Side Gig Changes and How That Affects My Early Retirement Goal

Table outdoors with open laptop, pen, notebook and a glass drink with straw

At the end of 2022, I started a second job or side gig as the cool kids call it 😊

I was attracted to this job because it was a work from home situation. My main job as a health worker involved going to work at a physical building and being on the frontline all through Covid – it could never be a WFH job. Consequently, all through Covid, I wondered what it was like to work from home.

Well … now I can say that I really love working from home! I especially love the short commute, from my bedroom to my study, haha!  And connecting to people from all over the country.

I was auditing businesses in my industry online. Before Covid, it was done onsite.

We were given 9 months notice that we would be expected to go back onsite in October this year. So for most of the year there was discussion about how many days they expected each auditor to work. In the end, they wanted a minimum of 3 days of availability per auditor.

Therefore for me, that would mean giving up 2 days of work at my main job (which I’ll refer to as Job 1 from now on) and being available for 3 days a week for Job 2.

We didn’t audit any businesses in September as we prepared to go back onsite in October. There were new platforms to master, new ipad to get used to, new processes etc. There was A LOT of NEW.. !!! But that also meant there was virtually no income (besides some hours spent training) from Job 2 in September.

So I’d like to update you on how my new working arrangements will impact my finances and my end goal of retiring at 55.

To be clear – the goal has not changed. But how I get there has indeed changed. And what that retirement looks like may change.

 

So ... what's changing?

Hours spent working, for a start.

I was working 4 days a week for Job 1.

Hours for Job 2 were more variable. I spent Wednesday making calls and attending Zoom meetings. PLUS working before going to Job 1 and after coming home from Job 1 for most Mondays and Tuesdays. And sometimes the weekends if it’d been a busy week.

What’s different now is that I will work 2 days for Job 1. And Job 2 will be done on those 3 assigned days. No more before or after working Job 1 on weekdays.

But the best part is that I’ll have my weekends back! In the past, I was always wondering at the back of my mind, if there were any online submissions waiting for me to assess. So I never relaxed properly.

I only realised this when I was on my recent holidays and didn’t have this thought hanging over me all the time. And how freeing that was – not thinking about potential work waiting for me.

The bad thing about the new arrangement is the instability of Job 2. Although I’m available for 3 days, it doesn’t mean that I’ll have businesses to audit on those days. The schedule may change as businesses request a change to their audit dates and the new dates don’t fit into my available days.

Therefore my income from Job 2 will be very variable. More on that later 🙂

Besides the income instability, there is also a LOT more administration work involved with Job 2 – just the retention of receipts and getting them reimbursed will need some getting used to. Plus I’m not loving the driving in peak hour traffic to and from the businesses.

The good thing though is that I’ll have more free time during the not so busy seasons. I’m hoping that I will use this time to explore more of what I’d like to do in retirement. Or pick up an extra day at Job 1 if they were desperate for staff (or I need the money?!)

This was back in 2019 when it was a new car for work - now it's mine!

I bought a car!

I’ve always driven a work car provided by Job 1. So I always knew that I’d need to buy a car when I eventually retire from Job 1. It’s been one of my saving goals for 2 years. Luckily the Future Car sinking fund was fully funded earlier this year.

Because I’m reducing my hours to only 2 days a week, I will no longer be entitled to use this work car.

I also need my own car to travel to the businesses I’ll be auditing for Job 2.

It has always been my intention to purchase the car I’m currently driving from Job 1 when I retire. This has only brought forward that purchase.

I’m very fortunate that my employer sold me the car at the residual amount left on the lease plus the penalty for breaking the lease instead of the full market value.

So now I have an extra category to budget for – a car! This is a huge change for me 🙂 The last time I owned a car was straight out of university.

I’d forgotten how many expenses owning a car entails – there’s registration, insurance, service / maintenance, petrol, tolls, roadside assistance membership. And I plan on saving for a future car.

Having all these expenses now will give me a more realistic picture of future expenses in retirement.

 

What's happening to finances now?

Travelling to businesses to perform audits is very much a part of Job 2 now we’re back on site.
 
I will be reimbursed 85 cents per km and also paid a travel allowance if my return trip to and from home is more than 75km.

