It only took two hours for Krista Ray to sell $25,000 worth of needlepoint canvases after her side hustle, Penny Linn Designs, launched in September 2020.

It seemed like an impressive number on the surface, but LeRay and her dad had done the math prior to the site’s launch. Each 4-inch-by-4-inch cotton canvas, which sold for $50 each, took six hours to paint over the course of four months. After $7,000 spent on supplies, her profits came out to roughly $2 an hour, she says.

“It made me think this could never be my job, just because it’s so labor intensive,” LeRay, 33, tells CNBC Make It.

LeRay, then a lifestyle blogger living in New York earning up to $242,000 per year, made more money in less time posting about her brand partnerships on social media, she says. She kept painting simply because she loved the hobby. But somewhat unexpectedly, demand kept growing.

In late 2022, the side hustle became her full-time job. In 2024, Penny Linn Designs brought in $4.43 million in sales of canvases, threads and accessories, or roughly $369,000 per month on average, according to documents reviewed by CNBC Make It.

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The company’s production has become more efficient as it has grown: It achieved a 36% profit margin last year, which enabled LeRay to take a $80,000 salary, she says.

The rest of those proceeds go toward expanding the business, she adds. Penny Linn Designs now has 34 total employees and, in March, opened a 5,000-square-foot retail location in Norwalk, Connecticut — roughly 50 miles northeast from the apartment where it started.

The shop’s canvases, now made by a variety of designers that align with Penny Linn Design’s “coastal preppy” aesthetic, feature champagne bottles, Cape Cod salt-and-vinegar chips, and Taylor Swift quotes.

LeRay benefited from being early to a trend, she says: Crafts like needlepoint saw a resurgence during the pandemic, when many people looked for new ways to occupy time spent mostly indoors. Interest in such hobbies has remained solid, at least online. While the fabric store Joann recently announced the closing of its remaining stores, virtual marketplace Etsy brought in a record $2.8 billion in annual revenue.

Needlepointing specifically is having a moment, LeRay says. She suspects the recent boom traces back to a rise in social media interest, especially after needlepointed Christmas ornaments went viral on TikTok in 2023, she says.

She captures her customers, most of whom are under 35, she adds, by focusing on patterns that are accessible, both in terms of difficulty and pop culture relevance.

LeRay was originally introduced to needlepointing by her grandmother. She picked the skill back up in early 2020, when her usual fashion and beauty content felt inappropriate for her to post during the Covid-19 pandemic.

“It felt insensitive to be like, ‘This is what I’m wearing,’ when people were dying,” she says. “I enjoyed the creative process of [needlepointing] during a time where everything else felt really scary.”

She posted about needlepointing items, like belts and pillows, before she eventually started painting and selling her own, she says. For about 10 months, LeRay says she painted, packed and shipped orders from her New York apartment while bingeing TV shows like “Schitt’s Creek” in the background.

LeRay’s Penny Linn Design salary still doesn’t match what she made at the height of her blogging career — but her priorities have changed, she says. She became less interested in sharing her life online anyway after she and her husband moved to Connecticut in December 2020 and then had a son.

And while she isn’t sure if running her needlepoint business will ever be as personally lucrative as blogging was, the business and the community around it fulfills her creative needs.

Penny Linn Design’s brick-and-mortar store opened at 10 a.m. on March 1. Customers from all over the country, ranging from 12 to 90 years old, started lining up at 5 a.m., many wearing the brand’s signature cornflower blue, according to LeRay. Some waited for over two hours to get in, she says.

The experience affirmed her beliefs that her company has a large enough base to keep growing, and that needlepointing, at least in some capacity, is here to stay.

“It was a huge shock to me. We have 50,000 followers [on Instagram], but that’s always felt sort of imaginary,” LeRay says. “I was unprepared to see our online community show up like that in real life.”

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Many people consider roughly $1.5 million the “magic number” for retirement savings, according to a Northwestern Mutual survey of 4,588 Americans. But how long that much money lasts depends on where you live.

In addition to Social Security payments, $1.5 million would last a household just 17 years in Hawaii, likely falling short of a full retirement for someone leaving the workforce at 65, according to a new GOBankingRates analysis. In contrast, retirees in West Virginia could stretch the same amount for 54 years — the longest of any state.

GOBankingRates based its analysis on data from the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey, which looks at how much retirees typically spend each year on essentials such as groceries, housing, utilities, transportation and health care. The data was then adjusted for each state using the Missouri Economic Research and Information Center’s cost-of-living index.

By factoring in average expenses rather than just the bare minimum needed to survive, the data aims to offer a more realistic picture of retirement affordability across the country.

Unsurprisingly, states with the highest housing costs, including California, New York and Massachusetts, are among the most expensive places to retire.

The difference in average annual housing costs can vary by as much as $30,000 between states, with similar disparities found in utilities and health-care expenses, although they make up a smaller portion of the household budget.

