- After years of writing about financially independent people, I’ve discovered some commonalities.
- The first is that they have multiple sources of income, at least one of which comes from their own business.
- In 2025, I’m starting my own business to see if the wealth creation strategy works for me.
My job is to interview people who love money – self-made millionaires, pre-retirees and “super savers” who keep the majority of their income – and ask them to share their wealth-building strategies.
After talking for almost a decade with these money-hungry individuals and absorbing their knowledge, I have implemented much of what they advise: I automate my savings and investments, I live according to my means, track my expenses and net worth, and enjoy a health savings account.
I have a lot of basics when it comes to personal finance, but in the spirit of a new year and always trying to improve, I decided to think bigger for 2025 and tackle a particular strategy of wealth creation that I have written about but never dared to try: starting a business.
One of the observations obtained from talking to financially independent people is that they do not depend on a single source of income. They have at least two and, often, several sources of income. Even super savers tell me there’s a cap on how much you can save. But, they point out, the amount you can earn is unlimited.
Another commonality is that one of their sources of income is from their own business.
I’ve spoken to Amazon and Etsy sellers who have built e-commerce empires, content creators who generate passive income through courses and affiliate links, and a millennial who has gone from fell to seven figures by creating websites and flipping domains.
Starting an eCommerce Business
The business model that intrigued me the most – and which seemed feasible on a limited budget – was e-commerce. Essentially, selling a product on platforms such as Amazon.
I learned through interviews that there are three main ways to make money on Amazon.
There is arbitrage, which is the easiest and cheapest way to start selling on Amazon. This is when you source products from different markets to sell them. To be profitable, you must purchase the product at a lower price than what it sells on Amazon. After resale, you keep the difference.
The next level is wholesale. This is when you buy products in bulk and resell them on Amazon. As with arbitrage, you’re not making your own product – you’re just reselling an existing product – but you’re spending more money on inventory up front.
Finally, there is the private label route. Ecommerce experts told me that starting a private label is the longest and most expensive solution, but has the most benefits. This really requires creating a product and a brand.
I opted for the latter option and technically started the business in 2024 when a friend and I designed a pickleball paddle and ordered inventory from a manufacturer in Asia. My goal in 2025 is to sell all 500 paddles that are on their way from China to my apartment in Los Angeles, to create a brand that I’m proud of, to evaluate whether selling a product online is a suitable side hustle for me and my strengths, and write about each step of the process.
Prototypes of my product, the Peak Pro. Kathleen Elkins
I don’t expect create a side business 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 spoken to started with a side hustle — and, in some cases, just a side project or hobby that cost them money, let alone made any money. 5, worked for an employer to cover his bills, then booked 5-9 for construction companies.
Spending time and energy working on a side project that might not generate sales while simultaneously working a full-time job is not for the faint of heart. These self-taught entrepreneurs dedicate many hours to 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 having “a sleepless night once a week” in the early days of his startup.
Jatz Naran, an entrepreneur, said he built his Amazon Business between 6 a.m. and 10 a.m., after the end of the working day. “Forget work-life balance,” he told me, adding that ultimately, “you have to sacrifice one thing for another.”
The fascinating thing about starting a business is that you are in the driver’s seat. The success or failure of the business depends on you. How much you and the company earn is up to you.
I remember something real estate entrepreneur Dion McNeeley told me in an interview: think beyond your day job.
His sources of income 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, it that is, someone who is called to testify at a trial because of their specific knowledge. He has provided expert testimony in cases involving truck driving.
“I make a lot more money spending two hours a month on real estate and one to two hours a month providing expert testimony than I do running a truck driving school,” said McNeeley, who since retired from his day job. “The mistake many people make is selling their lives one hour at a time and not realizing that you make a lot more money when you get paid for the value you produce.”