely, this is to pay off debt.
I’d like to say up front that if you cannot pay your monthly bills with your first job, you may want to consider a different career or changing your lifestyle. If a second job could make the monthly bills lower after a certain period of time and you have confidence that your first job can pay the monthly dues after you eliminate some debt, then let’s continue.
I’m going to go through some of the pros and cons and things to consider while you’re making your decision.
Every situation is unique and yours is no exception. Knowing where you stand, planning, carefully calculating, and monitoring are the keys to successfully paying off debt, even if you don’t end up taking on a second job.
Know What You Owe
You need to know where you stand in order to calculate how much a second job could speed up the debt repayment process.
So first, sum up the balances on all of the debt you have.
I would suggest that most of us leave our mortgage out of this number, but there are a few exceptions to this:
- You’ve got less than 5 years left on your mortgage.
- A mortgage is the only debt you have and that’s the one you want to aim at.
- You’re creeping up on retirement and your mortgage will not be paid off in your retirement years.
If you have other debt that is your main concern, but you are still including your mortgage, I would keep it separate.
The idea is not to feel overwhelmed with your overall number. Breaking up large goals into multiple smaller ones gives us the ability to feel a sense of accomplishment throughout the journey. It will also make it easier to hold yourself accountable later.
Keep this in mind with any other large debt like student loans.
Please take the time to do this step. You’ll be unable to make an educated decision until you face what your total debt is. Include all credit cards, car loans, student loans, or any other payments you make to others each month.
As previously said, your situation is unique and if you have five different types of debt but you only want to include credit cards, only include credit cards. If you have no debt, but want to build your savings up to $50,000, then $50,000 is your final number.
Once you have your final number you want to tackle, we can move on.
What Are You Able To Pay Off With One Job
Look at your current income. What is the amount of money you can apply each week to your debt?
If your debt is $10,000 and you can apply $100 per week, it will take you almost two years to pay off this debt.
Please note that we’re looking at 0% interest debt. Most likely you’ll be adding a few months to whatever your number ends up being due to interest.
Figure up the time it would take you to pay off your “final debt number” based upon what you can apply each week. Then take a moment and decide if you’re happy with that number. If you’re here researching a second job, you probably know the number is not going to be something you are happy with.
What if you could cut the time it will take you to pay off the debt in half? Is that more to your liking?
Let’s take a step back and look at this from another angle. What’s your final debt number and how many months (or years) do you want to have it paid off in?
For example, say your final debt number was $10,000. You would like to have that debt paid off in one year. That equals roughly $190 per week.
Key things to consider:
- What you can currently contribute to debt payoff.
- How long it would take you to pay off the debt using your available cash each month.
- How long you would like to take to pay off this debt and how much extra income that would take.
It is possible that you are unable to contribute anything outside of minimum payments to your current debt. If that’s your answer, then that’s your answer. The point of the exercise is to know what you can contribute.
Second Job Potential Positives
1. Spending Slows
While you are working these two jobs, you will have less time to spend. Perhaps you are spending too much money on going out to eat regularly at nice restaurants or shopping.
If you have something you’re doing in your free time that is contributing to the money problem, you will not be able to engage in those activities while you are working.
2. It’s Totally Temporary
You’ve now made your game plan.
Based upon our previous conversation, you need to know how long you’re committed to working the second job. It helps if you know your end date.
You could absolutely quit at any moment if this becomes too much for you to handle.
3. It Could Open Doors
If there’s something you are interested in doing and you’ve never had the courage to leave your current place of employment, this may be the opportunity to try something new that you love on the side.
We are no longer in the world of 40 hour a week office jobs and standard weekend positions. Explore your options. See if you could find this extra income by creating something you love, offering a service that is meaningful to you, or starting up a side gig.
4. Debt Reduction
I imagine you have some sort of stress or anxiety by having the debt that you want to eliminate quickly.
Is having a second job for a short period of time worth it so that you eliminate this debt and release some stress?
Second Job Potential Negatives
1. You Depend On The Second Job
Combining the second job income with the first job income is a big no-no.
So have the second job’s income placed into it’s own account. This account only receives in money from the second job and sends out payments to debts.
If you start combining your incomes, the temptation to spend it on something other than debt will be present.
Have you ever received a pay increase at work, but you barely felt it change the extra amount of money you have at the end of the month? If you had taken that increase and placed the exact amount in a different account, you would have seen it more clearly.
You do not want to start depending on the extra income to support your lifestyle. Instead, you want to use it to pay off debt.
The last thing you want is to start a second job, not separate the money, and then suddenly depend on the second job’s income.
2. Slacking Off On Job #1
Do not take on a second job that is going to put your first job at risk. Make sure you have enough time to get sleep.
If you’re unsure of how much sleep you or your family needs, check out this CDC page on “How Much Sleep Do I Need?“.
Keep job #1 as your priority and do not do anything that may jeopardize it.
3. Organization
With less “you time” available, make sure you stay on top of paying your bills on time every month.
If there are any bills that you feel comfortable placing on automatic payments, do so prior to starting the second job.
If you start racking up late fees by missing payments because you are so busy working, it chips away at your take home pay and extends the time you’ll need the second job.
4. Free Time And Children
The time you’ll have for yourself and your family will be less. Are you prepared to give some of that up?
If needed, consider the child care costs. If you have to pay someone $50 to make $100 and you’re missing out on spending time with the children, it’s probably not worth it.
Must Do’s Before Adding A Second Job
The number one must do is stop borrowing. If you are still borrowing while you are working the second job, you have a larger issue to tackle.
Look at why you are currently in this situation. Are you spending more in a month than you are bringing in? (If needed, check out my article on shopping addictions as well.)
Any bad habits should be the first thing you change.
Get into the mindset that 100% of the money you gain from this second job will go to pay down debt. If you start absorbing this money into your day-to-day spending, you will start to become dependent on the income the second job is bringing in.
Ideally, you would cut all costs to the minimum while you are working this additional job to limit the time required to pay off your debt.
Key Takeaways
I would suggest finding the root of your problem. How did you secure this debt and have you taken the proper steps to eliminate it coming back after you’ve worked a second job and paid it off?
If you do decide to take on a second job, prepare mentally and physically for it. Make sure your expenses are being paid on time.
The money has to go into it’s own account and all towards your debt. So remember to stay focused and make small goals.
If you do not choose to take on a second job, look at other tactics. Are there side hustles you could manage in some free time? Try a one month no spending challenge.
My Opinion On Second Jobs
Do it.
It’s temporary, right? You could quit at any time if it starts impacting job #1 or your day-to-day lifestyle.
Finally, I know that debt sucks. If you can sacrifice for a little bit to get ahead, go for it.
It’s certainly easier if you can find a side gig or hobby that you could potentially grow into something that you love and make you some cash.
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