The Part Time Job Method of Increasing Your Income
I'm In Debt
- Posted:
3/27/2009
Getting out of debt requires that you learn to reduce your expenses in order to have more money available to put toward your debts, or that you find a way to increase your income and use the extra money to pay down debt. If you are someone who has considerable amounts of debts, it's likely you'll need to both reduce expenses AND increase income.
It's no secret by now that I'm a believer in doing freelance work from home as a means of increasing your income – whether you write articles for clients or start a blog, design websites, or provide other services, I feel there is a lot of money to be made through freelance jobs. I started out getting paid to write, working part time around my full time job; and shortly after decided to make writing my full time career. I just realized that I could earn far more working from home by eliminating unnecessary expenses of commuting to and from work.
For people who don't feel they can manage their own business, or who don't feel they have any marketable skills that could help them earn income on a freelance basis - maybe getting a part time job is a better method for you to increase your income.
Before you start applying for jobs, sit down and work out your budget (again). Figure out how much you are currently earning per month, and how much you currently pay out in debt repayments and living expenses. If there are areas you can still cut back and reduce your expenses, then do so. (Common areas for cutting back include
canceling cable tv, learning to
waste less to spend less,
spending less on groceries, or
reducing your utility bills)
Once you know where you're at financially, determine how you will pay off your bills, if you are able to increase your income. For example, will you pay off your highest interest account first or your lowest balance? Regardless of the method you choose, make yourself a plan so you know exactly what to do with additional income you earn from a part time job. If you don't plan it out, chances are you will just absorb the income from your part time job into your regular spending habits and it won't help you get out of debt any faster.
Once you've got a plan in place, start looking for part time work. You want to find employment that doesn't end up costing you more money than you make. For example, if you have to drive an hour to get to your part time job after your full time job ends, the additional gas money and wear and tear on your vehicle, plus the extra time spend in the car, actually reduces the amount you earn. So look for work that is either near your current job, or on the way home from it rather than off in some other direction if possible.
Apply to several places – despite a weakened economy there are many part time jobs available. You will probably have to accept a job doing something you may not feel is the best use of your abilities or skills, but keep in mind you're doing it temporarily for extra income to get out of debt. Once out of debt, most people make more than enough money to sustain a debt free lifestyle with good money management skills. Retail and fast food services experience high turnover, so chances are you can easily get a job at these types of businesses for minimum wage or slightly above. Some fast food employees earn tips – which can help offset the lower hourly wage.
When you get a part time job, plan to use that income on your debt repayment plan. Be careful not to over-commit yourself. Start with just a few days a week for your part time job, and gradually increase your hours if you're able to.
Comments
