Before You Get a Second Job, Give Your Money One

When people are struggling with their finances, they often think more money will be the key to solving their problems.

Some folks get second jobs or start side hustles, hoping the extra income will fill whatever cash flow gap they have. But it doesn’t always work that way. Often our problems are not because we aren’t working hard enough or making an adequate income. Sometimes it’s because our money isn’t working diligently for us.

I tried filling money holes with more money and failed miserably.

My side hustles were hobbies I enjoyed. But when I couldn’t monetize them, my financial situation got worse, and I got burned out. Oh, and my once beloved pastimes turned into activities I dreaded.

I finally realized that I wasn’t the one not doing enough. It was my money.

I decided to put my lazy money to work instead.

Here’s how to make your money a workhorse:

• Every dollar you earn should have a specific task assigned to it. First, you must come up with those duties by defining your goals (save for a house or pay off credit card bills).

• Then you have to give your money a deadline (like the end of the year).

• Your money won’t work if left to its own devices. Use automatic, recurring transfers to allocate all incoming cash to the appropriate workstation (savings account, investments, or credit card bill). Do this as soon as you get paid.

• Those dollars assigned the role of “bill payer” should stay in one dedicated bank account where they can’t mingle with the other dollars and get distracted.

• Finally, the dollars left over play the most coveted role. They are your Fun Fund. Move them to a VIP account, accessible by your debit card, and let them go to work on whatever your heart desires.

Put your money to work first. If your financial situation doesn’t improve after three months, then pursue increasing your income. But know that more unproductive money will probably worsen your issues. So make your money work for you now.