How a Part-Time Job Can Help

With the New Year around the corner, people aren’t just starting to think about weight loss: they are beginning to think about Debt Loss. Do any of the following questions sound familiar: How the heck did I rack up the balance on these cards again? How can I possibly cut my expenses when I feel as if I am living on a shoestring now? Or my old standby - I really don’t want to give anything up because I like the way I live but I do want to get rid of my debt.

Yep! Accumulation of debt is easy but it can be difficult to get rid of. Don’t let those balances overwhelm you. Create a plan. You can be out of debt before you know it and I don’t mean Debt Consolidation. Ugh! That never works. You just rack up more debt in the long run. Do it once and do it right.

Getting a part-time job fits perfectly into a Debt Reduction and Retirement Plan. Increasing your income just-a-little-bit can make a huge impact, as long as you have a plan and stick to that plan. It may not be the advice you wanted to hear but it is true. Taking responsibility and making time for a part-time job has changed lives for the better.

Here are four tips to help you succeed in starting your plan:

1. Get the Right Job: While searching for a part-time job, make sure it doesn’t interfere with your main source of income or other full-time employment. Not only should you watch for scheduling conflicts but make sure you will be able to get enough rest so you can perform your duties as normal. Keep your new job close to home so that you aren’t spending more on travel expenses than you are making. Organize your schedule with your spouse so that your childcare expenses don’t increase either. Basically, keep the expenses of having this job low, while increasing the amount of money coming into your household. Make certain it fits your schedule and lifestyle.

2. Create a Debt Snowball: It absolutely will do you no good to make extra money if you don’t have a plan. Money without a plan becomes money you just blow. Instead, have a plan and create a debt snowball to pay off those credit cards and other debts as quickly as possible. We have the instructions right here. Our debt snowball makes sense because you pay off your highest interest debt first, saving you the most money. If you think you need more incentive, then create your snowball to pay off the smaller amounts first instead. You may spend more in interest, but you’ll have the reward of paying off a card sooner, which creates excitement and momentum. You decide which plan works best for you.

3. Focus on Spending Triggers: Do you know what stores trigger your spending? Maybe it’s not a store but the word “SALE.” Everyone has some sort of spending trigger. Make certain your new job doesn’t trigger yours. How? If you are a clothing shopaholic, you certainly don’t want a job in your favorite clothing store where you’ll get a discount. That means you may begin to justify spending your entire check there because you “saved” so much. You want to make money, not spend it. Also, it’s a good idea to focus on recognizing your spending triggers so you can avoid spending any of this income at all on anything other than debt reduction or retirement. Be true to your family by being true to your plan.

4. Commit Your Paycheck to Your Plan: It’s easy to fall into the trap of considering your paycheck from your part-time job as extra cash but don’t do it. Your part-time job is not extra money: it is money with a very significant purpose. That purpose is to eliminate your debt and save for your retirement. Debt is money you borrowed so it’s money owed to someone else. Once you are out of debt, you can keep your part-time job and start saving towards your retirement or go back to your regular income, whichever appeals to you most.

Remember, when taking a part-time job, set a budget first. Avoid the temptation of spending your extra cash on pleasure and stick to your debt repayment schedule. Get the entire family in on it. Even let your kids know what you are doing and why you want to do it. If you want to reward the family for sacrificing and sticking to the budget once your debt is paid off, plan that, too. Set aside a specific amount for a specific reward. For instance, if you spend months getting yourself out of debt paying off thousands of dollars and your kids gave up their cell service to pay it off faster, you can save up for a family trip to Universal Studios as a reward. Plan ahead and save up for the trip in a secret account. This is a great way to teach your kids delayed gratification and thank them for their support at the same time.

There is nothing like the feeling of being debt-free. You owe nothing to no one. It’s liberating. We here at the Prosperity Process are cheering for you all the way. You got this!

Michelle R Russell

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