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The Overtime Opportunity
Week 13: Grow Income, Tactic 4
The Overtime Opportunity
Week 13: Grow Income, Tactic 4
What can you do this week?
Confirm what, if any, overtime hours are available if you’re a non-exempt or hourly worker.
Create a simple WIFT (What’s In It For Them) message if necessary for your employer to give you approval. Focus on the needs of your company and why you are the person to get it done.
Become opportunistic in your approach to overtime to maximize your income growth potential.
Explore Time & Half Calculator and Double Time Calculators to model what’s possible.
Start scheduling and start planning.
A Real Life Example of What’s Possible
My father was a mechanic but had the opportunity to work overtime either during the week or on weekends. As his demands for income grew with 5 children in private school and then college, he was able to significantly increase his income in some years. This was not done by seeking manager roles and returning to college but by taking every opportunity to work overtime in a thoughtful, strategic way.
Third shift paid a higher hourly rate than first and second shift (shift differential), so that was step one to earning more income before factoring in overtime.
From there, additional hours during the week were also overtime eligible at time and half rate. He could extend his 3rd shift a couple hours into the morning and pickup extra income.
Working overtime on the weekends became the game changer as Saturdays paid time and half and Sundays paid double time, both on a higher hourly rate because it was third shift.
This strategy to increase your income does not come without some trade-offs.
Irregular sleep and missed time with family were something he had to do in order to catch up.
It was only for a season however. He was able to return to a “normal” work schedule after some years and is enjoying a comfortable retirement.
By The Numbers
If Bob makes $40 an hour in a skilled trade or other hourly employment role, his annual income is $76,800.
If Bob can move to third shift where he can earn $45 an hour, his annual income is now $86,400.
If overtime were available at time and half and he were able to pickup 200 additional hours over the course of the year. At $67.50 per hour that’s $13,500 additional income this year.
If overtime were available at double time and he were able to pickup 100 additional hours over the course of the year, that’s $9,000.
Another way of looking at this overtime scenario is Bob worked an additional week this year (37.5 hours) or a little more than an extra hour per day (5.8 hours per week) overtime.
While working overtime may not be an option for everyone, for those with this option it is another tactic for growing income, thereby increasing their potential for building real wealth.
To learn more about comprehensive planning or coaching engagements available, checkout my website and schedule a call.
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