Side Hustlin'

Choose Wisely – Side Hustle Edition

March 26, 2020 by tanya

When the status quo gets interrupted, one is forced to pay attention and make an assessment. I’m referring to a true, honest assessment. No delusion. No excuses. No fiending ignorant. Right now, one can either act like a deer in headlights, or recognize what’s happening and take action.

We’re in the midst of a pandemic. The novel coronavirus, COVID-19, has upended life in the United States and other parts of the world. Local governments are minimally operative, restaurants and many other businesses are closed (with restaurants being allowed to provide food via take out and delivery). Individuals are being asked (or in some cases, being mandated) to stay at home. Many hospitality and retail workers have lost their jobs. Others are working from home. When outdoors, many of us are practicing social distancing by staying at least 6 feet away from other people. If you’re living in the United States, you know that life is very different right now. People’s lives are at stake. So are people’s livelihoods.

The economy is in shambles. In addition to worrying about staying healthy, many of us are concerned about how we will continue to earn income and be able to provide for ourselves and our families.

We hear about multiple streams of income. At this point, we’ve heard it enough to know and believe that it is absolutely the way to go to not only increase income, but to hedge against risk. If one source of income disappears or becomes unstable, the other sources of income can take up some of the slack. We get that. It makes perfect sense.

To rely on one source of income is silly.
~ single girl

That’s why we have such a strong side hustle zeitgeist these days. In addition to someone’s day job, they also drive Uber (and Lyft). In addition to working as an employee for one company, people freelance on the evenings and weekends as a contractor.

I, too, totally understand and believe that multiple streams of income are necessary – absolutely necessary. To rely on one source of income is silly. So, like many, I have other hustles. In addition to having licenses to practice law in 2 states, I also have a real estate sales license, and 2 securities sales licenses (see my post https://singlegirlslaysdebt.com/a-14000-windfall/ about a $14,000 commission I made last year). I’ve also done some teaching.

My rationale in choosing these additional income sources was that they could provide me with higher paychecks. With real estate and securities sales, agents (in the case of real estate) and representatives (in the case of securities) get paid commissions. So, what you make is based on a percentage of the deal. If the deal is a small one, the commission will be small. If the deal is a big one, though, the commission will be much larger. Since the amount of work necessary on each deal isn’t always commensurate with the price on the deal, the idea of getting a commission seemed like a really good idea to me. But it wasn’t such a good idea – not when I want my hard work to be smart work.

When I got into my side hustles, I thought they made perfect sense. They relate to what I already do, so I thought I’d be in a good position to utilize the knowledge, network and background I already have. It was a good natural next step. From a short-term perspective, I guess it makes sense. At least, I thought it did.

Here’s where I made a misstep: I chose side hustles that don’t properly leverage my time, even though they’re “professional”. The problem is that my side hustles involve the provision of professional services – and I am the provider of the services. I didn’t use my knowledge and background to create products that could be sold time and time again and that could produce money even when I’m not actively working. Instead of taking the time to create at least one income stream that isn’t directly related to my time, all of my side hustles are based on my individual effort. Not the best idea.

I’m still trading my personal effort for money. He regrets it. I don’t want to be his age and be regretful too.
~ single girl

I recently spoke to a man who has been in the securities industry for over 30 years. I asked him what he would have done differently, knowing what he knows now. He said that he would have built a business that wasn’t so dependent on him – something that could be deemed an asset that could be sold. With the choices I made for side hustles, I am on the same track as this guy. I’m still trading my personal effort for money. He regrets it. I don’t want to be his age and be regretful too.

The good thing is that, with additional licenses and services I provide, there can be more checks and the checks can be bigger. The bad thing is that, if I’m not working, there are no checks. I’ve positioned myself to be able to make more money, but that position is one that ties me to trading hours for dollars. And all of my dollars are tied to me doing the work. None of my side hustles can function in my absence. I haven’t set up streams of income that don’t rely on my continued, individual effort. In the same way that a stock portfolio should not be limited to just one stock or one industry, my income streams shouldn’t all depend only on my individual efforts. This model that I’ve set up is stupid. Really stupid.

