If you have been following my blog then you know currently I am looking to exploit side hustles like never before. I mentioned my previous attempt to use my TLC license to drive a cab with the new Dryve app, only to be thwarted as I found out that Uber and Lyft has capped the number of taxi drivers in NYC due to the restrictions that the city had imposed on new cabs which were causing congestion and the suicide of some yellow taxi medallion owners who had bought in to the pre-Uber system of licensing.
The solace that I received was in the form of signing up for Uber Eats where I realized I could get paid (although not well) for biking around the city and exercising. You may turn your nose up at $12 to $15 an hour but I look at it like who wouldn’t want to get paid to get some exercise?
Delivering for Uber Eats requires a background check which takes a few business days and the day I received approval, I just so happened to ride my bike to work. I was ready to make a few deliveries after work only to find when I came to the bike rack I lock my bike at, the back tire was flat. Apparently, I had rolled over some small pieces of glass or something on the way to work and a slow leak started that deflated the tire while I was working. So much for that, well until I can get a new tire at least.
Going on Offense on my Side Hustle
I cant spend all my free time riding around for peanuts anyway. I decided to take up Gary Vee’s selling challenge on eBay and Facebook Marketplace and read up on how to do it.
The strategy is very simple. I will start with eBay. You look up a few goods that you are familiar with the price on eBay and filter for those that have been recently sold.
Source: eBay
These could be anything you know about, shoes, action figures or electronics. As long as it can be shipped then you can sell it.
Source: eBay
Once you have an idea of some goods and their market prices, you then go to one of the box discount stores like TJ Maxx, Marshall’s or in my case, an NYC institution known as Century 21. You then try to scout out items there for which you are familiar with the price. You usually should be able to find a few items you can mark up and sell online to someone who doesn’t have access to the local deal you do.
In my case I did it backwards. I first went to Century 21, scouted out a few items that I thought may sell and had a decent discount, took pictures of the items and their prices, then went on eBay to see if my hunch on these items was correct.
To dip my toe in this strategy, I purchased about $150 in sports apparel and I will try to see if I was correct on these items and I can mark them up successfully.
My next challenge is whether to post these paying for shipping or asking the buyer to pay and if so, how much? I held off on a number of items because I noticed there were mark ups on eBay but offered with free shipping. I figured I couldn’t be competitive with that so I am staying away from those for now until I start to get a better feel for the market and how the process works. Either way, I will keep my readers updated on my progress and whether I am successful. For the few hours I put in today, I would be happy to net $30.
Source: eBay
I have also signed up for Facebook Marketplace but have not had the time to tinker with that as much yet. eBay was easy to sign up for and begin to sell right away. Amazon seemed to require too much approval and red tape so I have left that out for the moment, although I may return to it. The irony of all this is that I am a little embarrassed to say, I have never even purchased anything off of eBay before. Amazon I have but I have yet to buy something on eBay in all my years on this earth, looking to be a seller though I am also seeing the possibilities as a buyer for cheaper goods so that streak may not last for long.
Testimonials of the Like Minded
So besides the obvious immediate need of having 2 apartments I need to pay for (due to my domestic situation, one is to be closer to my son), what gave me the courage to start these new ventures? I can say it was the connectivity that the internet allows for.
When I was unemployed and was getting my taxi license, some people around me scoffed at me getting the license as if this type of work was beneath me. However, I am well aware that growing rich over time requires a two pronged approach: budgeting your money so you can save some and investing it. If you can increase your income in order to invest more every month who cares how you got it?
I think the limiting mindset of some people restricts them in many ways. Focusing too much on the budgeting, and you may ignore the potential for getting more income. Some people get extra income, focus on budgeting, but don’t invest. These people don’t have their money working for them over time so they have to continually work hard and find themselves still on the hamster wheel as inflation eats away their savings.
Through YouTube videos like those from Gary Vee, anonymous message boards and Instagram though, I have found that I am not the strange character that some people make me out to be. There is a whole community of people, formally educated or not, that are committed to a simple lifestyle, making money, saving money and investing over the long term.
Take for example when I did some research on whether I should really ride around on a bike for Uber Eats. I came across a message board where a guy mentioned he was a corporate attorney by day but after work he would ride around and deliver for Postmates and Uber Eats. The money wasn’t great but he managed to pull down an extra $200 per month and he got a lot of exercise.
The other thing he noted is that the way many people treated him completely changed when he went from corporate lawyer to delivery boy. He mentioned the disdain and the stuffing him on tips that many people did because he felt they looked at delivering as desperate low skilled work. It’s sad to see how much our desire to differentiate ourselves through an invisible social hierarchy makes us treat other people like trash.
It sounds like the lawyer is much like me though, I will pick up garbage for money if I have to. That can do spirit with no shame has always been in me, my current situation just reawakened it.
The Power of Compounding
I can’t stress enough that any effort you can make to produce income on the side in addition to saving money is worth it. The reason is if you were to just keep that side hustle and invest say, $300 or $400 a month year after year in the market, the compounding would take over and turn those small bits of money into a lot of money.
Take a look at what $400 a month invested in the stock market based on average historical returns of about 8% would look like:
- $400 a month for 5 years – $29,177
- $400 a month for 10 years – $72,049
- $400 a month for 15 years – $135,042
- $400 a month for 20 years – $227,599
- $400 a month for 25 years – $363,594
See how that works? Now in all fairness the future values have not been discounted to today’s value. If we assume the Fed’s target of 2% inflation, that 20 year figure would be $153,172 in today’s dollars for example.
Still, the point is clear, habits that include saving and investing over long periods of time can make anyone who knows how to master them rich. It requires discipline, habit, focus, risk taking and a long term view. When you combine the willingness to do small tasks even for some extra cash, with the power of compound interest over time, you can achieve amazing results.
Conclusion
I can’t stress this enough, the tools for earning and wealth are more plentiful than they have likely ever been in human history. Take advantage of the opportunity around all of us rather than turning your nose up at work or small amounts of money. Not only if you invest those small sums, will it help you gain even more income over time, but it may even help other aspects of your life. For example, the side effect of getting in shape or empathizing a little more with those that have thankless menial jobs. The small sums will get you to appreciate what you do for a day job and what you already have, the empathy may just get you to be a better person and less of an asshole.
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