This is a question with a number of answers, but it is a question that you should consider too.
There are three ways I look at this;
- If you already have $1,000 what could you do that would change your life?
- If you were to be given $1,000 then what would you do with it to change your life?
- Then my favorite, if you had a side hustle that earned you $1,000 a month then how would that change your life?
To some people that read this they will not have $1,000 in their bank account and it may therefore seem like a lot of money; hence a good reason to read on.
For others $1,000 may seem like just spare change!
The Standard Use For $1,000
Most people will say that if you have or are given $1,000 then the first thing you should do is to pay off any debt.
It is an answer that was what people from previous generations always said as they have life experience and have gone through bad financial times like the Great Depression in the 1930’s and more recently the Global Financial Crisis (GFC).
In times like these having minimal debt puts you in a far better position and may be the difference between surviving and financial disaster.
Over the years people have also been used to having very stable employment (jobs) and that gave them some security. This is not the same today when people change not only jobs but have to retrain mid-life. People know that you no longer have a job for life, and that you really may need to retrain and try something totally different at least once in your working life.
I’ve lived through the GFC and had that experience where my income dropped significantly and it would have been easy to lose everything. As I have been self-employed I have always been retraining to make sure that I am better at my role, but also I have known that it’s not great to have all your eggs in one basket and to make sure that there is some investment or income for the day that I retire.
That is the key reason that I am so passionate about having a side hustle.
The Real Benefits Of A Side Hustle
The key reason that most people will start a side hustle is to make more money.
But a good side hustle is not about making a few random sales to earn a few dollars here and there. The real benefit of a good side hustle is to create a regular part-time income.
A side hustle that makes a regular income is a true business with regular income that you can rely on, but also that a bank (or lender) can rely on and it should be something that you could one day sell if you wanted.
It’s also reasonably easy to make $1,000 a month with a planned side hustle.
The problem that most people have is they might be lured by promises of big money, or go ahead without a plan.
Keeping Things Simple, But With A Plan
When starting off in any business, but especially a part-time business it is always best to keep it simple but with a plan.
Use systems that are available and not too expensive, and make money doing real business.
The plan that I share with Kiwis is using Trade Me to sell real products, which you can source from wholesalers after you have made the sale and have them shipped directly to your buyer.
This is called “drop shipping” and it’s a good model for starting with as you do not need to buy any products until you have already sold them and been paid.
Using the drop shipping model enables you to get started with next to no money, but also to scale your business without any investment.
You can make some reasonable profits using this method too.
Here are a couple of recent sales and together they show just over $100 profit after the Trade Me fees.
Because you are not having to buy and hold stock (the products) then you can list a number of items and get more sales.
Over time and after you have started making some good profits you may decide to get some of your own products, but with access to good wholesalers it is not really needed.
One Decision That May Change Your Life
There is only really one decision that you need to make, and that is to commit to trying this.
Most Kiwis know how Trade Me works, so that part should be quite easy.
The magic happens with the software that you can use to manage the listings, the sales and accessing the wholesalers.
You might think that this would be expensive too, but it does not have to be. There is a monthly cost for the software and to be honest it is very good value and you will never complain about it.