Overtime can be a blessing, as it is not afforded to the average worker. It can also be a curse for those in high-stress fields like firefighting and public safety. You must approach overtime with proper respect and understanding or, like fire, it can scorch the earth.
There are many factors to consider with overtime, including financial wellness; time; and, most importantly, your health. For many workers, especially those in high-stress fields like public safety, overtime impacts not only finances but also physical, emotional, and mental well-being.
Follow the golden rule
To be truly in control of your financial wellness, your base salary needs to cover all your essential monthly expenses—everything from your mortgage to your groceries and anything else required for day-to-day living. Relying on overtime to cover these necessities leaves you vulnerable. To throw your entire financial plan into chaos, all it takes is an injury, an illness, or even a vacation that prevents you from working overtime.
With most of my clients currently working in or retired from public safety, I’ve seen firsthand how depending on overtime can lead to severe financial difficulties, particularly in high-risk professions. Some have even faced foreclosure or bankruptcy after a string of missed overtime opportunities. It’s dangerous to assume, “It won’t happen to me.” No one is immune to unexpected events, and financial ruin is a fate you do not want to tempt.
Take care of yourself
Your career may be very rewarding; however, it is also one of the most physically and mentally demanding ones out there. And, while we like to think we’re invincible, age catches up to us all. What was once youthful health, energy, and resilience can quickly turn into back pain from something as simple as sneezing too hard or falling asleep on the couch. Add in the slower recovery times that come with aging, and a harsh reality may unfold.
To retire in good health—both mentally and physically—you may need to adequately manage or even limit your overtime hours. Many workers who rely on overtime to cover their bills put more than just their finances at risk.
Plan for retirement
Adjusting to living off a pension can be challenging. If you’ve structured your finances as recommended above, it makes this transition easier. For retirees who once counted on overtime, the reality of such a significant income decrease can be jarring. Retirees in this position often have no choice but to take on a second career to maintain the income they were accustomed to. Rather than enjoying retirement, they find themselves working full-time again to make ends meet.
Maintain a healthy work/life balance
This is a concept that is often discussed and can be difficult to achieve. You already sacrifice this balance with the holidays, weekends, and the general shift schedule you keep. Overtime can further interfere with this balance. Overtime work without adequate rest can also result in lack of energy or focus, which is dangerous in the public safety arena and can put your life—or the lives of others—at risk. Not depending on overtime pay gives you more flexibility to be with your family and friends, care for your health, and take time to simply enjoy life.
The bottom line
Am I saying overtime is bad? Absolutely not. But, think of both today and tomorrow. The ability to properly benefit from overtime can have a significant positive impact on your future. Use overtime to work toward a financial goal or to improve your financial wellness. Funding a savings plan and paying off high-interest debt faster are examples of good use of overtime earnings. Saving more for your retirement years may provide you with the best chance of retiring with both your health and your finances intact.
Wouldn’t it be much more rewarding to work in retirement only if you want to? Would it not be more rewarding to pursue a hobby or interest and live that life you have worked so hard to build? Approach overtime with the respect and understanding it warrants.
If you have any questions on this content or would like a complimentary initial financial wellness consultation, please contact the author.
Bio
Marie Canterbury is a fiduciary Financial Advisor based in Northern Virginia. She specializes in helping clients simplify the complexities of personal finance and investing. Through a detailed financial planning process, Marie assesses her clients’ needs, goals, and financial situations, providing tailored recommendations to help them work toward their objectives.
She holds the designations of Chartered Retirement Planning Counselor (CRPC®) and Accredited Asset Management Specialist (AAMS®). You can reach her via phone at (571) 210-6060 or email at Marie@CanterburyWealth.net.
For more information, visit her LinkedIn profile: Marie Canterbury on LinkedIn, or schedule a Zoom appointment using https://calendly.com/marie-canterbury
Her office is located at:
3975 Fair Ridge Drive, Suite 250N-C, Fairfax, VA 22033.
