This is a guest post by Becky from MomBeach.
My heart started pounding in my chest in the middle of the night, and I began shaking.
“Oh my god! I’m having another panic attack!” I shouted out to my husband, who groggily rubbed his eyes.
“Again? Hon, we will get the debt paid off. It is a baby step approach, you know,” he said matter of factly.
But the interest was piling up every month on the $175,000 we owed various creditors so why wasn’t my husband more worried?
A Debt Crisis
We were both middle-class adults who were working full time, yet were not able to pay any more than the minimum monthly payments on our credit cards, student loans, medical bills, mortgage, and cars.
It should make us feel better that we aren’t alone, but it doesn’t. 70% of people with credit card debt can’t pay it off this year.
That means that they are accruing even more debt with the high amounts of interest applied each month. You may think that those who get themselves into debt are compulsive shoppers, but that isn’t true.
Huge Medical Bills
We aren’t big on buying expensive purchases that we can’t afford. Most of the debt on our credit card was from medical bills that we incurred from our son being in the NICU.
When you are working as a contractor, you get minimal insurance, so I was stuck having to pay a majority of the hospital stay.
If the hospital bills weren’t enough, we also owed $50,000 between us in school loans.
I don’t even use what I learned in college on the job, so feel it was a waste of money. That is another story in itself.
A Turning Point
Something had to change. We tried budgeting, and it helped a little, but there had to be another way to get this debt paid off faster.
After one long strenuous day of work, I was laying on the couch watching makeup YouTube videos. I had tried doing a makeup YouTube channel, but it bombed severely. It cost so much to buy the trendiest makeup every month to use on my channel, so it didn’t help my debt.
An ad came on with a guy sitting on a white Lambo and talking about drop shipping. Although I thought he was pretentious to show off his expensive vehicle that cost more than my house, I watched his ad.
The guy, who was named Kevin David, claimed that drop shipping helped him become a millionaire within a year.
Drop shipping? I was skeptical. What was drop shipping? After doing more research on YouTube and on the web, I found out what it was.
Drop Shipping in a Nutshell
I purchased Kevin David’s $997 online course on drop shipping and set out to make my first store on Shopify. My husband approved the expense after much deliberation on my part.
You can see a detailed guide on how to create your own Shopify store here for free.
Benefits of Drop Shipping
- No Initial Investment – With drop shipping, you pay for no inventory up front because other suppliers will ship the items to your customers for you. The drop shipping suppliers I use are Wonify, a USA based company, and AliExpress in China.
- No Contact With Inventory – You don’t have to set aside space to store the items, but I recommend you send samples to yourself to view the quality first hand. This helps when pricing your items, which can sell higher than the list price.
- Low Expenses – The only expenses incurred is paying for ads on Pinterest or Facebook to bring traffic and the monthly fee of your Shopify store at $29. There are also free ways of bringing in traffic using social media and other channels.
- Limited Time Required – For those with limited time to spend after work, it is a great side hustle. You can quickly import the items into your store and fulfill orders with an app called Oberlo.
Is This the Answer to my Debt Disaster?
That weekend, after finishing the online course, I made a few hundred dollars profit with my store. I couldn’t believe the success I was having with drop shipping!
After a month, I made $5,000 profit so was able to pay more than minimum payments towards the debt owed. My husband was shocked and wanted to start learning drop shipping too.
When two years had passed, we paid off over $80,000 in debt! I can tell you that I no longer have severe panic attacks at night.
With Hard Work, You Can Make Money With Drop Shipping
Drop shipping isn’t a get rich quick scheme by any means. It takes time to learn how to market your items in ads and set up your store correctly.
Items that solve a problem are the easiest to sell because you can appeal to a customer’s emotions when writing the ad copy.
Have you ever drop shipped before or are interested in doing it as a side hustle? Sound off in the comments.