Money Crunch Solutions: Get a Second (or New) Job

A second job can improve your income, but it might not make your life any easier.

In the emergency room, doctors use the defibrillator to combat a stalled heartbeat. But combating a stalled household income is often a more complicated problem to address. When times are tough, you can get a second job to jumpstart your cash flow and help manage your personal finances. But the question is, is it worth it?

Reality check on wages

Your paycheck just doesn't seem to go as far as it used to. And it isn't your imagination; data published by the Bureau of Labor Statistics (BLS) confirms that real wages have largely declined since March. The real wage metric adjusts wage income for inflation. This provides a statistic to measure the change in the buying power of American workers. Reported figures from the BLS indicate that real wages fell 0.17 percent between March and July, before ticking up slightly in August. The gist is of the trend is that you're probably earning less in real wages, even if your income hasn't changed.

Jobs harder to find

For many households, the financial pressures of rising inflation are exacerbated by an actual income loss. According to the BLS, unemployment has been increasing since February, moving from 4.8 percent to 6.1 percent in August. If a wage earner in your household has been laid off or forced into a lower-paying position, hitting the job market may be your only option.

Added income, added expenses

Before you start shooting off résumés, take time to analyze the true net income a new or second job will provide. If you have young children, you'll need to arrange for childcare. The associated costs may very well wipe out all the money you could potentially earn. A second job may also lead to increased gas, food, and auto maintenance costs. And finally, there's the emotional and physical wear-and-tear to consider; it's draining to hold down two jobs, particularly if you have family at home.

This analysis may cast some doubt about whether the second job really is the right alternative. If so, go back to your budget and look for ways to reign in your spending. Think about taking a temporary loan from a relative or from your own savings account.  

If you must get that new job, follow these tips to hold expenses in check:

• Look for an at-home position. Real work-at-home jobs aren't easy to find, so be on guard for scams.

• Ask grandma or grandpa (or an aunt or uncle) to contribute to your childcare needs.

• As soon as you land your new job, start inquiring about carpool arrangements. Alternatively, consider riding your bike, walking, or taking public transportation.

• Plan to pack your lunch daily. Get familiar with the coupon section of your local newspaper.

A second job can jumpstart your cash flow and help with your personal finances; but it can also shock your lifestyle. Take care to proceed cautiously.