Can you really turn a side hustle into $1,000,000 — or more?!
Mark Tilbury did. He’s a self-made millionaire and business owner, and even though he didn’t grow up with a lot of money, he took every opportunity to fight for the life he wanted.
I sat down with Mark for an episode of the Erika Taught Me podcast, to learn from his life story and hear his advice. He explained how his preparation paved the way for him to take advantage of luck, and how he learned from his mistakes.
Start Your Side Hustles on the Side
It’s not usually the smartest idea to quit your job cold turkey to pursue your passion project. You’re losing out on the safety of a steady paycheck. Plus, you may lose benefits like insurance.
Mark’s advice? Start up those side hustles while you still have a job. That job offers security so you can learn the ins and outs of owning and operating your own business while still bringing in reliable income.
For example, Mark used to work at a model plane shop. His customers noticed his expertise (he flew model helicopters growing up) and asked him to teach them about RC helicopter flying. So, he began to take them on as private students in addition to working at the shop.
Mark also flipped old cars, buying them for cheap at the used car lot and fixing them up.
The common denominator? He enjoyed doing it all! He figured out ways to make money off the things he already liked doing: tinkering with cars and flying model helicopters.
READ MORE: Side Hustles from Home You’ll Actually Want to Do
Plan for Passive Income
Mark eventually realized something with his side hustles: He had sold all the hours in his day. He had capped out and had no more time left to sell.
I realized the same thing one day as a lawyer: I had run out of hours I could work to trade for money.
And that’s when we both started to think about passive income.
Passive income allows you to trade some time and money upfront for long-term income down the road. For example, creating a course that you can sell again and again, or even buying a home and renting it out.
Real estate locks you into a mortgage, which Mark says can act like a noose around your neck. It can be a really bad investment if you’re not prepared for the responsibility of house payments.
The cost of upkeep, the buying and selling process, and other expenses will cost you if you don’t plan on staying for longer than about seven years.
Instead, you could buy a house with the intention to rent it out. The folks paying you rent will actually be paying off your mortgage. (Look into your local laws before you plan on becoming a landlord, though!)
Our culture tends to be very impatient, but passive income projects require patience. There’s this perception that side hustles will start to bring in money instantaneously, but Mark reminds us to bide our time.
READ MORE: Passive Income Ideas
Invest in Yourself and Your Future
Mark says the best investment is to educate yourself. Once you’ve earned a bit of income from your side hustle or passive income, pay for a course that expands your abilities and marketability even further. You are your best return!
Uniqueness is a superpower on a resume, so stack your skills, acquire new knowledge, and make yourself stand out and be interesting.
Next, make sure your emergency fund is solid. The last thing you want to do is cut into funds you’ve already set aside for other things, like a down payment on a house, when an emergency comes up.
And the best way to save for that fund? Put it in a high-yield savings account rather than in investments. This way, your emergency fund is “on tap” for when you need it.
Finally, as your income grows even further, don’t get in the habit of throwing money at expensive things just because you can finally afford the payments. Instead, store it in a Roth IRA.
If you can, set up your paycheck(s) so 10% goes directly into your IRA. If you can afford to save anyway, you’ll barely notice that 10%.
READ MORE: There’s Never a “Good” Time To Invest — Why You Should Do It Now
Be a Do-er, Not a Dreamer
Some young people feel intimidated at the prospect of being in charge for the rest of their lives.
But Mark encourages you to “build an empire” while you’re young, and work hard while you have the energy.
He describes three types of people: the drifters, the dreamers, and the do-ers. The only thing separating the do-ers from the dreamers is their decision to educate themselves to reach their dreams.
- Drifters: They live paycheck to paycheck, will get ahead then get behind, will stumble over issues and roadblocks, and are just drifting through life with no plan. If it suits you, fine.
- Dreamers: They know what they would like, what job they want to get, and what they want to have and earn. But they lack the knowledge of how to get there. And their risk tolerance is too low. This is 80% of people.
- Doers: Doers are dreamers who take it one step further. They educate themselves on how to get where they want to go, they’re prepared to learn lessons, and they better themselves along the way.
Take Risks
The worst thing you can do in your 20s and 30s is not take any risks. In fact, Mark argues that you take on risk by not taking any risks.
What he means is to take advantage of the opportunities that come your way. Typically if you take a risk, you’ll at least break even. You probably won’t lose a ton, but you stand a chance of gaining a lot.
In general, it becomes easier to take calculated risks the more often you practice doing it. For me, if I hadn’t quit my job as a corporate lawyer to start my business, I might’ve had kids before long and then there was no way I’d leave my job as a lawyer to chase my passion.
Once you start taking calculated risks, you’ll get better and better at it until it becomes predictable. Preparation is key, and failure isn’t ever truly a dead-end — if you learn from your mistakes, then the risk was worth it.
TL;DR: Side Hustle Life Lessons
There’s a quote from Einstein saying, “Once you stop learning, you start dying.” Mark agrees.
Education, especially educating yourself, doesn’t stop at a certain age. You will always keep progressing if you choose to keep learning.
Mark taught me some very important life lessons that don’t just apply to side hustling, but to everything in life: Take some risks. Learn new things. Look toward your future.
You have more time on your hands than you think. So get out there and better your life!
Listen to the full interview with Mark Tilbury or check out these other episodes of the Erika Taught Me podcast:
- Meet the School Teacher Now Making $20,000,000
- Do THIS To Become a Millionaire
- How to Make Your First $100,000
Learn With Erika
- Free Travel Secrets Workshop
- Learn how to use the fine print to book your next vacation practically for free with Erika's step-by-step system
- Free 5 Day Investing Challenge
- Learn how to get started as a beginner investor and make your first $10,000
- Free 5 Day Savings Challenge
- Discover how you can save $1,000 without penny pinching or making major life sacrifices
- Join Erika Kullberg Insiders
- Ask investing questions, share successes and participate in monthly challenges and expert workshops
. . .
