Time Is On Your Side
Episode 139R
Episode Guide
Episode Summary:
Episode Timestamps
ChooseFI Podcast Episode Show Notes
Episode Title: Exploring Grit, Freelancing, and Financial Independence
Hosts: Jonathan Mendonsa, Brad Barrett
Guest: Sonny Burns
Episode Summary:
The episode explores the concepts of grit, freelance work, and the gig economy, emphasizing how to reclaim time and optimize one's schedule. Brad shares a personal story about a challenging experience at the DMV, illustrating the importance of strategic planning to avoid long wait times. The conversation transitions to Sonny Burns, who achieved 88.92% financial independence through car flipping and identifying market inefficiencies. His entrepreneurial spirit is highlighted as he discusses various side hustles, including flipping cars and selling pacifiers on Amazon. The episode culminates with a discussion on how small business ideas can significantly impact financial independence, encouraging listeners to find and leverage opportunities around them.
Key Topics Discussed:
Podcast Intro:
- Introduction to the concept of financial independence.
DMV Experience and Tips
- Brad shares his experience at the DMV, urging listeners to plan visits strategically.
- Key Insight: Avoid peak times (weekends, holidays, lunchtime) to reclaim time.
Sonny Burns' Journey to Financial Independence
- Discussing Sonny Burns's journey and how he reached 88.92% financial independence.
- Key Insight: Identifying market inefficiencies can lead to profitable opportunities.
Exploring Side Hustle Opportunities
- Discussion on various side hustles, including car flipping and leveraging platforms like Amazon.
- Actionable Takeaway: Use Amazon FBA to scale your side business without logistical headaches.
Building a Successful Amazon FBA Business
- Sonny discusses his success with selling pacifiers on Amazon and the logistics involved.
- Key Insight: Finding consumer needs can lead to successful side hustles.
Takeaways and Community Feedback
- Discussion on the community's success stories and the encouragement it brings to others on the path to financial independence.
- Key Quote: “Don't let excuses hold you back from pursuing financial independence.”
Actionable Takeaways:
- Plan your DMV visits during less busy hours to save time.
- Identify and utilize market inefficiencies for potential side hustles.
- Use Amazon FBA to start your side hustle with minimal hassle.
- Thoroughly research tenants to ensure long-term rental success.
Speaker Highlights:
- Brad Barrett: Co-host and financial educator, sharing insights on personal finance and time management.
- Jonathan Mendonsa: Co-host focusing on financial independence and entrepreneurial strategies.
- Sonny Burns: Entrepreneur discussing his journey towards financial independence through various side hustles.
Quotes:
- "Avoid the DMV during peak times to reclaim your time effectively."
- "You can find inefficiencies in the market, you can always generate income."
- "Committing time and effort leads to financial independence."
Related Resources:
Discussion Questions:
- What strategies can you implement to avoid busy times at places like the DMV?
- How can you identify side hustles in your everyday life?
- What are the key factors to consider when managing rental properties?
Podcast Description:
ChooseFI brings you practical insights on achieving financial independence through real-life stories and actionable advice. Join hosts Jonathan Mendonsa and Brad Barrett as they explore the gig economy, entrepreneurship, and side hustles that can lead you to a more fulfilling financial future.
Unlocking Financial Independence Through Grit and Side Hustles
The journey toward financial independence is often filled with challenges and opportunities that require strategic thinking, hard work, and an entrepreneurial mindset. In this article, we will explore actionable strategies based on insightful discussions from the ChooseFI podcast episode featuring hosts Jonathan Mendonsa and Brad Barrett alongside guest Sonny Burns, who has remarkably achieved 88.92% financial independence primarily through car flipping and smart side hustles.
Managing Your Time Effectively
DMV Tips for Time Management
One of the key takeaways from the podcast is the importance of managing your time effectively, particularly when it comes to tasks that can be both tedious and time-consuming, such as visiting the DMV.
- Avoid Peak Times: Schedule your DMV visits midweek, ideally on Tuesday or Wednesday, to minimize wait times. Aim for times just before or after lunch to avoid crowds.
- Plan Your Visits: If you know your schedule is flexible, consider timing your errands around less busy hours for other tasks like grocery shopping or appointments to reclaim valuable time.
By effectively managing your time, you not only increase productivity but also pave the way to explore additional income-generating opportunities.
Exploring Side Hustles
Discovering Profitable Opportunities
Sonny Burns’ experiences stand as a testament to the entrepreneurial spirit and the potential of innovative side hustles. Sonny initially ventured into car flipping while in college, which set the stage for his financial independence. Here are practical ways you can explore similar side hustle opportunities:
- Identify Market Inefficiencies: Look for gaps in your local market. For instance, Sonny recognized undervalued cars and turned that insight into profits. You can similarly identify underpriced items in thrift shops or clearance sales and resell them online at a markup.
