The founder of Debt To Dollars, Josh Elwood, provided a summary of his personal work experience and diversification of income sources, especially after giving up a prestigious job with a salary of $98,500 after graduating from college at the age of 23 graduated.
In 2017, after graduating college, Elwood said, he started working as an engineer for an oil company at a salary of $98,500 a year.
At first, he thought he had his dream job. But after seeing top executives work 60-hour weeks on routine trips, Elwood realized it wasn’t the lifestyle he wanted. “My father passed away when I was three years old, so spending time with family has always been very precious to me,” he said.
In 2018, he started experimenting with side businesses. 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 Al Arabiya.net reviewed.
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
Property rent: $1,272
Taxable dividends: $639
“Now I only work 22 hours a week, and I have Thursday and Friday afternoons off and weekends off,” he said. “Whether it’s playing golf with my grandpa, cooking a family dinner or starting new businesses in my community, I have a lot 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
Elwood tried many things that could generate him income, whether he owned rental property or rented his tricycle, but all his first attempts failed.
It wasn’t until he started selling products on Amazon using Fulfillment By Amazon (FBA) that he started making real passive income.
“All I had to do was find a generic product that was needed and send it to Amazon,” he said. “My first product was $1,000 headphones, 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 experience and mistakes, so he started a new project, which later turned into his biggest income, which is 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 posting at least two videos a week at first. Over the next eight months, he gained 14,000 subscribers and 871,000 views of the channel.
As he expanded his audience, he realized his desire to connect more with his subscribers and build a true community. So in October 2020, he started teaching students one-on-one for $50 a month on how to make money selling products on Amazon.
He currently uses Patreon, a platform that provides business tools for content creators to run a subscription service, to host his training sessions.
And in February 2021, he launched his own product search service on Fiverr, in which 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 restructuring
Elwood was actually able 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 of his debt except for the mortgage on his house and car payments.
He says 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 your smallest debt and the smallest amount on the rest.
Repeat until you pay 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 combine 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 ventures 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 being personally liable for the company’s debts or liabilities.
5. Find a schedule that works for you and stick to it
“When I was working at 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 side interests became part of my weekly routine.
Elwood still sticks to his weekly schedule, working Monday through Wednesday and half-day on Friday. His schedule today also includes working 4 to 6 hours, with an hour a day for each task.
“If you don’t set aside specific times to work on your side hustle, your work can get lost in daily priorities,” he said.
6. Set up systems that will save you time in the future
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 it can still increase 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. And he decided to outsource his video editing.
7. Identify what makes you different
Marketing is more than just advertising your product or service; It is to separate yourself from your competitors by making your customer feel something.. they will come back or tell their friends about you.
He said, “When I first started selling on Amazon in 2018, I used product photos that my supplier gave me, but customers were more attracted to the same products offered by other people,” which prompted him to take his own photos of the products and repackage them, which increased his sales. .
And no matter what your business is, decide what makes you memorable and invest in it!