Archive for the 'Money' Category
November 7 2008: Diversifying Your Income
Filed under Money & Uni/Work with 4 Comments
One key thing I probably should have added to my previous post about preparing and handling unemployment, is the importance of diversifying one’s income, instead of relying on a single income. In other words, instead of simply relying on your full-time (or, part-time) position as your only income, learn to use your spare time productively to achieve another way of earning money. That way, when/if you lose your job, you still have secondary means of earning money which while perhaps not as much as you’re used to, will still tide you over until you find a more permanent position.
Using myself as an example, I earnt money in three different ways in the last year, while still being a full-time university student pulling in Distinctions and High Distinctions:
- My part-time retail job: My main source of income ($15,000AUD a year).
- My babysitting jobs: Not as much as my main source of income, but more than enough to live on if I were to lose my job ($10,000AUD a year).
- Interest from my bank accounts: What I like to think of as ‘free’ money as I don’t have to actively do anything to earn it ($1000AUD a year).
Now that I’m uncertain about how much longer I can continue to hold my retail position with the economy the way it is, I’m further diversifying my income by selling on eBay. If early signs are any indication, this venture could possibly net me a further $4000AUD-$5000AUD a year, while requiring me to spend less than three hours a week in activities relating to it.
I realise that most people don’t have the luxury of having a flexible timetable as I (sort of) do. They may be locked into a regular 9-to-5 office job with only weekends to commit to any other venture. That’s fine. Weekends are more than enough to ensure you have a backup plan.
I’m going to use Vixx of Furious Angel as an example. She holds down a full-time job. She also has a husband and child to spend time with. Yet she’s able to earn additional freelancing income by creating site designs in her spare time, as well as drafting out her first novel. Going by the prices quoted at Geek Goddess (her portfolio), she’s earning at least 100 pounds (a couple of hundred American) for every design she does. It’s not exactly small change.
I think the important thing about any part-time venture you consider, is that it has to be a passion. For most people, their full-time work is simply something to earn money through, not necessarily something that brings them great enjoyment. Change that, and make your passion financially viable as you’ll grow to hate spending your spare time on it if you don’t love it. I’m earning money by shopping and selling on eBay. Vixx is making money by designing site layouts. If you love animals, try dogwalking (I see dogwalkers in fancy neighborhoods, with as many as ten dogs on leashes at the one time!). If you love children, try babysitting. If you love clothes and shopping, take up a weekend-only retail position. If you love designing, create an online portfolio and solicit local businesses for their patronage. If you’re anal about grammar and punctuation, try freelance copywriting. If you blog lots of reviews of books or movies, sign up for Amazon affiliate links, and earn a few Amazon dollars (I have to admit, this is something I’m contemplating).
There’s a million and one things you can do as a freelancer in your spare time. Guru is a good place to start, but I’m sure there’s a million and one country-specific websites like it that can help you earn a few extra dollars!
November 3 2008: Buying Items For My Ebay Store
Filed under Money & Online with 10 Comments
I’ve been asked about the kind of items I’ve been selling on eBay, and where I get them. Some of them are items of my own, that I’ve either outgrown, or which need to be culled from my wardrobe before it explodes with the masses of clothes stuffed into it. However, the majority of my items are items purchased at op shops (second hand stores), some still with tags attached, some clearly pre-owned.
There are a few rules that I make myself follow:
- All items purchased had to be a recognisable Australian or international brand of good quality (e.g. something that I would wear myself, not something cheap from Target or a cheap street store). Any items not of a recognised brand had to appeal to a niche market (e.g. leather miniskirt for goths, maternity clothing for pregnant women, costumes for upcoming Halloween parties, etc.).
- All items had to be in new (or close to) condition. No pilling, no pulls, no holes, no missing beads, etc. Only items with original store tags still attached could have small faults (e.g. small rip in the hem), but these faults most be fixable with needle and thread.
- Pre-worn items could not exceed $2AUD in price. Items with original store tags still attached could not exceed $5AUD in price.
These obviously aren’t iron-clad rules (I have made exceptions), but they’re a good guide to keep in the back of mind when I’m shopping for items. It helps me limit expenditure and maximise profits, as I’m always aware that I could buy something at $20AUD on sale with the intention of selling it on eBay, but end up making a loss. Making $5AUD each on ten $1AUD items, is preferable to the option of making $100AUD on a single $20AUD item. There’s less risk and initial outlay involved, and as this venture is still very much in the developing stages, less risk is something that I’m acutely conscious of.
November 2 2008: eBay Experiment: The First Week
Filed under Money & Online with 7 Comments
The first batch of items I put up on eBay for auction have just ended. My total gross profit is just under $350AUD, and after subtracting my expenditures (item costs, seller fees, etc.) my net profit is just under $100AUD.
Not bad for three hours worth of ‘work’ in taking photos of the items and listing them up (with distractions like MSN, blogs, email, etc, so it’s more like one hours worth of work). It’s certainly more than the $19.11AUD an hour I earn working in the shop, and the $20AUD an hour I earn babysitting. At this early stage, it seems as though there’s definite potential in turning this into a money-making side venture, though I’m obviously not going to give up my job anytime soon to pursue this full-time.
At this point, I think my eBay earnings will be enough to cover my petrol costs each week, as well as a dinner out with friends every now and again. Can’t complain about that.