Active income - Side hustle
Stock market is good, because it’s more liquid and you can buy/sell from the computer. Nevertheless, you need lots of money to make more money. Let’s say your portfolio have a return of 20% this year. 20% on 100$ is 20$.
Same portfolio with a high net worth person $1,000,000 but returns of 2% = $20,000. As you know trading fees are $10 flat. Buy, then sell = $20. That’s heavy if you invest less than $1,000.
Before you have that 1 million dollar, you need to gradually move up. This is where “Dollar value” comes into play.
Your goal is to make your first $1,000. Then, your next $10,000. Then your next $100,000. It’s easier to invest with $100,000 than $1,000. Focusing too much on getting a “High percentage” over “dollar value” is the trap for low-income people.
Let’s focus on your first $1,000.
*If you work and make a decent living and you love your job. Please keep doing so. Invest your money and secure a nice retirement. This section here is about side active income. How much more can I make outside of my job. Assuming you have 1h free per day and 2 days off per week. (Some free time for yourself).
Step 1: Declutter. Take everything you don’t need and sell it.
Verify the price on google, amazon, ebay.
List it on online platform like Facebook market, kijiji, craiglist, ebay, etc.
Keep track of your sales. (use Excel)
Bonus: Downgrade your stuff. You can always buy them back later when you are more wealthy.
· e.g.: Sell your expensive Canada goose jacket ($1200+) and buy an used ski jacket on facebook market (50$)
“Damned if you do, damned if you don’t.”
“There will always be someone in the market willing to buy it at a certain price. “
“One man’s trash is another man’s treasure.”
Step 2: Buy Low, Sell High
Visit garage sale, estate sales, donation used store, Clearance section at retail store (Winners, Walmart, Marshalls)
Look on Online platform for “Free” stuff. (facebook market, Kijiji, etc.)
If you see something you think it’s valuable, quick google search and buy it “low”, then list it “high” at 80% of market price.
e.g.: Find abs roller for $5, look on amazon $40, buy it and list on facebook market for $30.
“It’s not about the money, it’s all about the lesson learned.”
Bonus: Help a friend sell their used stuff and keep 50% of the sales as commission
They Win: Your friend save time and get rid of things sitting in their house.
You Win: Make some extra cash during your spare time.
Step 3: Sell a service. (It depends on what skills you already have or are currently learning.
Tutoring: Teach the thing you learned. ($20+/h) (Math, music, etc.)
Language: Teach your language (ENG, FR, Mandarin, Japanese, )
$20-50 per 1h meeting.Finance/ Accounting: File income tax ($40 per case)
Computer science: Reformat PC, clean dust, upgrade, Anti-virus, Microsoft suite ($100 per case).
Programmer: Make a website ($100+ per case)
Graphic design (Photoshop): Adjust picture, make ads ($100+ per case)
Photography: Take professional picture ($100+ per case)/ Wedding picture ($500+)
Cooking: Catering service ($100+)
Labor work: Cut hair ($20 per head), House cleaning($15+), Baby-sitting ($15+)
Clean windows: $100-200+ per case
Cut trees: $1000+ per case
Garbage disposal: $100-200 per case
Write chords for guitar songs + tutorial video: $30+ per case
Step 4: Flip bigger things.
Strategy: Buy used, clean, renovate, sell for higher price.
Computer/ smartphone/tablet
Bicycle
Car
House
Step 5: Idea of added-value
Strategy: “buy low”, “transform” and “sell high”
Examples:
Buy materials from Home depot, build a white board (for school), Sell at higher price on facebook market.
Buy woods, put them together, sell a "table” for higher price on facebook market
Step 6: Develop deeper skills in the things you were doing before. Open a business. Quit your job when income is higher.
Example: Work as accountant, open accounting practice, sell accounting services
Example: Flip used stuff in garage sales
Enough cash -> Start amazon or shopify drop shipping business
Example: Trader at firm -> trade stocks on your own
Comments:
It’s easier to make money with money.
e.g.: real estate or stock market
The first goal is actively make money to $1k then $10k. Invest and watch it grow. At 100k, the gains are bigger. 10% return on $100k is $10k. Actively work for $10k is tough. Sitting on $100k is easier. And you have more capital to take risk if you want to venture in bigger active income projects.
“Money can buy you free time. It’s up to you after that to create happiness.”
SimpleLifeBalancing.