What should I do with extra overtime money?

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hustler
Posts: 63
Joined: Fri Apr 30, 2021 5:46 am

What should I do with extra overtime money?

Post by hustler »

I realized that my latest gig allows me to earn overtime of around 3k each month without much of compromise (overtime rate is 180$ per hour)

Now this is completely extra money, that I wasn’t expecting at all.

What is your advice/recommendation for me about using that money?

I am near 45, close to 2 million net worth at this point.
Monsterflockster
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Re: What should I do with extra overtime money?

Post by Monsterflockster »

Spend it.
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cheese_breath
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Re: What should I do with extra overtime money?

Post by cheese_breath »

Donate it to worthwhile charities, and maybe just a little to Bogleheads website maintenance.
The surest way to know the future is when it becomes the past.
Trader Joe
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Re: What should I do with extra overtime money?

Post by Trader Joe »

hustler wrote: Sat Jun 19, 2021 10:39 pm I realized that my latest gig allows me to earn overtime of around 3k each month without much of compromise (overtime rate is 180$ per hour)

Now this is completely extra money, that I wasn’t expecting at all.

What is your advice/recommendation for me about using that money?

I am near 45, close to 2 million net worth at this point.
Invest the money.
Ron Ronnerson
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Re: What should I do with extra overtime money?

Post by Ron Ronnerson »

Spend, donate, and invest it.
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Padlin
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Re: What should I do with extra overtime money?

Post by Padlin »

I used to save mine up to get something I normally wouldn't splurge on, like a high end home theater.
Regards | Bob
Ron
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Re: What should I do with extra overtime money?

Post by Ron »

We used ours to pay off our home note/mortgage; a 30-year note paid off in 5.5 years.

Our current (retirement) home was built in 1994. It was paid off in the fall of 1999. Shortly thereafter, we took the monthly payment along with the extra and invested it into the market.

You can research what happened in the fall of 1999 and into the early 2000's. We made out quite well, leading to our retirement earlier than planned.

FWIW,

- Ron
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Marmot
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Re: What should I do with extra overtime money?

Post by Marmot »

hustler wrote: Sat Jun 19, 2021 10:39 pm I realized that my latest gig allows me to earn overtime of around 3k each month without much of compromise (overtime rate is 180$ per hour)

Now this is completely extra money, that I wasn’t expecting at all.

What is your advice/recommendation for me about using that money?

I am near 45, close to 2 million net worth at this point.
Pay down debt.
Marty....don't go to the year 2020....Dr. Emmett Brown
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CyclingDuo
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Re: What should I do with extra overtime money?

Post by CyclingDuo »

hustler wrote: Sat Jun 19, 2021 10:39 pmI realized that my latest gig allows me to earn overtime of around 3k each month without much of compromise (overtime rate is 180$ per hour)

Now this is completely extra money, that I wasn’t expecting at all.

What is your advice/recommendation for me about using that money?

I am near 45, close to 2 million net worth at this point.
Invest
Pay Off Mortgage Early
Stuff the College Education Funds (if pertinent)
Cushion the Cash Savings (for upcoming variables and wants)
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
MishkaWorries
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Re: What should I do with extra overtime money?

Post by MishkaWorries »

Time is more important than money.

Don't work overtime and spend your free time with family and loved ones doing things you enjoy.
We plan. G-d laughs.
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RickBoglehead
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Re: What should I do with extra overtime money?

Post by RickBoglehead »

Don't do anything different than you do with your normal earnings. Allocate portions to savings, emergency fund, etc. Income is income.
Avid user of forums on variety of interests-financial, home brewing, F-150, EV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
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ClevrChico
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Re: What should I do with extra overtime money?

Post by ClevrChico »

When I had un-budgeted expenses, I used to volunteer for overtime to cover it. (Things like car repairs, moving expenses, etc.)

Otherwise, invest it.
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celia
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Re: What should I do with extra overtime money?

Post by celia »

If you were putting in more than 40 hrs a week, you probably need to take a vacation. It doesn’t need to be far, but you at least may need a change of scenery. And don’t take your computer with you or use internet on your phone. :D. Get out and see the world.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
Topic Author
hustler
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Re: What should I do with extra overtime money?

Post by hustler »

Monsterflockster wrote: Sat Jun 19, 2021 11:05 pm Spend it.
Being minimalistic, not too many options to spend. Will be spending more on travel for sure though!
Topic Author
hustler
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Re: What should I do with extra overtime money?

Post by hustler »

cheese_breath wrote: Sat Jun 19, 2021 11:07 pm Donate it to worthwhile charities, and maybe just a little to Bogleheads website maintenance.
Will consider this for sure. TBH, it doesnt occur to me naturally yet, but then, I am still evolving!
Topic Author
hustler
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Re: What should I do with extra overtime money?

Post by hustler »

Trader Joe wrote: Sat Jun 19, 2021 11:09 pm
hustler wrote: Sat Jun 19, 2021 10:39 pm I realized that my latest gig allows me to earn overtime of around 3k each month without much of compromise (overtime rate is 180$ per hour)

Now this is completely extra money, that I wasn’t expecting at all.

What is your advice/recommendation for me about using that money?

I am near 45, close to 2 million net worth at this point.
Invest the money.
Cant go wrong with this one for sure. Will bump my Fidelity managed account monthly contributions for sure
Topic Author
hustler
Posts: 63
Joined: Fri Apr 30, 2021 5:46 am

Re: What should I do with extra overtime money?

Post by hustler »

Padlin wrote: Sun Jun 20, 2021 7:35 am I used to save mine up to get something I normally wouldn't splurge on, like a high end home theater.
May be look into some home renovations, that I was keeping on holds
Topic Author
hustler
Posts: 63
Joined: Fri Apr 30, 2021 5:46 am

Re: What should I do with extra overtime money?

Post by hustler »

Ron wrote: Sun Jun 20, 2021 8:03 am We used ours to pay off our home note/mortgage; a 30-year note paid off in 5.5 years.

Our current (retirement) home was built in 1994. It was paid off in the fall of 1999. Shortly thereafter, we took the monthly payment along with the extra and invested it into the market.

You can research what happened in the fall of 1999 and into the early 2000's. We made out quite well, leading to our retirement earlier than planned.

FWIW,

- Ron
Great to hear that! Here's something to think about though ...

What if, you would have kept investing that extra money from 1994, instead of putting that in mortgage (I suppose mortgage rates were still less than or around 5%)?

My mortgage is 1.99% at this point and my perspective is to take advantage of this low percent loan as much as possible.

Happy you could retire earlier, congratulations!
edudad
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Re: What should I do with extra overtime money?

Post by edudad »

Keep extra for taxes, iff anything will be owed, else, buy some meme stocks like AMC :sharebeer
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