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So far, you've learned a variety of different business models. In today’s lesson, I will go over a strategy that can be used in hand with every side hustle I’ve covered thus far. That being said, this topic is often deemed taboo in some societies and cultures. What is it you ask? Money.
If you are pursuing a side hustle simply because you love it and aren't worried about making a profit, good for you! Keep doing what you're doing. This is how my first online business started. Yes, I didn't mind making a dollar here and there, but I was really into it for the happiness that creating dance tutorials gave me. I didn't know about money back then; the media had made “rich” people out to be evil. All I wanted was a stable income that could pay the bills. Well, look at how that turned out.
Once I began to make money online, I quickly realized that money is actually a really amazing thing! It’s so empowering when you can deliver something of value to a customer while gaining financially.
Most of my courses online will teach you how to build a valuable, ethical, and moral business that produced income in a way that makes everyone happy. That being said, I don't have much content on what happens after you receive your income. This is a common trend among teachers like me. In fact, I’ve had students make $30,000 a month and fail to quit their main job. They claimed it felt too volatile or risky. Now, this wasn't because of what I had taught them. It was because of their poor financial decisions to splurge using their side hustle income instead of investing back into their business. Don't be like these students!
The point of this post is to give you permission to be as successful as you can. It’s okay if your side hustle grows! It’s okay to splurge every now and then. It’s okay to let your online business replace your 9 to 5 day job! All you need to know are my few simple wealth principles.
Principle #1: Intent
To kick off this lesson, let’s talk about one of the most important works in finance. It’s not saving or investing; it is the word intent! You see, where your money goes, your energy and life flows. If you continuously spend money on fast food, your body will naturally gain weight. If you invest in education, you will naturally get smarter. Having intent behind every single purchase will make life less stressful, I guarantee you. When you don't understand your relationship with money, things get chaotic.
How to Have Intent
First, you must be conscious. Being conscious means that you think about what is happening to your money.
Before packing up our lives and becoming minimalists, my wife and I’s relationship with money was not conscious. My wife has since admitted that, after a hard day at work, she used to reward herself with a little “retail therapy” at Target. She would proceed to buy anything she thought was cool at the time and walk out of the store with a $50 to $100 bill. This is a very American thing to do! Many use methods like retail therapy as an outlet and often spend their money without intent. However, this doesn't solve the issue. Physical items are almost never the solution to a problem that is leaving one unhappy or unsatisfied.
Everybody has the same goals in life: we all want healthy relationships, we all want to be fit, and we all want to be comfortable when it comes to money. I think we can all agree on this. If you want to have a better relationship, invest in your relationship! If you want to invest in your health, where you spend your money — or don't spend your money — will determine how fit you will be. To be wealthy, you must invest your money in a place where it will turn around and make a profit.
I’m not going to tell you to stop buying yourself coffee every morning or to cancel all of your date nights. I love coffee and I love date nights! I‘m happy to spend money on these things because they truly fulfill me and make me happy. Here are some questions to consider each time you make a purchase…
- Does this item give me purpose?
- Do I need this?
- Does this nourish me?
Fresh out of college, I made $27,000 a year. I also coached dance on the side which brought in about $3,000 that year. My bank account had started at $0 and by the end of the year, I had saved 18% of my $30,000 yearly income. If I was able to save that much working a slightly better than minimum wage job, I know you too can adopt these saving habits.
Principle #2: Bootstrapping
Many people have asked me whether or not they should take out a business loan or ask to borrow money from their parents. My response to these people is always the same — hell no! Do not take the money! Do not get a business loan! Now, I’m not always right and I have my own perspectives. You may find other advisors that tell you differently.
Every business I have ever run was made possible by bootstrapping. Bootstrapping is where you start with zero, make a sale, and reinvest the money you just made back into the business. Soon enough you will receive enough cash flow to where your business can sustain and grow while making a profit. This concept takes time but I promise it will save you in the long run.
Right now, you are probably just starting out and pretty inexperienced at your side hustle. Infusing $5,000 into something that you don't know how to do is a great way to blow through your money quickly, not to mention the relationships that will be damaged when you cant pay your investors back.
If you refer back to one of the first lessons in this course, you will remember that proving your idea is one of the first steps to creating an online business. To do this, you must test your ideas out. Yes, this is going to take some funds. That being said, this money should be your own and nobody else’s (and dear God, do not use a credit card!). You never want to blow a whole bunch of your investor’s money on testing an idea that has the possibility of bringing you no income. Racking up debt from a side hustle will only discourage you even further.
The bottom line is that before you spend any cash on your side hustle, you should feel confident that, even if your idea doesn't work, you will be able to pick yourself back up and owe nobody but yourself. I have launched hundreds of campaigns but my success rate is only 20%. That means 80% of the time, I lose money. That being said, all of these failures are very calculated and conservative. I’m okay with these failures because I am diversified and I only spend what I can afford.
In the final week of this course, we will be talking about running ads and investing money into your side hustle. Even if you've never made a dollar online, the fact that you are reading this post tells me that you are on the right path. So, are you on the right path? Comment below. I’d love to hear your story.
Peace and God bless.
For the complimentary worksheets and resources, go to adrianbrambila.com/30days.
I make new content every single week, so be sure to subscribe to my Youtube and follow my Instagram @brambilabong and TikTok at @AdrianBrambila. I also have tons of resources and courses on my website that you won’t want to miss. Head over to www.adrianbrambila.com to learn more about what I do and how I live a financially free life.