Are you working at your first ever full-time job? Are you surprised by how little money you’re saving? Do you want to start seeing your savings account grow at a faster rate?
The problem likely is that you need a second income to help you reach your savings goals for now. The reality for college graduates often is that an entry-level salary just doesn’t pay enough money if you want to pay down student debt, invest in your future, and have some fun. This is why you need to make some changes to your income.
As we continue on with the Saving Tons of Money Series, we now are shifting over to the idea of hustling for a certain period of time to reach financial goals.
Let’s get into the real meat here– How can I save more money with a double income?
1. Figure out what your expenses are on a monthly basis.
How much money are you pumping out every month? You need to calculate all of your fixed and variable expenses. Everything from rent to cell phone bill to gym membership needs to be figured out. Then you add in your variable expenses like food and going out.
Hopefully you can end up with a final number. This is the number that you’re pumping out every month. First you need to figure out if your current income even covers this amount. If it doesn’t then you’re in trouble. If it does, then you’re on a good start.
The reason for this is that you need to know the bare minimum amount of money that you need to make every month.
2. Check your schedule for when you’re free.
Do you work mornings or evenings? Is your work day very hectic or more laid back? I hate giving one-size-fits-all personal finance tips because we all have different lives. This is why we all deserve unique tips.
We all have a different schedule. If you find yourself free every evening then you can easily find an evening job in a retail store or something along those lines. If you’re free in the mornings, you can do anything from personal training to babysitting. If your work is easy then you can do some basic online work during your lunch break. It all depends on your schedule.
3. Determine how much money you want to save and why?
How much money do you want to save? Why do you want to save this money? A friend of mine is working 70 hours a week so that he can become debt free of his student loans by this January. Another friend of mine is saving up $25, 000 for a first home purchase.
When you have a goal in mind you’ll be much more motivated to hustle during the stressful times. It also helps to keep your eye on the prize when you have a prize in mind.
4. Find a second income that matches your schedule.
This is where things get fun. We touched on this a few paragraphs earlier. You want to find a second gig that matches your lifestyle and your schedule. You don’t want to kill yourself by working a night shift when you know that you need to rush to your morning job two towns over.
It helps to be realistic when hunting for your second job. What will you find?
5. Start savings lots of money.
Now that you’re making more money, you need to get into the habit of putting away this money. Where you put it away will be discussed next week. Stay tuned!
Now that you’ve reached the conclusion of this post, we hope that you have the tools ready to help you start making more money with a second income. Are you ready to work you ass off?
Check out the other article in the series:
The Power of Passive Savings.
You Need to Pay Yourself First.
Take Credit For Your Credit.
(photo credit: paraflyer)