- After years of writing about financially independent individuals, I have found commonalities.
- One is that they have multiple streams of income – at least one of which is from their business.
- In 2025, I will start my own side business to see if the wealth building strategy works for me.
My work involves interviewing people who are good with money—self-made millionaires, early retirees, and “super savers” who keep most of their income—and asking them to share their strategies for wealth building.
After nearly a decade of talking to these money-savvy individuals and absorbing their insights, I’ve implemented much of what they advise: automate my savings and investments, live within my means, track my expenses and net worth, and benefit from a health savings account.
I’ve got a lot of the basics of personal finance down, but in the spirit of a new year and always trying to improve, I’ve decided to think more about 2025 and tackle a specific wealth-building strategy that I have written, but never dared to try: starting a business.
One observation from talking to financially independent individuals is that they do not rely on a single source of income. They have at least two and often multiple streams of income. Even super savers tell me there’s a limit to how much you can save. But how much you can earn, they point out, is limitless.
Another commonality is that one of their income streams comes from their business.
I spoke with Amazon and Etsy sellers who have built e-commerce empires, content creators who drive passive income from courses and affiliate links, and a millennial who went from reached seven figures building websites and converting domains.
Starting an e-commerce business
The business model that intrigued me the most – and seemed doable on a budget – was e-commerce. Basically, selling a product on platforms such as Amazon.
I learned through interviews that there are three main ways to do it earn money on amazon.
There is arbitrage, which is the most basic and low-cost way to start selling on Amazon. This is when you get products from different markets to sell. To be profitable, you need to buy the product for less than what it sells for on Amazon. After the resale, you keep the difference.
The next level is wholesale. This happens when you buy products in bulk and resell them on Amazon. Like arbitrage, you’re not making your own product—you’re just reselling an existing product—but you’re spending more money on inventory.
Finally, there’s the private label route. E-comm experts have explained to me that launching a private label brand is more costly and time consuming, but there are upsides. It actually requires creating a product and brand.
I went with the latter option and technically started the company in 2024 when a friend and I designed a pickle paddle and ordered the inventory from a manufacturer in Asia. My goal in 2025 is to sell 500 shovels that are on their way from China to my apartment in LA, build a brand I’m proud of, evaluate whether selling a product online is a suitable side hustle about me and my strengths, and write about each step of the process.
Prototypes of my product, Peak Pro. Kathleen Elkins
I don’t expect building a side business to be easy. And everything I’ve done so far has cost more and taken longer than expected.
Most of the financially independent entrepreneurs I’ve talked to started with a side hustle—and, in some cases, just a side project or hobby that cost them money, let alone brought in any. They put their heads down from the 9-to-5, worked for an employer to cover their bills, and then reserved the 5-to-9 for building businesses.
Carving out time and energy to work on a side project that may not generate sales while simultaneously working a full-time job is not for the faint of heart. These self-made entrepreneurs invested many hours for an unknown result.
NeuroGum co-founder Kent Yoshimura, who worked in a music studio and as a muralist while building a caffeinated gum and mint company, admitted to taking “one night off once a week” in the early days of his startup.
Jatz Naran, an entrepreneur, said he built his own Business on Amazon between 6 and 10, as his day’s work would be finished. “Forget work-life balance,” he told me, adding that at the end of the day, “you have to sacrifice one thing for another.”
What is intriguing about starting a business is that you are in the driver’s seat. The success or failure of the company depends on you. How much you and the company earn is up to you.
I’m reminded of something real estate entrepreneur Dion McNeeley told me during an interview: Think beyond your day job.
His income streams at the time included his day job, running a commercial truck driving school, long-term rental income from his portfolio of 16 properties, and a side hustle as an expert witness, which is someone who gets called to testify during a trial because of their specific knowledge. He has given expert testimony for cases related to truck driving.
“I make more money spending two hours a month in real estate and one to two hours a month giving expert testimony than I do running a truck driving school,” said McNeeley, who has since retired from his job. everyday. “The mistake many people make is that they sell their lives one hour at a time and don’t realize that you make a lot more money when you get paid for the value you produce.”
