If we are to believe what I/we have been reading, 2022 is going to be a more expensive year, around £1,200 more expensive per household than last year.
In part to pay for the pandemic, in one way or another. Prices of just about everything is going to rise:
The list can go on and on.
So to maintain the same lifestyle we have, we need to somehow find an additional £1,200 a year to make-up this increase.
For many, it is not going to be easy. You can only cut so many things out of your budget or expenses each month.
You can look at cheaper holidays or do a staycation, you can try to reduce your food budget, and also try to reduce your car expenses, if you drive. But the reality is, there is only so much one can do to reduce their expenses and cost of living.
So in looking to “bridge” that gap between what your expenses are now, and what they could possibly be, if you cannot cut any expenses or make reductions, the next stage is to increase income.
The Job/Labour Market 2022
When we discuss increasing household income, there are a few ways, and one is to make more money at your current job. You could work more hours, or ask for a wage increase.
Wage increases are unlikely as companies/employers/industries are also facing increasing costs.
Working additional hours, or overtime is a possibility, depending on the job you have. With many people having to self-isolate due to Covid, there is the opportunity to pick up overtime or more hours.
My research has shown there are many, many jobs being offered in various sectors, hospitality, retail, restaurants, etc. These jobs are usually part-time, can offer flexible working hours, and many are evenings or weekends, outside of what hours we may currently work.
So what am I saying…..getting a part-time job has not only ever been easier, there are many being offered.
There are downsides to working more hours or taking a part-time job….and that is…. it is work!
If the job is something you like, fantastic! If it is not, then not so good.
It is a balance, a balance between time with family and friends, and having a life, and being at work, working every hour God sends (as they say).
The next issue, especially with taking a second part-time job is the taxes. Your second job can be taxed at a higher rate, which means you will earn less then what you may expect to earn.
The fact is you will be bringing in more income/money, so that is helpful in bridging the gap between your old expenses and new expenses. But you will also be paying a higher tax rate.
It is simple math:
Expenses go up = either reduce expenses/or earn more money = living or maintaining the same lifestyle.