The flexibility of working part-time appeals to a large proportion of people. There’s the ability to work school hours if you have a young family, or work three days rather than five-days-a-week to enjoy more of a work/life balance.
However, the main downside of part-time work is of course a reduced income. And that means making some adjustments to your lifestyle to ensure that your expenses don’t exceed your income.
That doesn’t mean you shouldn’t make the change. There are plenty of other benefits to be had from part-time work if you can manage financially. With a bit of thought, planning and consideration for the pros and cons behind such a move, anything is possible.
Here are some things to consider if you’re planning the move to part-time work.
Pros of working part-time
- More time with family
This is a big plus when your children are young. The first few years of your child’s life are incredibly important, and parents often want to be there to experience all the ‘firsts’ like crawling, walking and talking.
- Less stress
A reduction of working hours goes hand-in-hand with a lower workload, and this can take an enormous amount of stress and pressure off you. If stress is a major factor in your lifestyle that needs to be reduced, part-time work can literally be a lifesaver.
- More opportunities
Rather than limiting your opportunities, working part-time can open up new doors. Many employers look for staff who can job share so they can get a broader skill set into their organisation.
- More time for other interests
With more time to do whatever you want, you have the opportunity to earn extra income in a contract or freelance role on your ‘free’ days. Or you can simply enjoy a hobby or passion.
- Prepare for retirement
Working part-time gives you an indication of what it will be like when you’re not working at all. Is not working right for you?
Cons of working part-time
- Lower Income
Fewer hours equals fewer dollars. With less money to live on, your lifestyle may need to change.
- Less superannuation
With superannuation being a bonus that comes with income, less income equals less super. You can get around this by making sure you have another income stream such as an investment property.
- Less time to get your work done
Sometimes there’s the pressure to keep up with the output and productivity of full-time staff, resulting in higher levels of stress. Rather than finishing a task the next day, you often need to make sure it gets done immediately.
- Hours creep
Thinking “I’ll just get this done before I go”, or “I’ll go in a bit early to make sure I get it done” quickly leads to that extra half hour or so each day that doesn’t get paid.
Every personal and family situation is different, so there’s no absolute right or wrong. Great financial advice will help you make sure the decision is right for you.
To meet with one of our financial life managers and make the most of your part-time change, please call us on 02 9241 2575.