After I was finished with grad school, I had a job lined up and was feeling pretty good. I moved into the city where my new job would be and was then informed that because of the downturn (this was in spring 09) that the project I was slated to be working on was being pushed back indefinitely, and I was out of a job.
Of course, I wasnt happy about this and needed to get an income quickly. I started brainstorming ideas about businesses that I could start related to things I was interested in, and all of them required a large amount of start up capital – large being way more than I had at the time (which was basically nothing).
THE THINGS I DREAMED OF STARTING
I went back to all the things that my friends and I talked about while bullshitting over beers in college – starting a brewery, opening a barber shop staffed by strippers, and various odds and ends. Like I mentioned earlier, all required a large amount of start up cash, and perhaps not all of them have real potential.
While I was blogging at this time, I wasnt earning much income/any income from the site, and didnt really want to become a blogger. I like going to work, learning new things, and chatting with co-workers. None of this eventually mattered, as I found a job about 2 months later. I kept writing though, and kept all of those half baked business ideas in the back of my mind – I talked them over with friends who have skills in various areas that are related to or ancillary to what I’d like to do.
After earning my first bit of income from the blog, I plowed that income back into the site to grow it and go for more revenues over time, all while keeping some of my original ideas in the back of my head, waiting for the day where I’d have enough cash to get into one of them (barber shop store fronts are expensive!).
I had a specific number in mind to get my blog fund to before I pulled money out of it and used it to start another potential money making venture so I just kept working towards that. I figured what the hay? If one became more successful than the other, I’d still be in great shape having two side hustles! Just recently however, I learned that the number I had in my head was way higher than the number I actually needed!
ONE DAY, BUT IN THE MEANTIME
Needless to say, when I found out about this I was pretty excited and started plotting when I’d be able to reach my goal, all of the exciting marketing strategies I was going to employ with my new side hustle, and of course, dreams of me sitting on a beach sipping mai-tais sitting on a deck overlooking a very large plot of land with a herd of animals for sale and personal use while sipping some bourbon. Just as quickly, I talked myself back into reality and got back into planning for my new venture.
Once I start this new venture (if I end up starting it at all), I’m wondering what to do with the proceeds from that income stream. Should I use them to reinvest in the business, or create a new income stream for myself, or should I frivolously spend my profits and open up that barber shop with my buddies?
The reason that I got into blogging initially was because I wanted to write more and become a better writer, but then once I figured out I could make some money from it, I decided I needed a new plan for that extra cash. I dont want to use it to pay off debt (though I could) I want to use it to create more income streams, giving me more leverage and greater total cash flow.
Opening a business that deals in real products that you can see and touch and throw at people has always been a dream of mine – and blogging has been just the low overhead ticket to where I want to go.
Readers: What are you doing with your side hustle income? Do you spend it on gifts or debt or bills, or are you using it to try to earn more money over time? If you dont have a plan for it, are you willing to make a down payment on a dream or goal you’ve always had?
Photo: Grand Canal, Venice, Sam.
I started a blog because I couldn’t stop writing, but I realized that the blogging cash wasn’t an immediate thing. I still haven’t made a dime from blogging – but that’s not the question. My hustle money tends to go into the same pot that the rest of it hits, but during the months that have a little bit more… we go out a little bit more with friends, and I’m a little less stressed about visiting the peeps. :)
Sounds like a great place for the side hustle money emily! It’s always nice spending time with friends, no matter if you’re at home or at a bar or wherever.
Extra time with friends and family and less stress is what creates experiences in life. Congratulations on being one of the few who is getting to experience that more. And here’s to (raising a glass) your being able to create more of those experiences in the future.
I started my blog for a reason very similar to yours: I figured that writing is the Occam’s razor for me and it is the gateway to many ventures/hustles. I also wanted to write for ‘normal’ people – academic writing had started becoming boring. I still don’t make anything from my blog though am thinking about possibilities – still keeping it as labour of love. My side hustle(s) are consultancies and speaking for now; all that I earn from these goes to pay very quickly some debt that came from a business getting ‘credit crunched’ in 2008-2009. Once this is gone I want to (re)build businesses – the income streams will be divided according to Paretto’s principle. 80% back in the business and 20% for increasing the joy of life (including giving away).
Great application of paretos maria! It’s not a big deal that you dont make any money blogging – yet. It took me over a year (if I remember right) to make anything! Keep up the side hustles and enjoy life!
