In today’s episode, I interview Jeff Kosola from deliverawaydebt.com. I love Jeff’s story. I think you will too. Especially if you are struggling with a lot of debt to pay off.
Have you ever wondered how much pizza delivery drivers make? Apparently, it’s enough!
Jeff took on the classic part-time job of delivering pizzas on the weekends so he and his wife could get out from over $100,000 in debt.
Since he started working his part-time job, he’s been able to pay down over $45,000 of the debt from his earnings.
Jeff also took to the personal finance blog-o-sphere with this story. Look for his new online video venture: Minute Money Tips
Resource: Part-time job search engine
Table of Contents
Jeff’s Story: Pizza Delivery Side Hustle
When Jeff Kosola heard Dave Ramsey talk about delivering pizzas in an effort to attack his debt with gazelle-like intensity, Jeff took Ramsey seriously. He stopped a new pizza place near his home and got a job.
Jeff and his wife had acquired over $100,000 of debt. They had just returned from working in China, and his wife didn’t have a job because she was staying home to take care of their little boy.
Combine that with living a lifestyle that was above their means, and Jeff’s credit card debt had spiraled out of control. He was playing the balance transfer game, and then taking out home equity loans—basically, he had broken every debt rule in the book.
They looked for personal items they could sell to make more money, but they didn’t have much. If you need help getting out of debt, take a look at all of this post.
Still working his full-time job as an engineer at General Motors, the idea of delivering pizzas seemed to be a good fit for Jeff because he could do it during nights and weekends. Jeff worked on Friday and Saturday nights from 5pm until 1am and Sunday evenings from 5-11pm.
Getting the job was easy. Since Jeff had a car and insurance and knew the area well, all his employer was looking for was his willingness. Jeff was paid an hourly rate of $6, plus $1.50 for a delivery charge and then whatever tips he got.
In the first year, his average hourly rate was around $19, which translated to him making around $400 a week.
Getting Serious About Paying Down Debt
For the first 11 months, Jeff and his wife used his part-time income to finance their existing lifestyle. They were serious about reducing debt, but not serious enough to actually do much else about it. After nearly a year of non-stop work and no debt reduction, they finally woke up.
Jeff and his wife consulted outside help from a local financial coach who helped put spending systems in place. Together, they evaluated their budget in order to live on his GM income so they could apply 100% of the pizza delivery money to retiring debt.
Within one month, they began paying down debt. Read this post for ideas for creating accountability with your finances.
In a year and a half, they had taken over $100,000 worth of debt and reduced it to $30,000.
It is not a hard job. It is actually fun. I mean I love delivering pizza honestly.
Jeff’s Tips for Delivery
For those considering pizza deliver as a viable option for a second income, Jeff has 2 tips for maximizing the amount one can make:
- Customer service is key. Repeat customers are common, so he tried to ensure he knew their names and that their order was exactly what they wanted. He also carried a few extra sodas in his car to give away in case of order problems. And if there ever were an order problem, he would eat the cost of it. People remember those details, he said.
- Drive fast. The sooner you deliver a pizza, the sooner you can get back to the store and in line to deliver more. The more you deliver, the more money you make.
Thanks to paying off the debt we did, it was simple to qualify for a new house and get out of ours right now. That was the biggest thing –to improve our life so we did not have to wait another 3-4 years to do it. That was the focus. In that time I had started out with a son. WhenI was delivering I had a daughter. Now I have another son on the way. With all those kids coming down the line, I want to get rid of the debt so I do not have to worry about it.
Where to Find Part-Time Jobs
Whether you want to delivery pizzas or work somewhere else, there are a couple great resources for finding good part-time jobs. They will help you pay down your debt or meet whatever financial goals you have.
Listen to the Podcast
Here are a few of the questions I ask Jeff:
Motivation for Part-Time Money
- What led you want to make part-time money?
- What lead you into that much debt?
- What was the catalyst to finally wanting to get rid of debt?
About Pizza Delivery
- What was it about delivering pizzas that worked out for you?
- What was the appeal of the job?
- What was the job application process like? What skills did you need?
- How many hours a week did you work?
Family and Dealing with Debt
- How did you wife feel about this?
- What allowed you and your wife to come together under that common goal?
- Why did you need a financial coach?
- What did the financial coach teach you?
- How long did it take to pay down your debts?
- Did you do anything extra to pay off your debt?
- What is it about your debts that allows you to press pause and focus on the down payment?
Making Money in Pizza Delivery
- What kind of money were you making an hour at delivering pizza?
- How did you stick with it?
- How do you make the most of your efforts at a pizza delivery job?
- What mistakes did you make early on?
- Are you sick of pizza yet?
Blogging About Debt Reduction
- Why did you start deliverawaydebt.com?
- Do you make money from your blog to help you more with debt reduction?
- What’s next for you?
To see the full transcript, click show