So Not Sexy Side Hustle

November 13, 2019 by tanya

A few months ago, an older gentleman who is a fellow real estate agent at my broker’s office asked me if he could connect me with his son whom he needed “to get married off.” He asked me for my card. I gave it to him. I thought nothing else of it.

Audio version of this post, read by the author.

Later that week, I received a call from “the son.” He asked me if I knew who he was. I didn’t. I just knew him as the son of the real estate agent guy. As it turns out, the son was a man who had tried to get me to go out with him before. Somehow, we were Facebook friends and had communicated via Facebook Messenger periodically over the years. Whenever he asked me out, I was either in a relationship or just wasn’t interested. This time, influenced by my colleague’s relationship to the man, I finally agreed to go out with him.

We had lunch at a hip little Mexican place in a popular development in Midtown. I really pay attention to people and I’m a great listener. By the end of the date, I knew a whole lot more about this guy than he did about me. I let him ramble on and on (he was the most ramblin’ ass dude I’ve been out with in a while), made appropriate comments, and asked sensible questions. He told me about himself, his kids, his job and even about his father (like the fact that his father had murdered someone, served time in prison and was later pardoned).

I’m not suggesting that people be dishonest when first meeting a potential romantic partner; I’m suggesting that folks not lead with their shit.
~ Single Girl

In conversations that we had during the date and afterwards, he mentioned more than once his challenges with not making much money. He’s a professor at a local university and, apparently, it isn’t particularly lucrative. In a post-date conversation – one in which I eventually told him that I didn’t think we were a good fit – he reiterated that he doesn’t make much money. It got to the point where I said to him, “You’ve mentioned a few times that money is a challenge. Are you in the position to be dating right now?” His response was . . . interesting.

“Well, you know,” he said, “I do things on the side . . . I donate plasma ‘n’ stuff.”

[Record scratch.]

Plasma?! I’ve never had someone say out of their mouth to me that plasma donation was their side hustle. On the one hand, I was curious about how much it pays. On the other hand, I used his statement as confirmation of his deficient ass dating skills. He didn’t even realize that he shouldn’t have mentioned the plasma-donating proclivity to a girl he just met.

The reason he shouldn’t have mentioned his proneness to plasma is for the same reason that no one should remark upon their various issues too early on in a dating situation. Of course, we all have issues. Every grown up knows that. It is rarely a good dating approach, however, to put all of one’s issues on the table right away. We should parse out those not so sexy parts of us; there’s no need to overwhelm someone with them prematurely. I’m not suggesting that people be dishonest when first meeting a potential romantic partner; I’m suggesting that folks not lead with their shit.

In our one date and subsequent conversations, this guy had already demonstrated other qualities that I didn’t like. He spoke incessantly (that’s how we left the date with him having learned almost nothing about me and me learning a lot about him) and he asked questions that demonstrated an unusual need for reassurance. He also rudely interrupted (and he admitted that this is a bad habit of his) the relatively few sentences I spoke in conversation with him. So his mention of the plasma donation side hustle just added to the list of reasons that I didn’t think very highly of him. It’s not the fact that he donates plasma. It’s that it’s not a sexy side hustle and he brought it up before I got a chance to learn about the good things about him – the things that I might actually like. When you meet someone and get the chance to experience the qualities that you appreciate, when you later learn things about them that aren’t as attractive, those unattractive qualities can be balanced or tempered against all that you’ve learned to like about the person.

Let’s not act like some side hustles aren’t sexier than others. Here’s some quick comparisons to consider:

“I trade ForEx on the side.” vs. “I deliver for Jersey Mike’s.”

“I prepare tax returns.” vs. “I have a GoFundMe page.”

“I do math tutoring via Zoom.” vs. “I recharge electric scooters.”

“I do personal chef services for busy families in my neighborhood.” vs. “I’m a stripper.’” (It would seem that the stripper one would be sexy but, interestingly, many of us don’t mind watching strippers, but would prefer to not date one.)

“I manage social media for small businesses.” vs. “I donate plasma.”

It seems that it’s usually the side hustles that require skills or have the potential to produce higher-than-average income that have greater appeal. But that’s an aside.

