One way to pay off your debt load faster is to put more money towards your debt. An easy way to do that is to earn more money at your current job, or in extreme or hard core cases, by adding a part-time job to your life. While I am making slow, but good headway on my debt, I have often thought of maybe getting a part-time job to help out with things. I haven’t had a part-time job in well over 20 years, so it would definitely be a strange thing to do, but it’s something I considered.

Instead, I decided to go get myself a brand new FULL time job that would pay me more. How much more? Well, how’s $8000 a year more? Yes, you read that right, I managed to find myself a job that pays me more than what I’m making now. It’s actually a step up for me as it’s a senior position that would allow me mentor younger team members, while contributing more to the team’s output. I’m quite excited about it. What’s even better is that my new employer even put down my monthly gross income on the offer letter, which was nice, as it allowed me to calculate how much more I’d be getting each month. Here’s the breakdown:

Old job: $2500 net income per month = $1880 gross income per month.

New job: $3400 net income per month = $2550 gross income per month (approx)

How exciting is that? I’ve increased my income by approximately $670 per month. This will allow me to put almost all of that towards my debt, which will cut down on my repayment schedule by several months. Of course the new job is in another city which means I’ll be commuting a longer distance than  I am now, however I crunched some numbers and find that it will only cost me one extra tank of gas per month, so that’s good. I won’t be putting all of the extra income towards that, but will be able to put the majority towards my debt.

Eventually I’ll also be moving to this other city, which will allow me to save even more money each month because my housing costs will go down dramatically. I figure I will be able to save another $200-300 a month in housing costs, which I will again be able to put towards my debt.

This new job will potentially allow me to put almost $1000 more per month towards it, which will reduce the amount of time I’m paying things off significantly! I am very pleased about this on many levels.

What strides have you been making to pay off your debt? Anything new and exciting to report?

Related Content

Subscribe to the post comments feeds or Leave a trackback