by Hope
My side hustle has begun to pick up again. I guess the first of the school year honeymoon period is over and teachers are ready for occasional breaks, have sick kids or have conferences to attend. This year I limited myself to just subbing for the high school. I did this for two reasons:
- I much prefer this age group. The middle school is okay, but I know I don’t have the temperament for elementary school.
- The block schedule (longer classes) is much more conducive to me being able to get some of my own work done versus changing classes every 45 minutes to an hour.
I’m continuing with the same plan for this money as I did last spring…just letting it build up in a savings account. I am paid once a month and have it direct deposited into its own account. So I truly never see it unless I go looking for it.
In fact, when I was paid this past week, I was surprised. (My first paycheck from teaching since last May.) It’s not a lot, well, depending on how often I get called. But an extra $69 a day is a decent wage for just sitting and monitoring kids doing work. It really is a great side gig. And I enjoy “teaching” the kids. I miss that aspect of homeschooling and the classes I taught at our co op.
At this point, I do not and have no plans to include this income in my budget. First it is too variable. And second, I have no plans to use it for the time being, just letting it grow.
I also set up a account on Rover.com to pet site or walk dogs a few weeks ago, but no hits on that. I’m not surprised seeing as we live in a tiny little town. But I will keep it active just in case. Do you have a seasonal side gig that you enjoy?
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 5 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
I thought this blog was about paying down debt. You should put it all to debt payment! The money will serve you much better as debt payment than building up in some account for no particular reason. You seem to be in a holding pattern as you said you are just letting extra money build up in your general account as well. Is there a reason you feel you should save up your money? Let’s see some purposeful action against that debt instead of planning to carry it into retirement or die with it!
You are right. Last month I was in a holding pattern as I don’t have a clear plan on attacking my last two debts: student loans and car. I’m planning to put some thought into that this month and then move forward.
Perhaps you can split the available money between debt payment and starting an IRA. That way you are working on both of your goals (debt payment and retirement savings).
The school district probably would not be happy to hear that a substitute teacher is double-dipping by doing work for their own business while being paid to sub. You should not advertise you are doing this.
I don’t know how they could mind. I literally have to sit 2 hours between classes at time when I have planning. And other times, I am watching the same movie 3 times in a day. Most subs bring books to read. I just bring my laptop.
If there is work to be done, I do it. But if I’m literally just an adult body in the room to keep order…well, I don’t see much difference in reading a book and being on my computer.
Every job I’ve ever had, though granted I’ve not substitute taught, has a clause in the employee handbook about not taking other paid work during your work hours. Maybe your work has such a clause, maybe they don’t. Either way, it’s not considered professional. Even if they don’t, exercise discretion.
Personally every month I would be paying on the principal of that car payment. You’re paying more in interest than making on a saving account. Don’t you want to be out of debt, do you like paying so much for a car that looses value every day?
I think using all the “side hustle” money to pay principal payments for your car is a great idea. It sounds like your regular income budget is in good shape paying your bills and adding to your 6 month EF so I would make a monthly principal only payment to your car each month with monies from that separate account.
If you really like the idea of not looking at this side money separate and watching it grow. How about looking into direct depositing it into an IRA? Small, easy start to your retirement savings. Plus you can save on taxes at year end.
At this point your debt is pretty murky. A car loan that is or isn’t your’s and at a low rate. And a student loan that is a low rate. After your e-fund is stocked up and you’re consistently paying down the car loan I think you’re ready to start saving for yourself!
Just confirmed. Vanguard does have this service where they provide a routing number and account number so you can have your paycheck direct deposited. Set it up to auto invest, or even just keep it in a stable money market fund. You’ll still get all the tax advantages
If you contribute to an IRA, you can remove the contributions at any time penalty free. So it’s also a good “crap hits the fan” secondary emergency fund.
I was going to suggest the same thing. This sounds like a great opportunity to start retirement savings. You don’t count on it as part of your budget anyway and it would be a better use for the money then just having it sit in a regular savings account.
Oh, Hope!
I have to chuckle.
No matter what you do, someone is going to say, “You’re doing it ALL WRONG!!”
Best wishes, there.
Thought: why don’t you split these extra earnings into 75% debt and 25% savings? I get that you want to have savings, but first get those debt down to zero!