According to the U.S. Census Bureau 5% of all American workers – or nearly 8 million people - hold multiple jobs. While more women than men (5.5% vs. 4.7%) work more than one job, the reality is that anyone who has more than one employer has to deal with potential increased stress on several levels, including physical, emotional and even financial stress. While most people who work more than one job do so to either replace lost income or increase their family’s income (35% according to the Bureau of Labor Statistics) it can also create more work when it comes to managing your personal finances. If you’re working more than one job there are some things to keep in mind so that you’re getting the most out of the time you’re investing at work.

1. Add up the costs. If you’re working multiple jobs to boost your family’s financial bottom line it’s important to realize that work can also come at a financial cost. Make sure you’re aware of the costs you’ll have to pay for taking on a second, third or more jobs. For example, will you have to pay for new clothes or a uniform? Will you have to purchase new equipment for your work? Are there training or continuing education or certification requirements? Will you have additional transportation costs such as gas, tolls, and cab, train or bus fare? If you’re driving your own car will the additional commuting potentially create more car maintenance costs? Will you need additional child care and, if so, could you enlist the help of friends and family instead of having to pay for a professional or day care center? Make sure you factor in those costs before you decide to take on additional jobs so that you budget for paying those expenses. Use our interactive budget worksheet as a tool to help think through, and budget for, the potential costs of managing multiple jobs.

2. Know your tax situation. Do all of your employers withhold taxes from your paycheck or are you responsible for paying your own taxes on the income you earn? If your employer(s) are withholding taxes you will see the amount deducted from your paycheck each paycheck; if not there will be no withholding listed on your check. You will receive a W-2 form at the end of the year to use when filing your taxes – it will list your wages and any taxes paid. If you do not have taxes withheld from your paycheck you will need to pay quarterly estimated taxes. You can estimate how much you will need to pay by using IRS Form 1040-ES, Estimated Tax for Individuals; you can learn how through IRS Publication 505 “Tax Withholding and Estimated Taxes.” 

   Keep in mind that if you want to deduct work-related expenses from your federal income taxes you will need to set up an easy system to keep receipts and/or record paid bills so that you have the information you need by the end of the year. Consider meeting with a professional tax advisor about how to best estimate your personal income taxes and how to adjust your withholding (if you’re having tax withheld at any of your jobs) and pay any remaining personal taxes.

3. Create a plan to pay your bills. Working more than one job means you’re likely to have less time to stay on top of things at home, including paying your bills. It’s going to be important for you to have a plan to pay your bills on time so that your credit score doesn’t drop and you’re not using any additional income you’re making to pay late fees and penalties. Learn more about how to create an effective bill-paying system.

4. Selecting benefits. If you are in the fortunate position of having more than one of your employers offering you benefits, take time to evaluate those options and select the ones that are the most financially advantageous for your family. For example if you have a choice between health plans carefully review the benefit brochures to see which would provide more coverage and whether or not it’s worth it to pay a little bit more out-of-pocket (i.e. with a higher deductible and/or co-pays) to get better insurance. The same goes for retirement plans. If both employers offer any type of retirement savings plans see which one would offer more options for how your money is invested and which one would offer matching funds. If you’re working multiple part-time jobs – or you are self-employed - you may not be eligible for employer benefits. Learn more about how to purchase health insurance on your own.

5. Boost your savings, trim your expenses. Often people working multiple jobs have less job security because their jobs are freelance, self-employed or temporary/seasonal types of work and those jobs or projects can be cancelled or disappear without much notice. If you have been used to receiving or having a paycheck automatically deposited into your bank account once or twice a month, you will need to make the mental shift to adjusting to a situation where you are relying on inconsistent or uncertain pay. While you’re managing multiple jobs – especially if any of those jobs are seasonal, temporary or potentially at-risk for disappearing sooner than you expect – try to create and stick to a manageable budget and keep socking money away in your emergency savings fund so that you have the resources you need if the pay goes away. If you don’t already have an emergency fund it’s critical that you create one now. Keep paying into it until you have a solid six months’ worth of savings.

   If you have other important financially-related life goals, such as starting a business, saving for a child’s college education, buying a car or making a down payment on a home, you need to set up some kind of structured plan so that you can save consistently. Consider finding a reputable fee-based certified financial advisor to make sure you’re doing all the necessary things you need to do to create both short and longer-term financial security. Learn more about how to create financial structure and stability without a steady paycheck.

6. Gain control over your credit cards. It can be easy to slip into the dangerous habit of relying on credit cards to help make ends meet when your income fluctuates from having multiple jobs. But it’s especially critical that you manage your debt during this period because you could quickly accumulate high interest rate credit card debt that becomes difficult, or even impossible, to pay off on your erratic income and that would affect your credit rating which could prevent you from getting affordable credit, loans and even a much-needed job in the future. Learn why debt is considered the anti-investment and what to do when debt is overwhelming you.

7. Keep an eye on retirement. It can be hard to imagine not working at all when you’re working multiple jobs, but it’s important to keep your retirement goals in mind and to keep saving for retirement. If your new income is not as much as you had previously re-adjust your budget to see how much you could still regularly deposit into your employer’s 401(k) – if that is a benefit you’re offered at one of your jobs – or an IRA. Learn more about how to save and invest for retirement at every lifestage.

Although you may find it more difficult to carve out time to manage your finances while you’re working more than one job it’s important that you do so. Enlist help from your partner or spouse or immediate family members to do routine personal financial tasks such as paying bills, balancing your checkbook, creating and sticking to a budget, etc. Talk regularly with your family about why you’re working multiple jobs and how every member of the family can pitch in to help reach your shared financial goals. Remember that during this period of time you are going to need to take care of yourself so that you can manage the stress that accompanies having multiple jobs. Learn more about financial pressures and your health and get tips on how you can reduce the physical strain that accompanies your current financial stress.