Early Retirement Side Hustle Update Part 3

Retire Early, Retire Often, Saving Money

Leisure Freak Tommy’s Early Retirement Side Hustle Update Part 3 brings me near the end of this sweet gig. This side hustle was to be from October 16th to December 31. Today is the day that I deliver all of my work for approval by my managing team. Then hopefully to the client tomorrow. This has been a nice project and the best work assignment I have ever had.

Contract Extension

Last week was a rough one at the big corporate office as extension notifications were delivered to all contractors. There are always budget issues. Even at a company that makes money hand over fist. Sadly a few people that depend on the contracting income to live and support their families were told they are finished at the end of year.

I was expecting to be screaming happy New Year and return to full retirement soon. Being that I was rationally unreasonable with management by laying out my boundaries for staying beyond end of year. But those crazy executives offered me another Five month extension with boundaries intact. So I told them I would accept.

I was surprised and still don’t know how I feel about it but soon will be more enthused once the new projects can be reviewed. I hope it is as good as this one has been. May 2015 sounds just about right for calling it quits again and returning to retirement.

Side Hustle Income

I have received three pay checks since starting this. The first was a full pay check with my W4 claiming zero dependents and as married but taxed at the higher single rate. Other than the State tax we pay and our donations we have limited tax deductions so I pay taxes out the nose. I had to wait until after that first pay check to set up my 401K account.

—Check number 1

Take home pay was a little over $3000 which I used to replenish my slush fund that kicked in some money to cover our going a little over budget on our California beach and Disneyland family vacation. The rest has been used to cover our Christmas budget. It is nice not having to hit the account to pay for a budgeted item.

—Checks number 2 and 3

My Second and Third pay checks were a little different because I have 80% now going to a new 401K so I saved $3700 for each check. The thus-far $7400 is invested in a lousy 2020 Target Date Fund. Once I leave this gig I will have to move it to an IRA. After my deductions paying for long and short-term disability Insurance and the Social Security-Medicare bundle my remaining 20% check leaves me a couple of hundred dollars take home. This is the first time since retiring early and often that I have been able to do this and it does feel strange to have almost all your paycheck go directly to a 401K leaving only a few dollars. But I am getting over it.

Going Forward

I still have one more check this year to contribute to my 2014 401K at this 80% rate but after that going into 2015 I plan to scale back the 401K contribution amount to 50% to spread it out over the next five months. That is the amazing financial power of reaching financial independence and being open to opportunities that you WANT to do. You can come up with ways to maximize the income and add it to your portfolio.

I am grateful to be able to increase savings instead of spend down money during the holidays.

Have you had the opportunity to increase income to help offset the cost of the holidays?

12 thoughts on “Early Retirement Side Hustle Update Part 3”

  1. Well done on getting the contract extension, on your terms! I’m smiling for you Tommy. 😉 It must feel strange seeing just a few hundred left over from each paycheque but the reason why is pretty sweet.
    We don’t have much to worry about in terms of holiday related expenses since we’ve eschewed gift giving to pretty much everyone.

    1. Thank you, thank you.. With 4 grand kids and another due 12/24 we pretty much have gifts limited toward them for the most part. The Bride and I won’t be exchanging gifts other than taking time to have holiday date nights. Stranger feeling still is their accepting my boundaries and still extending me. It does show that if we make the effort we can make our work life a little more aligned with what we enjoy and with some balance. There are no guarantees but I think its important to try.

  2. May does sound like a good time to go back to full time retirement. Congratulations on the extension!

    We put Christmas spending in our budget all year, so it’s covered. But we did end up making more than usual from our side hustles this month. So that’s fun.

    1. Good for you Emily. I know a lot of people who don’t budget and just charge, charge, charge and worry about it later. I also saw on your blog where your husband is going t work in a new position more aligned with his passions and what he loves to do, and getting a raise to go along with it. I guess there really are Christmas miracles.

  3. It’s great that you got an extension! Especially that you enjoyed the previous project and will be able to go back to retirement after you’re done with it. Also, good job in maximizing your income.

    1. Thank you. I am looking forward to seeing what it is I will be working on. As I have posted this was the best project i have ever worked on. It taught me what I really like doing. The only thing that could have better would be if the consulting firm I am working under offered a 401K match of any kind and if their plan had better investment funds but you take what you can get and make the best of it.
      Tommy

    1. Thank you for stopping by and the comment. I can’t help but feel blessed to have caught that opportunity and it working out like it has. Just goes to show that if you stay open to opportunity it some how finds you.
      Tommy

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