Improving financially by taking the second job
If you are planning to pay off your debt early or trying to retire early, the easiest way to achieve the target is to take up a second job.
The second job should contribute at least 50% of your primary job to make sure that your hard work gets enough wealth.
How I have paid off my debt quickly?
I have taken up a second job which pays about the same as my primary salary. My debt EMI is about 40% of my salary and it was pending for about 4 years. I got the opportunity to take up the second job when I was just married. I was in double mind to take up the opportunity, to pay off my debt, I thought it would be nice to take up the second job to pay off quickly.
I have taken up my second job for about 9 months and of course, I was feeling exhausted during the end of the week and I was early gaining a lot of weight since I cannot do anything during the weekdays and I even needed to work at least one day during the weekend to cover the extra load of work during the weekdays. I was always waiting for the weekend to come. It was not a pleasant experience at all taking up two full-time jobs.
After 9 months, I somehow managed to quit my second job. I cannot take it anymore. I have paid off 70% of my loan amount after 9 months of hard work. When I am thinking about it now, I don’t even remember the effort made or hardship during that time.
What did I do after quitting my second job?
Of course, I thought of using the time productively. But it never happened. I started seeing movies and web series to cool off for a month. But I continued the same for the next 4 months. I even got an offer from my second job to pay 30% more than the initial salary but I have rejected the offer. I miss working on a second job to stay busy. I am not a person who is productive when I am not having pressure.
Why you should take a second job for financial independence.
For you to plan on retiring you need at least 25Xof your annual spending. If you are spending 50% now and saving the rest of the 50%. You can take a second job that pays almost the current salary and work for 3 years. You will have 9 years’ worth of spendings. If you work for 6 years, you will have 18 years of your spending. If you work for 8.5 years, you can retire from both jobs. If you want to lead a calm and simple life, then take up a few risks by working 3-5 years in two full-time jobs to reach the goal soon. If you invest the salary wisely, you can even quit both jobs in 6-7 years of two full-time jobs.
You can grow your wealth at 8% per year by splitting your portfolio in the Debt and Stock market. If inflation is at 6%.
You can have wealth for 33 years of your lifetime. Which is mostly enough if you are working something part-time whenever you are bored with your life.
I prefer working hard now than working forever. I am planning to take up two full-time jobs again for a year to reach my goal of 25X. Even though I have real estate property providing my parents with 2X of my spending. I want to make myself and my family enough to retire early and do something on my own like blogging/YouTube/Udemy. I already have 6X of my spending invested. If I work 2 full-time jobs for 2 years, I can make it to 12X of my yearly spending. I will quit one of my jobs in one year and cool off for one more year.
Even though doing two full-time jobs can be hard, you can see the financial reward far more sooner.
Things you have to do?
The second job need not be a full-time job, it can also be from passive income or freelance income. You can sell in e-commerce like amazon, Flipkart and others. Do freelancing in Fiverr, Upwork, and another website that can improve your skills as well as provide a decent amount of income. Your passive income should at least contribute 30-50% of your primary job to create wealth sooner.