My web income was used for our house project in 2011. Now that the project is wrapping up, I’m going to keep the money in a savings account until the end of this year, and then I may use it as a massive payment on our house to chop the mortgage in half. My original plan was to pay off the house in 4 years with out regular income, but I can really speed it up if I use my side-gig income too! I bet we could get rid of it in less than 2 years! Then it’s time to get ultra-wealthy! :)
From reading your site you guys did a lot of work on the house in 2011 – that’s pretty sweet that you were able to pay for it all with blog money! Do you tell guests that “life and my finances dot com renovated the kitchen”? Sounds like you’ve got a good plan going forward too! Good luck getting out of house loan debt!
For me, blogging income has basically replaced the raises that I haven’t gotten the past three years as our company has worked to recover from the hit they took during the economic downturn. As such, any revenue basically goes to fund long term savings goals, such as home repairs, funding for replacing one or both of the cars down the road, funding pre-school costs for the kids, and our vacation / travel fund.
Great place to use the side in come and what a great way to think of it beagle. You’ll be rolling in the money once the company turns the corner and starts giving raises again!
I started blogging because I loved to write. Now that I quit my full-time job, I use my blogging income and the other online jobs it has lead to, to help our family make ends meet and to pay down debt.
Another great use for blogging money! Paying down debt is basically creating more money!
Nice work Jeff, I love that you are looking to find other ways to leverage your side income. Personally I think you are on the right track, find other ways to make it work for you. Take a risk and do something that you really get into, it is likely it will be the best money you ever spent! Oh yeah, I think you should also reward yourself with something you want as well, sounds like you have earned it.
Good luck!
Thanks Cactus! I’ve been trying to figure out what to do with it – I looked into leveraging it to buy some acreage and see if my income could cover the monthly payments (it looks like it can, if I go over 30 years) and maybe that will be my treat. cautious about taking on more debt, though.
While I do enjoy the writing aspect of blogging, I also have a goal of generating an income stream from blogging. I have made a little bit of money and am looking at another opportunity to leverage those funds. You are right Jeff, you can’t reach your dream if you do not take the risk!
FT –
The best part about these funds is that if you wouldnt have started blogging, you wouldnt have had them at all. It’s like playing with the house’s money!
I’m so excited for you!
Mike and I blog as an outlet for all these ‘things’ we make. Yes, we want to make money doing it. If we make money it lends to more time towards experimenting in making all these ‘things’.
Great point molly – it’s really a means to an end, of where you want to be. Also, I like all of the things you make
I like your plan to re-invest it. I also love to write. But, I also love planning out another successful blog. There is just something about creating something from nothing, putting the hardwork in, and having it pay off… It’s definitely not worth the effort if you are just going to waste the money on unnecessary items.
Totally agreed corey –
there’s nothing more fun than taking a whole heap of nothing and turning it into something awesome – at the end of the day you can say “i built something” and feel good about it – even better if it generates revenue!
All these comments and no one mentioned the stripper. Did they read the same post I read???
I think the great thing is you are having this discussion about what to do with your side income. That’s a great problem to have. My only suggestion is to move slowly into new ventures. Think them through carefully and run the “worse case imaginable” numbers to make sure they work. Then jump with both feet!
Bourbon and a herd, I love it Cowboy!
I’m on it, Dr. Dean. Get your hair cut by strippers? Pfft, I’d cancel my appointment tomorrow!
Thanks dean! And I was wondering when that would come up myself – I personally thought it was a great idea! Who wouldnt want a sweet haircut, right?!
Once I decide what to do with this side money, I’ll surely run the numbers and figure out if it’s a good deal or not – if not, i’ll just sit on it for longer.
there is one nearby, haven’t tried it yet though believe it or not…
FWIW, I’ve been using my blog income to build up my investment portfolio. It’s cool to be able to build an active portfolio and (indirectly) derive revenue from it by posting about the ideas I have while managing it.
Income streams aren’t yet my thing – cash flow just isn’t alluring, for whatever reason – so I’m sticking to long-term capital appreciation in so far as how I invest blog revenue. I guess when it comes to the blog, I find the cash flow VERY appealing!
I like the financial markets over additional online income just for the diversification. Finance is a lot more scalable than finance blog in that 20 hours of research could produce 1 investment idea, which you could easily put $100 or $100,000. The same doesn’t seem to be true of blogging, but there’s also less capital at risk with a new online venture.
Sounds like a great spot for your blogging profits. Great point on risk with blogging – it’s so low, that it doesnt really matter if you fail.
I haven’t withdrawn any of my side income yet. It all goes into a separate fund for side income, and I use some of it to pay for expenses related to my blog. I eventually plan to draw on this account when I take my now side work full-time this year, which is a dream of mine.