My plan is that the fee per km payment goes to paying for petrol, service, registration, insurance and roadside assistance membership ie the ongoing costs of owning a car. I’m hoping that this will also cover my petrol and tolls for non work purposes.

I don’t have a target or timeline for the Future Car sinking fund. But I just want to set some money aside for my next car. Who knows how much the extra driving will contribute to the wear and tear of the car? It would be good to be prepared, just in case. I do plan to drive my car for as long as I can.

Ok, so that’s the car expenses sorted. Theoretically, anyway!

 

What about the rest of my expenses?

Income from Job 2 is very variable.

It was always variable before but I could rely on the stable income from Job 1 for my needs and saving goals. The variable income form Job 2 was a bonus. It funded my wants eg a cleaning service, pilates, TMJ specialist sessions AND it added to my savings goals dramatically.
 

Now my stable income from Job 1 is halved. More on that later.

For Job 2, I can audit a maximum of 2 businesses a day so it’d be a maximum of 6 businesses a week. Our fee increased by 20% for the onsite model.
 

However, work is not guaranteed. During the busy seasons, I may be assigned 6 businesses a week but during the quiet season, I may be assigned none.

This is not even accounting for the businesses already assigned to me opting to change their assessment dates and then no longer fitting into my schedule. By the same token, I may be assigned another business because it no longer fits into another auditor’s schedule.

Our quarterly schedules are published about 2 months before the next
quarter. This will allow us to look for extra shifts in our other jobs
to supplement income if needed.

I’ve stopped salary sacrificing into my superannuation (retirement account) from Job 1. And combined with the recent income tax cuts, it turns out that my income from Job 1 is not quite halved, more like 60% of what I used to take home.
 

Therefore I’ll need to audit 1 business a week plus income from Job 1 to meet current living expenses. This is also assuming that the car expenses are funded from the various allowances of Job 2.

 

piggy bank with glasseswith blackboard in the background with retirement

And saving for retitrement?

To recap or bring you up to speed, I’m at the point of saving up a 2 year cash buffer. This would help mitigate any sequence of returns risk. If the sharemarket performs badly in the early years of my retirement, I will use the cash and allow the sharemarket to recover before having to draw down from this portfolio.
 

I was at first very worried about the very variable income of Job 2 and how that would impact my goal of retiring at 55 which was only a short 2 years away.

We are currently in the quiet season. My schedule this quarter (13 weeks from October to December) shows 23 businesses. So if nothing changes, I’ll have income from 10 businesses to allocate to the 2 year cash fund this quarter. This amount equates to half of what I would have saved had Job 2 not changed.
 

I can feel my blood pressure rising as I type this.

Also, the majority of the 23 businesses are scheduled for October and there are only 2 in December. This means that I have to budget well and not spend it all before December!

To this end, I made a list of bills due in these 3 months in addition to Christmas expenses. I will fund the all the necessary bills first before saving anything in my 2 year cash buffer fund.

I am nervous because this is different to what I’ve done since I found FIRE. I’ve consistently saved and invested first then dealt with expenses. I feel like I’m reverting back to life before FIRE when I spent first then saved what was left over. But hopefully, this time round, it’s just a temporary situation.
 
I have to remember WHY I agreed to this change and continued working Job 2.

 

Yarragon in Gippsland, Victoria

Why did I say yes?

Essentially I said yes to ADVENTURE.
 
Part of Job 2 entails travelling within the state, out to rural country towns. I haven’t seen much of my own state. So what better way than to be paid to do so?
 
Right now, there are auditors in every state and territory so my travel is limited to Victoria. But I’ve put up my hand to travel to other states if they ever need one in an emergency. Fingers crossed, I get a remote assignment eg Christmas Island or Norfolk Island – how cool would that be?
 

I’ve had 2 country trips so far and they were so much fun! I don’t mind the driving because the scenery is beautiful and it’s not start stop every 30 seconds like it is in the city. And the local produce! I am reimbursed for breakfast and dinner on these trips – there are maximum limits – but they are generous enough for decent meals. After the work is completed, I have time to explore the area. Bonus!

There was a steep learning curve when I first started Job 2. I had to pass an auditing course, learn how to use different platforms (I am quite tech challenged at the best of times!) and interact with people online. That’s not even mastering the job itself.

