Earning extra income

In a prior post, I mentioned that I have a way to pay for my credit card expenditures from last week.

I mentioned that I have a professional designation and through networking and asking a lot of questions, I now have a part time job.

I will be working with the education program to mark papers and exams. Really exciting, thrilling stuff! More geek time for me, but if I am lucky I will earn an extra $10K in the next 6 months. This is of course, if I give up 2/3 weeks of my vacation this year to mark exams. It’s a hard trade off but really required in this year that I am trying to set myself up for future success.
I plan to spend:
• ~$1K on new furniture. I feel that it is extremely important to create a place of relaxation and enjoyment in my home. I am not comfortable amongst my mish mash of furniture and it keeps me on edge. Based on this I have already spent $200 on my bookcase. I am going to try and actually wait until I have my 1st cheque before I purchase anything else.
• ~$2.6K will go into my RRSP, which of course is the Condo/ MBA fund
• ~$5K will pay off a monster size chunk of debt!

Important to note: that tax will not be deducted from this amount, since it is contract income.

I will have to do a bit of research of how one handles contract income and what taxes I have to pay. This of course will impact how my earnings will be distributed. I hope that with some luck, I will continue to do the monthly portion of this for another year or two and that will be gravy income to buff up my savings!

For me tax planning is really important because my marginal tax rate is about 31% and any additional income just throws me higher and higher into those almost robbery tax brackets.