Comments on: Why Relying on Overtime Dooms You to Failure http://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#utm_source=rss&utm_medium=rss&utm_campaign=why-relying-on-overtime-dooms-you-to-failure A personal finance blog teaching you how to live debt free and use credit wisely. Fri, 10 Feb 2012 15:18:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Weekly Round-Up: Runaway Cathttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42943 Weekly Round-Up: Runaway Cat Sat, 24 Oct 2009 22:50:59 +0000 http://www.nodebtplan.net/?p=3884#comment-42943 [...] Why Relying on Overtime Dooms You to Failure: If you’re depending on overtime to make ends meet, consider cutting expenses first. I’d then look at increasing income with a side hustle. [...] [...] Why Relying on Overtime Dooms You to Failure: If you’re depending on overtime to make ends meet, consider cutting expenses first. I’d then look at increasing income with a side hustle. [...]

]]> By: Jeff @ Sustainablelife bloghttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42159 Jeff @ Sustainablelife blog Tue, 20 Oct 2009 14:45:18 +0000 http://www.nodebtplan.net/?p=3884#comment-42159 I read this article too, and was quite surprised by this woman. She says that she lives within her means (because how is going to be interviewed by a magazine and actually fess up to mistakes they made/are making) and that because her husband is not getting overtime, they cant make ends meet. Overtime is not really part of the budget, as you say, it should be for savings or paying down debt. It does sound like the overtime was fairly common, but that's not an excuse for including it in your budget. I was just surprised when she said she was "living within her means". It doesnt really sound like that's the truth. I read this article too, and was quite surprised by this woman. She says that she lives within her means (because how is going to be interviewed by a magazine and actually fess up to mistakes they made/are making) and that because her husband is not getting overtime, they cant make ends meet. Overtime is not really part of the budget, as you say, it should be for savings or paying down debt.
It does sound like the overtime was fairly common, but that’s not an excuse for including it in your budget.
I was just surprised when she said she was “living within her means”. It doesnt really sound like that’s the truth.

]]> By: Financial Samuraihttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42144 Financial Samurai Tue, 20 Oct 2009 13:19:03 +0000 http://www.nodebtplan.net/?p=3884#comment-42144 You're right Kevin, regarding basing your budget off of overtime is somewhat dangerous. That said, if overtime is a common practice, it's not unreasonable. In finance, for example... their year-end bonuses generally always account for 30-80% of their entire compensation. Let's average it out at 40%. ($100K base, $50K bonus for example). That is how the compensation is structured, and although it may not be wise to live off more than your basis, it has just been institutionalized. Last year was dangerous, hence why it's always good to spend the salary and SAVE the bonus. You’re right Kevin, regarding basing your budget off of overtime is somewhat dangerous. That said, if overtime is a common practice, it’s not unreasonable.

In finance, for example… their year-end bonuses generally always account for 30-80% of their entire compensation. Let’s average it out at 40%. ($100K base, $50K bonus for example). That is how the compensation is structured, and although it may not be wise to live off more than your basis, it has just been institutionalized.

Last year was dangerous, hence why it’s always good to spend the salary and SAVE the bonus.

]]> By: Kevinhttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42143 Kevin Tue, 20 Oct 2009 13:16:41 +0000 http://www.nodebtplan.net/?p=3884#comment-42143 That's the key difference, Jeff. Yes, you relied on it. But you've adjusted, cut back, and made changes to adapt to the new situation. That's all it takes! That’s the key difference, Jeff. Yes, you relied on it. But you’ve adjusted, cut back, and made changes to adapt to the new situation.

That’s all it takes!

]]> By: Kevinhttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42141 Kevin Tue, 20 Oct 2009 13:15:38 +0000 http://www.nodebtplan.net/?p=3884#comment-42141 Woah, hold on there. I'm not saying overtime is bad. I'm saying basing your budget off of that overtime when it is not guaranteed (that is, part of your contract or something like that) is not smart. OT is great. Who doesn't love earning 1.5x more than they normally make? Woah, hold on there. I’m not saying overtime is bad. I’m saying basing your budget off of that overtime when it is not guaranteed (that is, part of your contract or something like that) is not smart.

OT is great. Who doesn’t love earning 1.5x more than they normally make?

]]> By: Financial Samuraihttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42140 Financial Samurai Tue, 20 Oct 2009 12:54:48 +0000 http://www.nodebtplan.net/?p=3884#comment-42140 I'm not sure if I agree with this. I know nurses here in San Francisco who tell me they LOVE overtime. How can they not, when one makes $200,000/yr by working 15 extra hours a week? Work overtime, just keep your spending the same. We've gotta work on the income side of the equation as much as the cost side! Best, FS I’m not sure if I agree with this. I know nurses here in San Francisco who tell me they LOVE overtime. How can they not, when one makes $200,000/yr by working 15 extra hours a week?

Work overtime, just keep your spending the same.

We’ve gotta work on the income side of the equation as much as the cost side!

Best, FS

]]> By: Jeffhttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42139 Jeff Tue, 20 Oct 2009 12:53:18 +0000 http://www.nodebtplan.net/?p=3884#comment-42139 Ok I know I'm going to get baslted, but here I go. I was one of those people who relied on OT. I work in the automotive business and have for 14 years. I have always had OT, usually to the sum of $2500 per month. Not anymore though. I have had to face the music and make the adjustments to live within my means. Yes I made the mistake, but I've learned from it and I'm pressing on. I can't say the same for many of my co-workers though. Many are in foreclosure and haven't made peace with their mistake. I hope they wake up soon because that is no way to live. I was able to find that second job until I pay my debt off. The jobs are there, even in Detroit. I'm just seeing a lack of effort of people trying to find them here. Jeff Ok I know I’m going to get baslted, but here I go. I was one of those people who relied on OT. I work in the automotive business and have for 14 years. I have always had OT, usually to the sum of $2500 per month. Not anymore though. I have had to face the music and make the adjustments to live within my means. Yes I made the mistake, but I’ve learned from it and I’m pressing on. I can’t say the same for many of my co-workers though. Many are in foreclosure and haven’t made peace with their mistake. I hope they wake up soon because that is no way to live.
I was able to find that second job until I pay my debt off. The jobs are there, even in Detroit. I’m just seeing a lack of effort of people trying to find them here.
Jeff

]]> By: Leehttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42135 Lee Tue, 20 Oct 2009 12:41:21 +0000 http://www.nodebtplan.net/?p=3884#comment-42135 So very true. Relying on the unreliable is just plain daft. Overtime has helped me get out of $30k of debt this year (almost there - 1 month to go!), but will I rely on it to live on afterwards? Hell no. It'll just be extra money in the bank. So very true. Relying on the unreliable is just plain daft.

Overtime has helped me get out of $30k of debt this year (almost there – 1 month to go!), but will I rely on it to live on afterwards? Hell no. It’ll just be extra money in the bank.

]]> By: grapkulechttp://www.nodebtplan.net/2009/10/20/why-relying-on-overtime-dooms-you-to-failure/#comment-42132 grapkulec Tue, 20 Oct 2009 12:04:22 +0000 http://www.nodebtplan.net/?p=3884#comment-42132 overtime? why didn't they rely on blackjack or national lottery? :) overtime? why didn’t they rely on blackjack or national lottery? :)

]]>