- Leverage Online Platforms: Utilize e-commerce platforms like Amazon FBA (Fulfillment by Amazon) to streamline selling products. This allows you to scale without the logistical headaches of shipping and customer service.
- Engage with Your Community: Start small by asking friends and family if they have items they want to sell or declutter. This can kick-start a side business while building a client base.
Start Your Amazon FBA Journey
Sonny’s success with Amazon highlights a viable side hustle avenue. Leveraging Amazon’s platform allows aspiring entrepreneurs to tap into a vast marketplace.
- Sell What You Love: Identify products or niches that interest you, just like how Sonny found a market for pacifiers. Research trending or high-demand products to get started.
- Utilize Resources: Explore the Amazon FBA program, which simplifies inventory management and leverages Amazon's shipping and customer service capabilities.
- Focus on Profit Margins: Find products that allow for meaningful profit margins. Sonny had profitability rooted in sourcing inexpensive pacifiers online and packaging them creatively.
The Mindset of an Entrepreneur
Cultivating Grit
Achieving financial independence often requires grit—the perseverance to keep pushing forward through challenges and setbacks.
- Stay Committed: Set realistic goals and commit to them. Sonny spent significant time researching and strategizing before launching his ventures. Your success will often depend on the groundwork you lay today.
- Overcome Excuses: Understand that everyone has challenges that could serve as excuses. The key is to not let these hurdles prevent you from taking action on your goals.
Effective Rental Management
The Importance of Tenant Screening
As Sonny explored real estate and house hacking, effective tenant management became crucial. Below are strategies to ensure successful tenant relationships and minimize headaches.
- Prioritize Tenant Quality: Be selective in your tenant choices. Establish a strict screening process focusing on income verification, credit history, and previous landlord references.
- Market Wisely: Use multiple platforms to find tenants, such as Craigslist and Facebook Marketplace. Consider holding an open house to efficiently assess multiple candidates at once.
Utilize Real Estate as a Path to Independence
Owning rental properties can significantly leverage your path to financial independence.
- Research Local Markets: Understand the real estate trends in your target area. With the right property, you can build equity while generating income through rentals.
- House Hacking Strategy: Live in a portion of your property while renting out other units. This not only helps cover your mortgage but also leads to significant savings.
Final Thoughts on Financial Independence
Take Action for Success
The key to achieving financial independence lies in your ability to take action. Apply the insights discussed in this article and in the ChooseFI podcast to transform your financial landscape.
- Plan and Execute: Whether it’s optimizing your time at the DMV, pursuing a side hustle like car flipping or Amazon FBA, or managing rental properties, the emphasis should always remain on action.
- Continuous Learning: Engage with financial independence communities to share experiences, learn new strategies, and motivate each other toward common goals.
By implementing these strategies, you can carve your path to financial independence, unlock new opportunities, and create a life that aligns with your values and aspirations. Take that first courageous step today!
Jonathan and Brad discuss saving time and the secondary good market as a potential side hustle opportunity.
[elementor-template id="143609"]Reclaim Your Time
Last week, Jonathan ended up at the DMV on a Friday afternoon with a crazy wait time. What should have been a quick trip turned into an ordeal worth avoiding.
After the painful trip, Jonathan did some research into when you should go to the DMV.
You should avoid the DMV around these times:
- Weekends
- Before or after a holiday
- At lunchtime
- Immediately after opening or right before closing
- The first and last week of the month.
A good time to go to the DMV would be:
- During the middle of the week
- An hour before or after the lunch rush
- The middle of the month
Although this is useful for the DMV, it likely applies to other businesses like the Post Office. If you have some breathing room in your life, then you can choose to reclaim the time you would have spent in line. Instead of being forced to take care of this on your lunch break, you might be able to visit at a less busy time.
Having some flexibility in your schedule gives you an ability to reclaim time that you otherwise would just lose as a matter of course. Right, so, for some people, going during their lunch hour might be the only option. But, if you have some flexibility, and certainly, if you're at FI or thereabouts, you have the option to spend your time as you see fit.
You can do this for many things. For example, celebrating Valentine's Day a day early or late can still be an enjoyable experience, just without the crowds. Or Disney World in the off-season. There's even the idea of switching up Mother's Day and Father's Day--go opposite of the crowd.
If you have flexibility in your life, where you can go anytime, why would you go when everyone else is going?
It is possible to optimize your life just by looking at things a little bit differently.
Side Hustle Through The Secondary Market
One of the things that stood out about Sunny's story was the idea of flipping cars for a profit. He searched for great deals and pounced on the opportunities as they arose. Sunny was able to fund some of his college expenses by taking action on this idea.