Here’s a look at how long $1.5 million plus Social Security payments would last in each state on average, listed in alphabetical order, according to GOBankingRates.

• Annual cost after Social Security: $30,207
• Years $1.5 million lasts: 50

• Annual cost after Social Security: $50,997
• Years $1.5 million lasts: 29

• Annual cost after Social Security: $44,628
• Years $1.5 million lasts: 34

• Annual cost after Social Security: $30,327
• Years $1.5 million lasts: 49

• Annual cost after Social Security: $63,795
• Years $1.5 million lasts: 24

• Annual cost after Social Security: $38,559
• Years $1.5 million lasts: 39

• Annual cost after Social Security: $43,967
• Years $1.5 million lasts: 34

• Annual cost after Social Security: $37,057
• Years $1.5 million lasts: 40

• Annual cost after Social Security: $38,379
• Years $1.5 million lasts: 39

• Annual cost after Social Security: $31,829
• Years $1.5 million lasts: 47

• Annual cost after Social Security: $87,770
• Years $1.5 million lasts: 17

• Annual cost after Social Security: $38,138
• Years $1.5 million lasts: 39

• Annual cost after Social Security: $34,233
• Years $1.5 million lasts: 44

• Annual cost after Social Security: $31,709
• Years $1.5 million lasts: 47

• Annual cost after Social Security: $31,168
• Years $1.5 million lasts: 48

• Annual cost after Social Security: $28,945
• Years $1.5 million lasts: 52

• Annual cost after Social Security: $32,670
• Years $1.5 million lasts: 46

• Annual cost after Social Security: $33,031
• Years $1.5 million lasts: 45

• Annual cost after Social Security: $45,048
• Years $1.5 million lasts: 33

• Annual cost after Social Security: $36,276
• Years $1.5 million lasts: 41

• Annual cost after Social Security: $65,117
• Years $1.5 million lasts: 23

• Annual cost after Social Security: $32,310
• Years $1.5 million lasts: 46

• Annual cost after Social Security: $34,113
• Years $1.5 million lasts: 44

• Annual cost after Social Security: $29,426
• Years $1.5 million lasts: 51

• Annual cost after Social Security: $30,327
• Years $1.5 million lasts: 49

• Annual cost after Social Security: $33,331
• Years $1.5 million lasts: 45

• Annual cost after Social Security: $32,610
• Years $1.5 million lasts: 46

• Annual cost after Social Security: $36,997
• Years $1.5 million lasts: 41

• Annual cost after Social Security: $43,847
• Years $1.5 million lasts: 34

• Annual cost after Social Security: $45,829
• Years $1.5 million lasts: 33

• Annual cost after Social Security: $32,670
• Years $1.5 million lasts: 46

• Annual cost after Social Security: $50,997
• Years $1.5 million lasts: 29

• Annual cost after Social Security: $35,495
• Years $1.5 million lasts: 42

• Annual cost after Social Security: $32,190
• Years $1.5 million lasts: 47

• Annual cost after Social Security: $33,872
• Years $1.5 million lasts: 44

• Annual cost after Social Security: $29,666
• Years $1.5 million lasts: 51

• Annual cost after Social Security: $42,945
• Years $1.5 million lasts: 35

• Annual cost after Social Security: $33,872
• Years $1.5 million lasts: 44

• Annual cost after Social Security: $44,387
• Years $1.5 million lasts: 34

• Annual cost after Social Security: $34,052
• Years $1.5 million lasts: 44

• Annual cost after Social Security: $32,310
• Years $1.5 million lasts: 46

• Annual cost after Social Security: $30,928
• Years $1.5 million lasts: 49

• Annual cost after Social Security: $32,490
• Years $1.5 million lasts: 46

• Annual cost after Social Security: $42,645
• Years $1.5 million lasts: 35

• Annual cost after Social Security: $45,409
• Years $1.5 million lasts: 33

• Annual cost after Social Security: $37,237
• Years $1.5 million lasts: 40

• Annual cost after Social Security: $45,108
• Years $1.5 million lasts: 33

• Annual cost after Social Security: $27,803
• Years $1.5 million lasts: 54

• Annual cost after Social Security: $36,516
• Years $1.5 million lasts: 41

• Annual cost after Social Security: $34,173
• Years $1.5 million lasts: 44

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Low points are inevitable in any relationship; no two people can see eye to eye all the time. But when push comes to shove, how do you know if your relationship has the foundation to endure? 

As a psychologist who studies relationships, I’ve come to learn that thriving relationships often share some key traits.

Here are four simple questions that can determine longevity of your connection. If your answers are all “yes,” you’re likely on solid ground.

Every healthy relationship should be grounded upon a foundation of friendship. Imagine your partner as just a friend: Would you still want to spend time with them, laugh with them and turn to them for support?

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Couples who say “yes” to this understand that relationships require a lot more than just passion and commitment. