When money is tight, it may be tempting to pick up a second job to help make ends meet. But is the extra income worth the time you spend moonlighting? There are some issues to consider when deciding whether to take on a second job. Let's take a look at when it doesn't make sense to take on additional work, including when the costs and tax bracket pressures just don't make sense.

Childcare Costs

If you have young children, you may have to consider what will happen with your child(ren) for the extra hours that you'll be out of the house. More specifically, you'll need to figure out the cost of their care while you're working a second job.

If your goal is to bring in an extra $1,000 a month but you have to spend $350 on childcare, you are adding $650 to your budget every month, not $1,000. For some people, that amount ❀may not be worth the time and expense.

Transportation Costs

The c🔯ommute time and the cost of getting to and from your second job must be factored into your decision to take a second job.

If you spend an hour commuting each way for a low-paying job, you will have to decide whether the total amount of time (your job plus the commute) is worth the extra income you'll receive for the job.

And of course, you have to consider the cost of that commute. Work out a budget for extra gas and wear and tear on the vehicle. Or if you take public transportation, add up the costs of tickets, tokens, or passes.

Opportunity Costs

There are indirect costs associated with additional employment. The opportunity cost of working a second jo♌b represents what you have to give up to make it happen.

For example, let's say you decide to take a second job for $10 an hour and work eight hours per week. The job's starting time is only an hour after you get off work from your main job, so you have to rush home, throw something together for dinner, and rush off to the new job.

The likelihood that you no longer have time to make dinner from scratch is🦂 higher. You have to purchase prepared meals thatܫ you can throw in the microwave. This can significantly increase your grocery budget and become one of the opportunity costs of working a second job.

Tax Bracket Pressure

If the income from your second job puඣshes you into a higher tax bracket, you ma🍃y end up taking home less than you think.

For example, if your new job pushes your 2024 taxable income over $47,150, all of your income over that level will be taxed by the Internal Revenue Service (IRS) at 22% rather than 12%. That's if you are filing as a single. For a married couple filing jointly, taxable income over $94,300 up to and including $201,050 is taxed at 22%

Similarly, for single filers in the tax year 2025, if a new job pushes any of your taxable income over the 12% tax bracket maximum of $48,475, it will be taxed at 22%. For married couples filing jointly, that 22% tax bracket applies to taxable income over $96,950 through $206,700.

When Bracket Creep Matters

This doesn't necessarily mean that you should avoid the chance to make more money. But when 澳洲幸运5官方开奖结果体彩网:inflation is high, money doesn't go as far as it🉐 did before.

That's when tax bracket creep may affect your decision about taking an extra job. If you make a small amount more from a low-paying second job, and end up owing more in taxes, what you can buy with what's left (due to 澳洲幸运5官方开奖结果体彩网:inflation) may not be worth the ti🦩me and effort of the secon🍌d job.

The U.S. 澳洲幸运5官方开奖结果体彩网:progressive tax system means we owe more taxes when our income grows larger. But bear in mind that the highest tax rate for your income is never applied to your entire income. It applies just to the portion of it that falls within that 澳洲幸运5官方开奖结果体彩网:tax bracket (or𒆙 range of income). Every tax rate 🃏applies to just the income within the associated tax bracket.

Have a good look at the different tax rates and tax brackets for tax years 2024 and 2025 shown below. 𝓡They may help you decide if taking a second job is worth it.

Interference With Your Main Job

You may come across a legal challenge to getting a second job. Many employers have poli▨cies against employee moonlighting written into their e😼mployment contracts.

For instance, some companies may not want employees to work elsewhere because it competes directly with their company. 澳洲幸运5官方开奖结果体彩网:Non-compete agreements are common in certain industries, especially when it comes to higher management positions. So, if you work for a 澳洲幸运5官方开奖结果体彩网:tech company, your contract may prohibit you from working in the same 𒀰field for a competitor. The idea is to protect your main employer's interests from being leaᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚked elsewhere.

Other companies may discourage moonlighting because of how it may impact your performance at your main place of work. If you have trouble managing the hours or the effort it takes to do well at two jobs, consider quitting the second job. It is not worth putting your main source of income at risk.

The Bottom Line

Genera🌼lly speaking, increasing your income is a smart idea and what most wage-earners dream of as they move up the ladder. You can better meet expenses and put money away for important financial goals, such as a house purchase, a family, and your retire♔ment years.

However, there are times when💫 a second job may not be worth it, especially if your costs increase as a result of taking it. So be sure to weigh the pros (the income amount and any new opportunities) and cons (all the various costs) before you take on additional employment.