Years ago, Jonathan listened to a podcast about flipping cars. Although it was only ten episodes, it outlined everything you needed to know about flipping a car. If you are interested in learning more about car flipping, then check out Three Hour Car Flip.
But if you can have that sort of entrepreneurial spirit at a younger age, in your teens, early 20's; you can find inefficiencies in the market, you can always generate income.
Amazon FBA is a great way to have a side hustle for a secondary market.
Another great example of a successful flipper in the secondary market is Rachael Ray from Richmond, VA. She has identified clothing as a massive secondary market. She finds individuals that are interested in decluttering their closet and helps them sort through to find what has resale value and what doesn't. Rachael sells the clothes of value and keeps half of the profits.
The secondary market is an incredibly powerful vehicle for looking at those line-item budget standards a little bit different.
How Sunny Funded A Roth IRA For His Child
Sunny has funded a Roth IRA for his child from the time his son was six months old. At just four years old, his son already has $3,000 in his Roth IRA. That has the ability to grow at an 8% return for 60 years to reach a worth of $300,000!
It all started when Sunny was holding open houses for his rental properties. He was looking for stable families to fill their units, so they hired their son as a "baby model" for those open houses at the going rate of $100 an hour. Now, Sunny pays his three-year-old a quarter every time that his son rolls up 10 dollars worth of quarters from the laundry machines.
Both of these employment opportunities were completely legitimate wages for their young child.
Sunny makes sure to carefully document the hours his son works and shares it with his CPA. He pays his son as a 1099-MISC contractor through his LLC. Those records will be kept on file for many years in case a question comes up along the way.
Related: How To Open A Roth IRA For Kids
How Sunny Sold $30,000 Of Pacifiers On Amazon
After Sunny's first child was born, the hospital provided them with a single pacifier. Within a few weeks, the original pacifier was lost and Sunny was scouring the Internet for these particular pacifiers.
He found that it was extremely difficult to find this exact pacifier. Several forums were full of parents seeking these specific pacifiers. When Sunny stumbled on a 100 pack, he decided to buy the whole thing and sell the ones he didn't need on eBay.
However, he quickly got tired of running to the Post Office to mail them off. So, he found Amazon FBA and started selling through that program. Last year, they hit $50,000 in sales! On most days, they sell 10 of these pacifiers.
It was just a need that we felt. And we were like "Hey, let's do something about this. Let's fill this need." And you know, parents have thanked us for it since.
The time commitment of this side hustle is relatively low. He buys the pacifiers in packs of 1,000 at a time. Next, his mother-in-law created packs of two with an FBA label. She earns a quarter for every package she seals. Then they ship it off to Amazon for fulfillment.
The net profit of each two-pack they sell is $8. When Sunny hits FI, he might just start his own pacifier business.
When you create the space in your life, that you're no longer trying to figure out how to keep the lights on; this isn't about retirement, it's about having options!
Listen to the full episode with Sunny here.
Connect With Sunny
If you are interested in finding out more about Sunny, then connect with him through FamVestor. Or email at [email protected].
Feedback From The Community
Let's hear some of the questions in our community this week!
Email From Mike
Mike is new to FI. He wants to know if he should prioritize paying off his credit card debt or focus on investing in Vanguard. He recently transferred his credit card debt to a 0% introductory card but is worried about reigning in his spending.
Answer From Big ERN
Big ERN from Early Retirement Now called in to answer Mike's question.
Normally, he suggests that paying down credit cards with high interest take priority. However, the 0% introductory rate could leave room for a little bit of both, investing and debt pay off.
I like spreading out my equity investments over the longest possible time span and sequence of return risk is the reason. Because sometimes you are lucky and you contribute money right at the perfect time. And sometimes at the absolute worst time. And by spreading out your contributions, you average out some of that risk. It's essentially diversification.
However, Mike did not mention some of the details. For example, if he has $100,000 in credit card debt and is only paying down $1,000 a month, then the credit card debt is the biggest priority. If he has a manageable amount of debt that he can repay in the next five to six months, then investing alongside the debt payoff might be more appropriate.
Question From Rachael
Rachael has a new car loan at 3.4% interest. Recently she got a raise of approximately $500 a month. Her question is:
Do I push all of that to the principal of my car, shortening the loan time by about two and a half years and saving myself just over $1,000 total on the life of the loan? Or just chug along and put the extra towards investments?
Related: How To Get Out Of Debt
Answers
First, if you have an employer match make sure to take advantage of that before anything else.
You don't walk away from free money, especially on an interest rate that is so favorable.
Much of the answer depends on your mindset. If you can use the debt as a motivating factor to put your money towards long term goals, then paying it off could help you reach your goals faster. If you fully intend to put the money towards investments without fear of spending it all, then investing it is the way to go.
Related Articles
New to FI? Be sure to check out Episode 100: Welcome To The FI Community!