Best Monetary Tips for Part-Time Employees

Financial Advice for Part-Time Workers

No matter how hard you work you spend a lot of time and effort on it on a daily basis. If you work part-time you certainly earn a part-time salary but you have more free time. Finding a work-life balance is what every employee is striving to do these days. However, if you start working part-time you will still receive the same bills as other people. In this article, we are going to talk about financial advice for part-time workers and things you should consider before you make this decision.

Best Money-Saving Advice for Part-Time Employees

Would you like to finally achieve that work-life balance? Thousands of people dream of having more free time and flexibility but you need to be smart to make a savvy decision. Many consumers find it challenging to work part-time in terms of personal finance as they make less cash but get the same utility bills as everyone else. As a result, part-time work may cause more financial pressure and stress trying to cope with all the necessary expenses and make ends meet.

Here is what you can do to save more money even when you are working part-time:

Prioritize Your Monthly Costs

One of the most important tips is to set financial priorities. When it comes to monthly expenses, having steady employment is necessary. When your monthly income fluctuates due to temporary or part-time work, you still need to know how many hours you work every week and how much cash you earn. Remember that you will still have to pay for rent, cover utility bills, and buy groceries. These are the essentials you will have to cover inevitably, and if you urgently need an additional $500 with no credit check, getting a 500 dollar loan can be useful. Otherwise, you need to establish an emergency fund for unpredicted expenses.

Make a Budget

Another useful tip is to create a monthly budget. You need to know exactly how much you earn each month and how much you spend to determine whether some cash is left for your savings. Write down your monthly bills and salary, and calculate your obligatory spending. Is there anything left to set aside or pay down existing debt? You need to get a clear picture of how you manage your personal finances and your monthly income to understand if you can cut down some expenses.

Set Targets

You also need to save money no matter what type of employment you are having at the moment. Every consumer needs an emergency fund and solid savings account to cover urgent and planned expenses. Set your own financial goals and think of what you really need to achieve in the short- and long term. What are your priorities? You may want to save for a new auto, fund an upcoming vacation, or just set aside enough for your retirement fund. Calculate the total sum you want to save, divide it by the number of months, and you will get your savings to target per month. It is optional to divide this goal by the number of weeks as well.

Think About Your Schedule

Do you have enough free hours each week? When you are working part-time you certainly have more spare hours compared to full-time workers. Why don’t you take another part-time position? You may also start a small business, try to sell some items, or make something. Working from home or online can be beneficial and bring you extra dollars for your needs. The hospitality industry offers a higher tips rate on some shifts; some industrial jobs also have higher rates for working overnight.

Can You Afford to Work Part-Time?

According to the Report on the Economic Well-Being of U.S. Households by the Federal Reserve, 15 percent of adults work part-time and 5 percent say they have a temporary position. People who had a temporary job or worked part-time felt more finance-related stress than those who worked full time. Thirty-one percent of respondents claimed they found it difficult to get by. Another interesting fact is that part-time work was more widespread among women than among men.

But you can’t ignore monetary consequences when you consider shifting to part-time employment. Here are some questions you should ask yourself before you decide if you can afford to work part-time:

Will You Be Able to Pay Your Bills If You Work Part-Time?

This is an obvious question as you need to ensure your part-time position brings you enough funds to cover your monthly bills and expenses. It may not be a reasonable solution in case you can’t stretch your income far enough.

Will You Still Save Money?

You need to understand if you will be able to cut down some expenses so that you still have enough left to set aside if you start working less. Older employees who already get Social Security benefits will have enough funds even if they keep on working part-time while younger workers may experience issues with their savings.

Will You Qualify For Benefits?

Working part-time may affect your benefits such as health insurance, vacation and sick time, as well as retirement. Ask your employer if the company offers health insurance for part-time workers. Also, you need to consider if you will be able to have a 401(k) plan and have an opportunity to save for your retirement. Finally, while full-time employees usually benefit from paid vacation and sick leaves, you need to ask what your options will be and whether you will have to adjust your monthly budget for this purpose.

Follow these tips if you want to start working part-time and have more flexibility. Saving money and budgeting can take some time but if you are dedicated you will be able to reach your financial goals even if you don’t work full-time.