That is awesome! It’s so nice to hear another yakezie member/challenger taking their side income to a full time job! Best of luck.
I started blogging in the name of writing and self-expression. I am not making any side income but if I ever would I’d use it towards paying off debt and saving up for a house.
Good thing you’ve got a plan for your side income – I didnt really expect to make any money at first, so I didnt have a plan for it when I did. Honestly, I was kind of surprised by the fact that I was making income. The nice part about it is that I wasnt tempted to spend any because it was hard to access.
I am like Jeffrey and have left my side income in the account for now. Once it gets to a super substantial amount my plan is to transfer it to a savings account. I would like to use it for maternity leave as well as the start of a school fund for our future kids. Great idea though on using it to invest in other income streams. I guess I do this a bit with my online stuff but once the money really starts rolling in, I will use it for plan A.
Great plans miss T! Seems like you and derek have similar plans for your side income!
I am using all side income this year to fund my dream trip to Patagonia, Chile. I typically have used my side income to pay down debts, but this trip is important to me, and who knows when I will get another chance in my life time.
That is a totally awesome use of side income – when you had the opportunity to go to chile, did you immediately earmark all side-income funds for the trip?
i use my “side income” to design a lifestyle that i want to live, not one that has been prescribed for me. that has always been, and still is, the number one reason why i do what i do. i love the intention of this post Jeff, and all the best to you! would love to hear about your progress
Glad to hear you’re using your side money to do things your way! That’s exactly what I plan on doing.
Don’t leave me hanging… What are you going to open up? A barber shop staffed with strippers? That might do well in NYC.
Jai
I havent really decided yet – but i’ll do another post when i’m ready!
I ended up investing about half of my blogging income in 2010. The other half paid for miscellaneous things, such as fixing our foundation (ouch!), traveling to PA for Christmas, etc. I think I’m a bit too willy nilly about what to do with my writing income…your post has given me something to think about. Afterall, if you don’t give your money a purpose then it tends to go away.
Interesting that you were able to invest half of the money – i think I’m having the same problem as you. I enjoy the extra cash, but I dont know where to go with it, so i’m just letting it sit there. I took some out one time to pay some bills, and I regretted it.
Ideally, it would just accumulate or be reinvested in other opportunities. I hope to avoid spending such income, and would rather hold it for a longer-term purpose. We’ll see how that works!
It’s pretty easy to let it accumulate as long as it’s not linked to a regular spending account of yours. The time it would take to transfer from the account to my bank has been a huge hurdle for me spending it, and was part of what prompted this article.
Ha – I’ll let you know when I get it! Seriously though, I would probably re-invest it in things to grow my site, even give it away if that would help. Once it is generating monthly income, then I would consider using it for other things. Ideally it would be a “transition fund” if I ever decided to make the full-time jump.
Just keep doing what you’re doing john – you’ll get there at some point. It took me quite a while. I’ve spent a bit of money on the site, but most has just sat idle for quite a while. It’d work as a great transition fund if you wanted to quit your job!
I reinvested some online income and the rest goes into the general pool. Most of that will be invested eventually and should generate some dividend income. Meanwhile, I am keeping an eye open for any business opportunity.
Great plans joe! Sounds like you’ve got something to do with yours, which is far more than I’ve got.
Jeff,
Thanks for sharing your plans on what you should do with your blog income. I strongly encourage that you pay off all of your debt first before you go off investing (I realize mortgage debt is not always possible to pay off or the best plan considering your financial situation or need for a tax shelter). When you free up your debt, you actually do not have to send payments to the debt anymore, hence you already created some income, just not passive yet.
Once your debt is paid off, regardless of whether it is a barber shop or strip joint…j/k ;) have a strong business plan and do your due diligence to crunch the numbers and calculate your rate of return on your investment. Not all passive income streams are equal. Most important, DIVERSIFY, DIVERSIFY, oh and….DIVERSIFY your investments! Best of luck to you! :)
Thanks for the suggestions taline – I’ve been working on debt freedom for the past 2 years, and that’s where most of my regular job income goes. I know that I could use this money to get debt free faster, I just happen to like the current plan I’m on with my regular job. Most of these income streams I’m considering wouldnt be passive at all – they would be something like a hobby or an additional side venture. Not completely passive, but not completely active either. Most of these investments wouldnt be made in stocks or bonds, they’d be made in me (through a new business venture) or in physical property of some sort.
I cant agree with you more on the diversification, though!
