In otherwise stale news Australia has had 12 consecutive rate rises over the past year or so resulting in adding over $1000 for the monthly payment of the average Australian mortgage. Also the recession has resulted in prices going up and having to tighten budgets.
You start to feel the stress of recession when your pay runs out before your next pay and you keep getting notifications about the failed charging attempts for the bills.
It becomes quite difficult when the bills are on auto-charge and you don’t normally keep a tab on the bills. Over the last couple of months I was stunned to find out how much my water and gas bills were. I was keeping an eye on the electricity bills since I got Solar installed but never really tracked gas and water and it seems that those two are bleeding me dry.
So how to you budget when you don’t really have a lot of bills which can be deemed unnecessary. Entertainment wise I only have Spotify and Netflix accounts. For utilities I am on decent plans which I keep comparing every few months. There are a few things like insurances which I generally review when they are up for renewal.
So how do you face the budget deficit?
First, the natural way is you start dipping into your savings. And these dips become deeper when you also face unplanned emergencies. Personally for me last year has been quite challenging in terms of personal situations and household emergencies that came up. So as a result, I am now down to the last bit of my savings.
Next you seek to find ways to increase your income. Expecting a pay rise for my day job is not very practical. The company is on a hiring freeze due to the economic conditions. But I do really enjoy the work and my team so I don’t want to seek a job elsewhere. But if I did get into contracting I would be in a position to earn more. But contracting also comes with its own insecurity.
Second Job
So the solution I have been thinking of is finding a part time work. Even the Chairman of the Reserve Bank of Australia told the people to work more hours or find a second job. In my job I can’t ask for more hours as Im not in an hourly salary. So the solution is a second job, according to the Chairman of the RBA’s advice.
Ideally I’d love to find a second job in the same line of work. My skills are theoretically in demand. But the the state of the employment market in Australia seems to be that the jobs are full time only. They would say classify it as permanent or contract. But either way it’s a full time job. There aren’t any freelancing or part-time work in my line of work. If there is, I just don’t seem to be able to find them.
There are a good amount of remote work in the US. But they are not really open to people who are not authorised to work in the USA. There is are few fully remote companies. But they are again full-time jobs.
There are other considerations to finding a second job. Legal ones. Conflict of interest ones. Time availability ones. Burnout ones.
Gig work
There is always the option of gig work. There’s Uber and Didi and then there is UberEats and MenuLog and DoorDash and Amazon Flex.
While it’s easier to find work to keep yourself occupied, the payrate is near minimum wage and then there’s also the fuel cost, wear and tear of your car.
The better paying is the ride share work. It seems to pay a little better. But it comes with added complexity of needing to register with CPV. And the car needs to be cleaned regularly and my biggest dislike is small talk with passengers. Im not one wanting to chat when I’m a rider and I don’t want to chat when Im the driver.
Finally any gig work income is subjected to GST and that brings in added tax headaches.