With the onsite model, there was once again new IT to grapple with; new processes for the actual job and also new invoicing systems to deal with claiming reimbursements for travel, meals and accommodation for country runs.
 

I like the constant learning – it keeps me on my toes! And it’s another aspect of this adventure.

The second reason I said yes is the thought that I can continue with Job 2 when I retire from Job 1. So far, I’m having a blast with Job 2. As long as I’m enjoying Job 2, I’m happy to keep going. 

By then, it won’t matter so much that my schedule and income is variable. In fact, the extra income will be a bonus. Or I can use it first before drawing down from the shares portfolio, especially when there is a sharemarket downturn. Therefore I may not need to save as much for the 2 year cash buffer fund.

 

How am I able to say yes to adventure?

I didn’t want the uncertainty of future income to prevent me from saying yes to adventure. But … and this is a BIG but … I have saved enough in my various sinking funds and my investments are on track. So I felt I could say yes even though future income will be unpredictable.
 
I just needed to give myself permission to access these funds, namely the Emergency Fund and the 2 year cash buffer fund, should I need it in the next 3 months.

So far, for October, I haven’t needed to access them. Phew! I was able to pick up 2 extra days at Job 1 so I’m not nearly as stretched as I thought I’d be.

I am still grateful to past me for saving up!

Right now, I have nearly 11 months saved up in the 2 year cash buffer fund because I’ve decided to tip the Emergency Fund into it. It would be awesome if I could end 2024 with 12 months saved. We’ll see!

 

Final thoughts

It seems contradictory – this idea of saying yes to adventure now when the ‘end’ ie retirement is so close at hand.
 

But I really don’t want to wait until I fully retire to say yes to adventure.

There is definitely uncertainty ahead.

Will I be able to save up the 2 year cash buffer fund on time? Will I retire from Job 1 anyway? Will I continue with Job 2 after I retire from Job 1? What if I get sick of the country trips? And so on.
 

I’m choosing to embrace the uncertainty – that is a part of being on an adventure, after all. You never quite know the ending until well, the end.

I’ll keep updating you all!
 
In the meantime, I’m slightly more consistent posting on Instagram and Facebook so you can follow my progress, more in the moment, if you like 🙂

 

Have you changed your job close to retirement? How has that change impacted your retirement goal?

6 Replies to “Side Gig Changes and How That Affects My Early Retirement Goal”

  1. We’re four years out 🤞 and I have been considering it, but so far I haven’t taken the leap because I’m part-time and can still (mostly) WFH. A couple of jobs that have come my way have all been full-time and a minimum 60% in the office. I don’t dislike my job, I’m just a bit bored.

    The FIRE movement has changed and we all know that FI isn’t about the money in itself. The money is the tool, the goal is to be FI so you can choose what to do with your time. So far you love job 2, enough that you would consider still doing it when you retire early. I agree, why not bring some of that into your life now? Why wait for an arbitrary number or date? Your FIRE pot has brought you the ability to flex, and that’s what you are doing. Congratulations!

    1. Thanks, Mrs ETT! I agree that the FIRE movement has changed and we no longer have to wait for that magical day when our net worth / FIRE number hits a particular number.

      JL Collins calls it F*** U Money and The Mad Fientist on Paula Pant’s Afford Anything podcast recently called it No Thank You Money – I just love the fact that this pot of money has allowed me to take some risk now.

      And I think it’s ok to be bored at work if you also have other projects/passions outside of work 🙂

  2. I’m a week away from starting the Ligas’ Crazy Road Trip to Uluru and beyond, so I definitely get the need for adventure!
    You lost me with all the numbers, but it sounds like you’ve stress-tested and thought this through, so go for it.
    🙂

    1. Wow, that trip came around quickly! ENJOY your drives and sight seeing! Uluru is amazing 🙂

      Yeah, I think my anxiety about the numbers are showing – it’s only a temporary break from saving towards the 2 year cash buffer fund. I need to chill!

  3. Love the update! You are making so much progress it is very inspiring, and it has prompted me to review my situation, and review my goals. This is always a good thing!!!
    Keep up the good work, your blog is fantastic, thank you. x

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