I’m sure there are a bunch of guys around here donating sperm, blood and plasma for money. Women, likewise, are offering their bodily fluids, eggs and whole uteruses for dollars. And let’s not act like people aren’t out here, literally, selling sex. To be clear: I’m not knocking anybody’s hustle. I’m merely suggesting that – for someone who is dating – a little bit of discretion be exercised in communicating about those not so sexy side hustles.

When you’ve gotten to know your significant other, it’s not a big deal if they pass gas or burp in your presence. If they did that on the first or second date, however, you wouldn’t think it was cool. You’d think it was rude and you’d be unimpressed that they didn’t exercise more courtesy with you.

Paying an electric bill for your girlfriend is a non-issue when you’ve developed a relationship with her. Were she to ask you to pay one of her bills on a first, second or third date you’d be thoroughly turned off. (If you’re saying to yourself, “Where they do that at?” let me assure you that I’ve heard several men in this city complain of the forwardness of women with whom they’ve gone on dates. As odd a request that is to me, apparently, it’s not that unusual.)

Having the person you like tell you that they have herpes would likely be more palatable after you’ve had a few dates versus learning about that at the beginning, before you’ve even had the chance to see if you’re into them.

In each scenario, we’re dealing with the same action, just executed at a different time. And timing does matter.

I’m not making a commentary on bodily functions, venereal diseases or bills needed to be paid. I’m strictly talking about what is sexy and what is not. While sexiness is, obviously, is in the eye of the beholder, I think it is fair to say that some shit is universally not sexy.

I don’t care what anyone says; there’s nothing sexy about a man talking about how he’s so broke that he needs to (not used to, but continues to) donate plasma – as a middle aged man. There’s nothing sexy about any one – man or woman – being broke as an adult. Period. But many of us are broke and in debt – including me – and I have enough dating IQ to know not to lead with my six figures of student loan debt and the back taxes that I owe. There’s more to me than my debt. And, this debt is temporary. I have other amazing qualities that I can present first.

Does this mean that I’d hide it or flat out lie if asked directly about it? No, I wouldn’t. I’m just going to first focus on learning about the other person and letting them get to know about me. Do we even like being around each other? Do we have high-quality conversations? Do we appreciate each other’s energy? Do we have any chemistry? If these factors don’t exist, we won’t even need to bother getting to the point of learning about the negative stuff.

The bottom line is that if the hustle is an honest one, there should be no stigma or judgment attached to it. Intellectually, I don’t think there should ever be shame in the making a bona fide living. But, there’s a difference between what should be and what actually is. And the reality is that I have the right to not be turned on by how you make your money and someone could opt to feel the same about me.

Fundamentally, what matters most to me when evaluating a potential mate (from a financial perspective) are his philosophies on money, his work ethic and what his overall vision for his life is. Yet . . . let me be real. . . will I, at this age, seriously date a broke man? It’s unlikely. Broke doesn’t turn me on. Chris Rock said it the best in Kill The Messenger:

. . . When it comes to women and money . . . nothing dries up a pussy quicker than a woman reaching for her wallet. There is something about a woman reaching for her wallet that just dries up the vagina. It’s almost like the wallet is sending a signal to the pussy that this man is not worthy of getting wet for.
~ Chris Rock, Kill the Messenger

Mr. Plasma was both basic and broke. He didn’t have a chance.

A $14,000 Windfall!

October 13, 2019 by tanya

YYYYYAAAAAAYYYYYY!

One of my side hustles is real estate sales. I first got my license years ago just after I took the bar exam. Since I was already in test mode, I figured that I should go ahead and get it done. After the beast known as the bar exam, the real estate licensing course and exam wouldn’t be too big of a deal. I had recently began my career as a real estate attorney, and I thought it made sense to get the license. My former boss at a previous firm (a firm where I was a paralegal), an attorney who had been practicing for decades, once told me that he had often felt like he should get a sales license because he saw many deals in which commission dollars were being “left on the table.” So, I went ahead and got the license.

Audio version of this blog post, ready by the author.

Right after I got my license, I purchased my condo. As a licensed agent, I was able to collect the commission on the buyer side of my own deal. In the end, I ended up walking away from my closing with a few thousand dollars in my pocket.

Then, I proceeded to do nothing with the license for years. Since I wasn’t doing anything with it, I figured it best to let it lapse. That was until around this time last year.

