Josh Ellwood, founder of Debt To Dollars, summarized his personal experience in working and diversifying income sources, especially after giving up a prestigious job with a salary of $98,500 after leaving at the age of 23 graduated from the university.
In 2017, after graduating from college, Elwood said, he started working as an engineer for an oil company, earning $98,500 a year.
At first he thought he had landed his dream job, but after seeing top executives work 60-hour weeks of routine travel, Elwood realized it wasn’t the lifestyle he wanted. “My father passed away when I was three, so spending time with family has always been very precious to me,” he said.
Russia is studying a proposal to buy $16 billion in Chinese yuan
Russia is studying a proposal to buy $16 billion in Chinese yuan
In 2018, he started experimenting with side business. He set a goal of earning $3,450 per month (after taxes) to support his lifestyle. Once this income was reached, he decided to leave his full-time job, according to what he told CNBC, and reviewed Al Arabiya.net.
Elwood left his job as an engineer in February 2021. Last year, he earned just over $189,000 from his seven sources of income, which included:
YouTube Google Adsense: $82,349
Shipping from Amazon: $13,886
Patreon (training): $33,114
Fiverr (product search): $29,014
Affiliate Marketing: $29,496
Rental property: $1,272
Taxable dividends: $639
He said, “Now I only work 22 hours a week and have time off on Thursdays, Fridays and weekends, whether it’s playing golf with my grandpa, cooking family dinners or starting new businesses in my community, I have plenty of time to invest. “In the people and things I care about most.”
Here’s the best way to turn your side hustle into your full-time job, all while working fewer hours:
1. Don’t be afraid of trial and error
Ellwood tried many things that could generate him income, whether he owned rental properties or rented his tricycle, but all his first attempts were unsuccessful.
And it wasn’t until he started selling products on Amazon using Fulfillment By Amazon (FBA) that he started generating real passive income.
“All I had to do was find a generic product that was in demand and send it to Amazon,” he said. “My first product was $1,000 headphones, and then I moved on to iPhone cases and sports gear.”
Elwood earned over $25,000 in 2019 through his Amazon store. He wanted to share with others what he learned from his experiences and mistakes, so he started a new project, which later turned into his biggest income, his YouTube channel.
2. Build a community around your expertise
In February 2020, he launched a YouTube channel known as Debt To Dollars. He committed to initially posting at least two videos per week. Over the next eight months, he gained 14,000 subscribers and 871,000 views for the channel.
As his audience grew, he realized his desire to connect more with channel subscribers and build a true community. So in October 2020, he started mentoring students individually for $50 a month on how to make money selling products on Amazon.
He currently used Patreon, a platform that provides business tools for content creators to manage the subscription service, to host his training sessions.
And in February 2021, he launched my product search service on Fiverr, where customers pay him to find high-demand, low-competition products – popular toys, pet supplies or travel accessories – to sell on Amazon.
“These community businesses have helped me reach my long-awaited income goal of $3,450 a month,” he said.
3. Prioritize debt management
Ellwood actually managed to quit his job as a full-time petroleum engineer when he was making less than $4,000 a month because he had paid off all his debts except for the mortgage on his house and car payments.
He sees that there are many methods you can use to pay off debt, but he likes the “Debt Snowball” method because it helps you see your progress.
Here’s how it works:
List all your debts from smallest to largest.
Make the largest payment on the smallest debt you have and the lowest amount for the rest.
Repeat until you’ve paid off the smaller debt, then move on to your next smaller debt.
4. Prepare the legal side of your business ahead of time
It is important to integrate your business with where you live for practical reasons, such as asset protection and tax benefits. It also has a psychological benefit.
He attributed some of his past failures to treating side businesses as hobbies rather than business. He said that once he established a limited liability company (LLC) in Texas in 2019, he took everything more seriously and professionally.
An LLC has some of the best features of a corporation or partnership in protecting its owners from personal liability for the corporation’s debts or liabilities.
5. Find a schedule that works for you and stick to it
“When I was working my full-time job, I didn’t have the motivation to work on the side,” he said.
But once I put pen to paper and stuck to a schedule, working on my silkscreen was part of my weekly routine.
Ellwood still keeps to his weekly schedule, working Monday through Wednesday and a half day on Friday. His schedule today includes working 4 to 6 hours, with an hour a day allocated to each task.
“If you don’t set aside specific times to work on your side hustle, your work can get lost in your daily priorities,” he said.
6. Set up systems that will save you time in the future
I invest in business models that require the least amount of time. Elwood points out that this is the only way he can work 22 hours a week and still increase his multiple income streams. But remember that automating things and creating the most efficient systems may take some time at first.
He also advised that every month you should review how you spend your time to find ways to make these processes more efficient. For example, Elwood spent 4 to 8 hours a week editing videos. He decided to outsource his video editing.
7. Determine what makes you different
Marketing is more than just advertising your product or service; It separates yourself from your competition by making your customer feel something. They will come back or tell their friends about you, even better.
He said: “When I first started selling on Amazon in 2018, I used product photos given to him by his own product supplier, but customers were more attracted to the same products offered by other people, which prompted him had to take his own photos of the products, and repackage them, which increased his sales.
No matter what your business is, decide what makes you memorable and invest in it.
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