This story is part of CNBC Make It In the Six-Figure Side Hustle series, people with lucrative side hustles break down the routines and habits they used to make money on top of their full-time jobs. Do you have something to talk about? Let us know!Please email us at AskMakeIt@cnbc.com.
Technically speaking, Sophie Riegel didn't spend a dime to start her side hustle.
She started with items she already owned, scouring her closet for used clothing she could sell online. After earning her $200 on her own second-hand clothes, she turned her attention to her favorite shopping place, a thrift store.
“I've been frugal all my life because I don't like to spend money,” says Riegel, 23. “I'd rather spend $5 than $100 on pants.”
Since April 2020, she's turned that habit into a lucrative side hustle. Riegel made about $123,800 last year by reselling items he bought from thrift stores on online marketplaces such as eBay, Mercari and Poshmark, according to documents reviewed by CNBC Make It.
She has made more than $192,000 in net income over the past four years because her expenses have been kept to a minimum. Riegel estimates she has spent just over $50,000 on second-hand clothing she sold. Other costs include shipping and gas costs for transporting items from thrift store to thrift store. Her 10% to her 20% of her sales are maintained in her marketplace online.
Much of her business growth came from her dorm room at Duke University, where she graduated last year with a degree in psychology. She is pursuing a full-time career as a professional writer, speaker, and life coach, and says she expects her side hustle to make up about 50% of her income this year.
“I started buying $5 to $10 items for $50 to $100,” Riegel says. “It seems to have worked out really well. When he was a sophomore, he probably had about 200 items in his dorm room, and now he has 1,300 items.” [in a storage unit]. ”
Here, Riegel shares the hard work she put into turning her love of thrifting into a six-figure annual business, and tips for others to follow in her footsteps.
CNBC Make It: You Already Are client coaching Start your own frugal side hustle. What are your best tips for people who want to replicate your success?
Riegel: The biggest thing is you have to enjoy it. If it's not fun, don't do it.
Start with what you know best. If you are familiar with clothing, start there. It's very easy to buy a lot, and that's the fun part, but if you don't list it, you won't sell it. So even if your list is incomplete, get it up and running and get it out there. Because there is a market for everything.
Keep learning. If you go in with the mindset, “I already know this, I don’t need the resources,” you’re likely not going to be as successful as if you went in with the mindset, “This is a great opportunity.” To learn more about ourselves, our brand, and all that. ”
I followed a lot of other resellers on YouTube. I spent hours learning the brand and learning how to use all the platforms. I learned the strategies of each store I went to and knew when to bring out new shoes for X, Y, and Z.
My local Goodwill releases new colors every week. So when I go to those stores, I only look for that color.
How much cash do I need to start a money-saving side hustle?
Of course, you'll also have to pay for gas, but $100 is reasonable, considering shipping and other costs.
[In terms of the thrifting], you can start for as little as $5. If you get one good thing for $5, you're already making more money. $5 becomes $20, which becomes $100.
If you're starting on your own, you'll need $0.
What are the most important characteristics needed to succeed in this field?
It takes consistency and persistence. Currently, I am listing 10 to 20 items a day. And because I list items every day, things are constantly selling.
I have to get organized. Patience is required. I'm not very good at it, but I'm working on it.
Most importantly, you must be willing to ask for help when you need it. You don't have to do this all alone. When I first started, my dad helped with all the shipping. He helped me move everything from various storage units. He asked for help so he didn't have to do it alone.
Are you thinking of expanding your side business in the future? What would it be like?
I'm very happy with my current situation. I think in the future I might have employees do all the things I know I don't want to do, like shipping, listing, and taking photos. That's wonderful. It's a tough job for one person.
But I love what I do now, so I wouldn't change it.
This interview has been edited for length and clarity.
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