As I began to come to terms with the gravity of my financial situation, I thought that getting the license again would be a really good idea. This time, however, I would use it. I needed a way to supplement my law firm income. And I needed a way that could, potentially, produce some windfalls – big chunks of money at one time.

Speaking of big chunks of money . . . I just got my first commission on a sale listing!
~ Single Girl

Speaking of big chunks of money . . . I just got my first commission on a sale listing!

I sold a strip shopping center on behalf of a client. Here’s the breakdown of the money.

Sales Price: $1,700,000
Commission Rate: 2.5%
Commission Split with Broker: 70% (me)/30% (them)
Other Fee to Broker: 6%
Commission Split with Other Agent: 50%.

A couple of things to note:

(1) Commission Rate: In a commercial transaction, the commission rate is usually higher than that in a residential real estate transaction. In a residential transaction, the rate is around 3% per side. The commercial rate usually ranges between 3.5% to 5% per side. I made the mistake of agreeing to cut the commission on account of the size of the deal and the fact that the seller wasn’t going to make much on the transaction. The seller was in a bad financial situation with their business and were desperate to sell quickly. Lesson learned. I will not cut my commission in the future. This was also an unusual deal because the buyer agreed to pay their own agent’s commission. Typically, the seller pays the commission for both sides of the deal.

(2) Commission Split With Other Agent: At the time I received the listing, I was overwhelmed with business travel and a couple of speaking engagements. The client was very high maintenance and, as I mentioned, desperate to sell quickly. In order to get the property listed swiftly, I needed help from another agent who could take action promptly and handle the initial research and other work that needs to be done upfront to get a commercial property listed.

Here’s the breakdown of the money in dollars:

You never know whether a deal will actually close. When it comes to income, it isn’t . . . until it is. In other words, I try not to count the money until the wires have been sent or the checks have cleared the bank. That said, I didn’t include these funds in my October budget. I’m handling these funds completely separately.

My business and life coach suggested that I allocate the funds according to percentages and to do it prior to actually having the money in hand – at a time when there’s no itch to spend the money because I see it in the account. I thought through the various parts of my life that need to be handled, then allocated a certain percentage of the funds to the different categories. This will allow me to address certain parts of my life that need attention, but will still allow me to tackle my highest priority – my debt. By using some of the money for sinking funds, I’ll be able to stop allocating money on a monthly basis for such purposes. For example, for clothing and car repairs I’ve been allocating $50 to each category every month in my budget. By funding these accounts with lump sums, I can refrain from funding those accounts over the next few months and focus on my debt snowball.

Overall, by handling the money this way, I feel like I am covering a lot of ground. From an emotional perspective, I see that I am making headway by paying off some debts, but am also managing my needs in a responsible way.

The one thing I know for sure is that I want to pay off the taxes that I owe for 2018. After that, I like the idea of using the percentage allocation model.

Here’s how the money will be spent:

Amount available after high-priority items are paid.

55% ($3,569) – other debt, in addition to the 2018 taxes
10% ($649) – Health (e.g., eye exam, contact lenses; maybe eyeglasses)
10% ($649) – Personal care and clothing sinking fund
10% ($649) – Home repairs
10% ($649) – Miscellaneous
5% ($324) – Car care sinking fund

I didn’t set aside any of these funds for the payment of taxes – not because I didn’t learn the lesson from my recent tax debacle (see The Tsunami Situation – Tax Edition). When I checked the amount of taxes I’ve paid this year through payroll I found that I’ve already paid close to what I owed for last year’s taxes, even though my adjusted gross income this year may be a little lower than last year’s income. I’ve been making additional tax payments through payroll (i.e., an extra $150 per payroll check).

The reason I didn’t allocate more funds for home repairs for the special assessment that I’m expecting from my HOA (see Homeownership: A Speed Bump on My Debt Free Journey) is because I was told by the HOA treasurer that this likely won’t happen until 2020. I’m thinking that I can cash flow it, once the HOA details the payment structure for the assessment.

I’m grateful that this deal closed and that I’m in the position to pay off some things and fund some accounts. I’m also hopeful for additional side hustle income. I’m really going to need it!