I’m all about property investments…maybe because I own a few apartment buildings. Believe it or not, it is more passive than you may believe. I’m shocked at how little I do to earn passive income through them. Don’t get me wrong, finding the right property, setting up things/forms correctly with your tenants…etc is a lot of work but it is in the beginning and you reap the benefits later. There have been several months where I literally did nothing and made money….wooohoo!
Since I just started earning income, I am reinvesting it in growing the blog. Eventually, I expect to use the income for some of my wants vs. needs.
Great plan kc – most of my initial income was plowed back into the site to improve design, etc.
I started my blog because my friend sold his blog for over a million dollars. And he did it in less than 3 years. I have to say, I’m not quite there yet.
That is impressive charles! Obviously, I havent sold my blog for a million dollars (or this story wouldnt be about growing bigger dreams, it’d be about my dreams). If that’s something you’re interested in, it can be done!
I’ve been remiss in using my blog income for anything other than savings, maintenance, and the Yakezie Network. I haven’t updated FS in 2.5 years, and I will probably do some updating.
I guess the biggest dream of all is to use the blog money to donate to charity and replace my income so I can work from anywhere in the world. I’d like to do some charity work overseas and work with handicapped children in the States too. Something about them, I well up every time I see them and want to just quit everything and fight for them.
Sam
Sounds like a great plan for your extra income sam. I’d really like to use my income to further my charity goals as well, though I havent exactly determined how I would like that to look in the future. I think I’ve gotten to a point where I dont need any updates on the site so most income that I’ll be getting is going to be parked for a while.
Sam, anytime you want more information about helping handicapped children, I would happy to share my my knowledge/experience.
Sounds good. Do you have any posts about the subject I could check out? I see this group of handicapped children every once in a while when I go for lunch at the food court, and I marvel at the adults helping them, and the peace some of the children display. Makes me want to help too.
I would like to so much that I could give it away to worthy causes. For now, our young family needs all the cash we can generate. Mortgages and college tuition take the bulk of any blog earnings.
Tell us more about your plans Jeff. Barbers chairs are highly collectable (random side note).
Interesting thoughts hunter – It’s great that you’re able to generate spare cash for your family and goals for their future! I had no idea that people would be so interested in my plans, so I may write a follow up post (or work harder and dream bigger!)
Good luck with your bike lane site hunter (and LH)
My plans with the income I create is to save and invest for the most part. My portfolio is pretty bare at the moment (even though I am young enough for it to be that way) and I really want to start contributing more to my 401k and bonds and funds as well.
It would be nice to find and or create a product to sell. That is one of my biggest dreams too, but it is quite risky for that as I find it difficult to compete with nationwide retailers.
My portfolio is pretty bare at the moment as well, but I did max out my IRA for the first time this year! I’d like to get something to sell as well, but I dont know if I could sit there and watch something I created completely flop (as it probably will).
I would like to be able to use the extra income from this blog to pay down some of the debt or even put extra payments on my mortgage. I would like to eventually be able to use this money for my wife and I to be able to take more vacations together throughout the year.
Sounds like some great goals smart wealth! I’m focusing all of my regular job income on paying down debt, so i’m leaving this sit and using it for fun now. Though earning more income is very helpful for paying down debt, i’m just trying to do it with my regular job.
The previously undisclosed goal, since you brought it up, is to make enough money per month so that my wife no longer has to work. We could get by currently on just my (day job) income, but not at the same lifestyle and investment levels. With our 3rd child due in August, the timing would be perfect for my side-gig income to become steady enough that she wouldn’t have to continue working.
that is an awesome goal matt – it can totally be done. It sound like you’re already on the right track by being able to live off of your income so your expenses must be in check. Now all it takes is some work to replace your wifes income with your online money! Good luck!
I usually save and invest most of my side hustle income, with a bit of splurging on the side. Girly stuff like pedicures and that sort of thing are my small indulgences.
sounds like a great plan barb!
I’m with you Jeff, I want to have a real business that sell products you can see and touch. I love the idea but I plan to spend any side income I make on paying off debt. I know it’s not the most exciting but I just don’t feel like I’m getting anywhere unless I’m paying off chunks of it. I’ll always have ideas and plans and ventures to launch but I don’t want to have consumer debt forever!
Glad i’m not the only person making money on line and wishing to have an off line business as well. Even though you’re planning to pay off debt with side income, you can still dream – your debt will be gone eventually then you’ll have more cash flow from your regular job and more from your side hustle!
Hi Jeff! One of my favorite lines was, “Just as quickly, I talked myself back into reality and got back into planning for my new venture.” That shows true {successful) business owner restraint!
