One of the most common issues that occur when working with clients is how to create extra money to apply to debt or savings each month. The answer is always the same, cut back your expenses or get a second job to earn extra income. However, most people are reluctant to take a temporary job. Why is that?
When mentioning a second job, we are not talking about a permanent one, but rather for a short time to get your finances under control. Still, weird looks are shot back at me when I mention this option. The reasoning behind getting a second job is simple. With cutting back, you can cut back only so much. You still need money to meet your necessities. But by working more hours, which means more money each month, which can be applied in big chunks to pay off debt or build emergency savings. An extra $1,000 a month goes a longer way then cutting back the cable for $50 a month.
Do not get me wrong, cutting back and learning to say, “No,” is also an important step in getting your finances under control. But why not take that extra job delivering pizza a few nights a week to earn $1,000 more a month to help pay off that $10,000 car loan? Or why not start going to garage sales on the weekend, buying stuff to resell on eBay and get $400-$600 a month to build your emergency fund? Not everybody has to go out and get a second job, but you need to ask yourself if it is worth the 6 months of temporary sacrifice to get control of your finances two years earlier?