The cash squeeze on Australian families has prompted more people to look to second jobs to claw back the cash they are paying in higher mortgage repayments.
The current high number of job vacancies – 470,900 according to the Australian Bureau of Statistics – is giving borrowers an opportunity to save by working a casual job in addition to their existing full or part time roles.
Many have snagged Christmas casual jobs in the past month, while others have taken on permanent jobs.
Seven consecutive interest rate rises this year combined with year-long price hikes across everything from petrol to food has put increasing pressure on household budgets.
Moonlighting or getting a side hustle is great way to supplement an income and there are dozens of employers crying out for staff, said Paul Zahra, chief executive of the Australian Retailers Association.
“We’ve got over 46,000 job vacancies in the retail trade at the moment, it’s an increase of 14 per cent in the three months to August,” he said.
“Anyone wanting and willing to work at the moment is getting work because there’s so many vacancies available. Pretty much at the moment you can pick your hours because there’s so much work available.”
Zahra’s advice for those seeking a casual retail job is to choose a shop they buy from regularly. He said the advantages were two-fold.
“It’s very simple – choose a brand you love and shop at, and then it doesn’t feel like work,” he said.
“Obviously all retailers offer generous discounts to their staff, so it’s a bit of a double whammy. You want it to be local so you’re not travelling too far.
“By doing that you get to do something you enjoy doing.”
But there are also some warnings about second jobs. Finance broker Chris Foster-Ramsay said burnout was the most obvious.
“Where lenders will have concern is around the second job in addition to a full-time role because of the chance of burnout and everything collapsing is much higher,” he said.
Extra income is a great way to save. However, borrowers who want to use it as leverage for a loan need to show lenders proof they have been in the role for six months or more, said Foster-Ramsay.
“With a secondary income, they want to see that it’s not just a short spurt, they want to see that it’s sustainable if they are going to take it into consideration for working out borrowing capacity,” he said.
Interest rates are at a nine-year high of 2.85 per cent and the Reserve Bank of Australia has flagged further raises in 2023.
Australians will be looking for innovative ways to save. Foster-Ramsay advises starting with a budget review.
“The first thing to go will be the discretionary items like dining out, coffee, holidays and more often than not, cuts to multiple TV subscriptions,” he said.
“The other way to look at raising a bit of cash is selling stuff. Things that have been accumulated over time that can be sold at local marketplaces or online can always raise cash.”
