Overtime or Part time?

**Preston** · 07-31-2009, 05:03 PM

Here is a question I am pondering:

I am considering getting a part time job on top of my full time job. Right now I am getting a steady 40 hours a week, and about once or twice a month I pick up an overtime shift. I make about $13.50 an hour right now so overtime is around $20 an hour. Not the best paycheck but we are getting by fine with it.

Now, I have been looking into getting a part time job 15-20 hours a week at $8-10 an hour. However, this could potentially cause scheduling conflicts and could also overburden me with two employers on top of keeping on top of housework and finances.

Technically I'd make more overall by getting a part time job but I'm also thinking having off time has its benefits.

We are in debt but not in dire straits and we have a budget surplus every month already, but I want to be 100% out of debt ASAP. Our current budget has us being out of credit card debt by November, and all other debts (minus mortgage) cleared out by this time next year.

Any feedback is appreciated.

**thesightofoneself** · 07-31-2009, 05:17 PM

if i was in your shoes i would work overtime

**frugalwarrior** · 07-31-2009, 05:42 PM

Well.it would be nice to get a little extra to pay off bills or get xmas but what about other costs.
-will it raise your taxable income to eat most of the new money increase.
-will it put a strain on your marriage
-will your current boss be upset
Don't forget thats more biking or milage on that old car.
On the other hand, would shor-term save enough interest to make it worth it.

**Karen1** · 07-31-2009, 05:44 PM

if it was me, I would work overtime

if I was not in dire straits, then I would not give up my precious free time with my family and just relax time. You work a good 40 hr. week. For me, that is enough time at the job.

I never work more than I truly need too. I got out of alot of debt by working one job (Tony worked too of course) and we got it done. I thought about part time and this and that to make more money, but then I realized....debt will get paid off. It just takes time so why should I waste my life working more and more hours when I should be living and enjoying my life.

so for me, in the end, money wasn't worth it

**savvy_sniper** · 07-31-2009, 06:29 PM

When I was younger, I was in what I considered serious debt. I worked a full time job with occasional OT. I got a part time job and worked 15-20 hours a week. I was committed to getting out of debt, save for a car, and put some money in the bank.

It was hard and there were things I missed out on. But I did it for several years and felt that it was worthwhile.

**MaryCarney** · 07-31-2009, 06:37 PM

I would do the OT - you'll never have a scheduling conflict, and the hourly rate is better. Can you ASK for more OT?? Motivation and getting ANGRY at debt works wonders, good luck and keep us posted!!!!

**Greebo** · 07-31-2009, 07:46 PM

Originally Posted by frugalwarrior

Well.it would be nice to get a little extra to pay off bills or get xmas but what about other costs.
-will it raise your taxable income to eat most of the new money increase.

This idea is common and sadly misguided.

Under the US income tax system, any pay increase is always beneficial and will NEVER eat more than the increase.

Why?

Ok - we're on a "progressive" system, where the more you make, the higher your taxes. This is why people worry about making too much and bumping into a new tax bracket, because they don't understand that one's higher tax rate ONLY applies to the amount earned OVER the new limit.

So say you make 10k and are taxed at 10% but over 10k you're taxed at 20%. You think, Oh no, if I make 10,500 they'll tax me at 20 so I'll owe $2,100 when last year at 10% of 10k I only owed $1000. I earn 500 more and owe 1100 more! That's bad!

In reality, however, the first $10,000 is still taxed at 10%, and only the last $500 is taxed at 20%, so that's the base $1000 in taxes plus 20% of $500 which is $100, so your grand total is $1,100. You're still $400 ahead.

I've made up the numbers for easy math, but that's how it works, so never, EVER let a higher tax bracket scare you away from a higher income.

-will it put a strain on your marriage
-will your current boss be upset
Don't forget thats more biking or milage on that old car.
On the other hand, would shor-term save enough interest to make it worth it.

These, however, are all very valid points.

My only actual question:

How much non house debt have you got?

**Greebo** · 07-31-2009, 07:48 PM

Originally Posted by MaryCarney

and the hourly rate is better.

No - he can easily earn at least $0.50/hr more w/ the other job. His OT is only $7.50 more an hour vs. $8 min on a 2nd job.

**kita** · 08-01-2009, 12:30 AM

I can't believe I am saying this, but Greebo I think your numbers are off. Overall, he would make more money at the part-time job, but the hourly rate is MUCH better for his overtime. Part-time would be at best $10 an hour and overtime would be 13.5 times 1.5 which equals....$20.25. The tax issue is the same since Uncle Sam just looks at the total number of dolllars you make, not where they come from.

**frugalfranny** · 08-01-2009, 02:03 AM

Originally Posted by Preston

Not the best paycheck but we are getting by fine with it.

However, this could potentially cause scheduling conflicts and could also overburden me with two employers on top of keeping on top of housework and finances.

We are in debt but not in dire straits and we have a budget surplus every month already, but I want to be 100% out of debt ASAP. Our current budget has us being out of credit card debt by November, and all other debts (minus mortgage) cleared out by this time next year.

Any feedback is appreciated.

Think you answered your own pondering question.

Will you have to give up the overtime with a part time job? Is the hassle of two employers worth it? At what cost? Your health will possibly suffer too due to the stress. Are you just being impatient with getting out of debt........now that you are on this 'good roll?

Think it over......and good luck in whatever you decide.

**Greebo** · 08-01-2009, 06:11 AM

Originally Posted by kita

I can't believe I am saying this, but Greebo I think your numbers are off. Overall, he would make more money at the part-time job, but the hourly rate is MUCH better for his overtime. Part-time would be at best $10 an hour and overtime would be 13.5 times 1.5 which equals....$20.25. The tax issue is the same since Uncle Sam just looks at the total number of dolllars you make, not where they come from.

Crikey - you're right!

WOW, where was my head! Somehow I got thinking of his OT pay as if it were like tax dollars!

Dang - and I was on such a roll too... lol

**Karen1** · 08-01-2009, 08:14 AM

and if you work overtime and try to get more overtime, then you also "look" good and are a more valuable employee at your current job. Nothing wrong with being a good employee nowadays, LOL, jobs are hard to come by and increasing your value to them would never hurt ya.

There isn't a part time job in my area that would ever pay $10 per hr. Well not for the type of PT work available around here.