Thread by @itsKostasOnFIRE

How You Can Earn $1,000s By Following Jeff Bezos

7 Ways To Turn Your Expenses Into Income Sources

/THREAD/

Jeff Bezos, the visionary CEO of Amazon, made his company a global powerhouse by using the vertical integration system

But what is it and how can you utilize it for your finances?

Vertical integration is a strategy of a company that owns or controls its

• Suppliers
• Distributors
• Retail locations

to control its value or supply chain

This allows companies to

• Reduce costs
• Control processes
• Improve efficiencies

It was pioneered by John D. Rockefeller in the late 19th century to create the global behemoth Standard Oil

Amazon has used this strategy to turn its various costs into new businesses

• Product costs became Amazon Echo, Amazon Kindle, Amazon Basics, Amazon Fire
• Shipping and transportation costs became Amazon logistics
• Fulfillment costs became Amazon FBA

• IT costs and server storage became AWS
• Payment processing costs became Amazon Payments
• Marketing costs became Amazon Prime

So how can you use this strategy for your personal finances?

Here are 7 cost categories you can turn into income sources

1. Accommodation

You can rent an extra room on Airbnb

You can also rent your entire house when you go away on vacations

That way you can easily pay your property taxes and basic maintenance costs by renting out your house for 2-3 weeks per year

2. Utilities

There are many ways to save on utilities:

• Solar panels
• Rainwater collectors
• Septic tanks for sewage
• Batteries to store energy

You can earn extra income by selling to energy companies your:

• Waste as biofuel
• Unused electricity

For more on utilities check this thread by @SteveOnSpeed who has built a fully sustainable house in the desert

https://twitter.com/SteveOnSpeed/status/1345739488224563200?s=20

3. House Maintenance

You can save a lot by learning some basic craft skills for your standard maintenance

• Painting
• Plumbing
• Gardening
• Renovating

Not only you save money, but you learn skills that can earn you extra income from using them in a side hustle

4. Extra space

Use your extra space or spare room as the "headquarters" for your personal business

You can write off many standard housing expenses as business expenses and pay less in taxes

Plus you create additional income sources from your side hustles

5. Payments

Use credit cards for all your standard monthly expenses

That way you take advantage of

• Discounts and offers
• Improved credit score
• Cashback and point rewards

Credit cards can be an extra income source if used responsibly

6. Backyard

Create a vertical garden in your backyard instead of laying grass

With the water you would use to water your grass and a few extra hours of work you can have fresh

• Fruits
• Herbs
• Vegetables

You save on groceries and can sell your extra produce

7. Household tools

During the years you will accumulate a lot of tools and equipment for basic maintenance tasks in your house

There are many apps and social media groups where you can lease your tools to others for a fee and earn some extra money

To Summarize:

1. Accommodation
2. Utilities
3. Maintenance
4. Extra space
5. Payments
6. Backyard
7. Household tools

These costs can become income sources if you follow the vertical integration system

This additional income can skyrocket your finances if invested correctly

Special thanks to @DanRose999 for his amazing thread on how Amazon created AWS, converting one of their biggest expenses to one of their biggest revenue sources

https://twitter.com/DanRose999/status/1347677573900242944?s=20

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https://twitter.com/itsKostasOnFIRE/status/1386655240250920962?s=20

Check below my master thread with all my threads on

• Finance
• Investing
• Stock market history

https://twitter.com/itsKostasOnFIRE/status/1345790210441928708?s=20