I’d stick with reinvesting into your business, and maybe a little bit of frivolous spending as a reward. As a woman, I have to at least say, “stay away from the barber shop strip club” ;)
I feel like hard work has to pay off with a little bit of play. I split my savings into paying bills, and going skydiving next month!
Thanks for the tips kelsey! Going skydiving sounds like a great use of extra cash! It cant be work all the time.
For me all my side income goes to help pay for school + pay for travel funds. Plane tickets can be so expensive and a couple hundred dollars here and there really does help.
Great point juan – plane tickets get really expensive, and driving takes a whole bunch of time!
Hey Jeff, I’d love to just have enough supplemental income where a main job is no longer a necessity, but an option. And as for your ideas from college, my friends and I had the same ones! Hooters Hair Salon and of course the local brewery. Actually, I was going to drive cross country with a friend and write a book on America’s breweries…..ended up doing the drive and not the book though.
that’s a shame CNC – i’ve been to a lot of americas breweries and I can tell you they are awesome and varied – with great beer to boot. Maybe I’ll start writing that book!
Oh don’t get me wrong Jeff….I still hit the breweries…..just didn’t write a book about them :)….but yeah, you should do it!
Awesome – I’ll have to send you an email and show you something I’ve been working on!
I started blogging as a way to track my own goal and share what I was doing. As a result of it I have ended up with a few side hustles and ore coming. I love it. Currently my income is split between paying off debt and investing for the future. Within the next 2 months it will start to all go towards investing which is really exciting.
Good luck with your dream. I am sure you can do it.
That is awesome kylie – congrats on upping your income streams.
I have one impossible dream to achieve with my side hustle, to have my first home without mortgage. Just started..destination is far ahead. Once that is done I’ll go for charity with this money.
That dream isnt impossible OCAAT – it will just take a lot of hard work – good luck.
Definitely make sure to put the extra money back into other money making opportunities. In the end, why make $5 and quit? When you could make $5 off of that $5. If that make sense. :)
I totally understand what you’re saying jeff, and that’s exactly my angle!
What would be your income stream goals for 2012?
[…] I had a post over at the Yakezie network this week on income streams and big dreams. […]
My own dream is to get out of the rat race and hit financial independence. Not necessarily be retired or super wealthy — that can come later. I want to feel a direct connection between my work and the results.
I also believe that relying on a job for 80% or more of one’s income is just too risky. We don’t invest all of our money in one stock; why should we rely so much on a job for income? In the beginning it’s unavoidable, but that’s what I want to move away from. :)
I am quite young (early 20s) but it seems from my extensive reading and limited experience that the best thing to do with ones income is (in order):
1.Pay for necessaries (food etc – being frugal) and bills and giving yourself some enjoyment
2.Pay off debt – for example paying off credit card debt of £1000 with interest at 24% APR is the equivalent of giving yourself an extra £20 each month which you wouldn’t normally have, essentially giving yourself a bigger income stream. This should normally be priority as percentage-wise it will usually give you a better return than putting the equivalent £1000 into a high interest savings account (say at 5%). Furthermore debt can be a drag on your progress to financial freedom.
3.Creating diversified investments that give you the opportunity to earn an income stream and a capital gain (Property with rent, Shares with dividends)
4.Paying for luxuries out of income streams. For example when you want to by a new car at £10,000, don’t pay for it on credit. Instead make enough investments so that the yearly income streams will pay for the car. Not only do you have a new car but you have impressive investments as well. Of course this means that you will have to wait longer for the car but now you have an incentive to make investments.
Let me know what you think. All feedback is appreciated.
Blogging is a noble passion as it allows your to help others. And, in turn, enrich your own knowledge about things you love to do.
I have not made a cent from blogging, not surprising at this point however. But I do make a bit of money online from other sources (surveys, etc). This is usually most efficiently spent on Amazon gift cards, so for the most part my side money goes to gifts if it is one of those times of the year, or to something special for myself (the other 360 days of the year). I am much better able to enjoy treating myself knowing it did not cost anything, since I often deprive myself niceties in the name of saving money.
I liked this article! Looks like it was published a couple of months ago but I couldn’t help but to comment anyway. Gives me inspiration. I’m a full-time freelance writer, and I started blogging to write about things that actually interested me… but I’m hoping to gradually make the switch to blogging for profit soon to replace some of the writing work I need to do to meet my income goals.
[…] online income, real estate income, dividend income, and job income is many times not enough.“Creating An Income Stream To Grow Bigger Dreams” by Jeff at Sustainable Life Blog.“Diversify Your Traffic” by Eric at Narrow […]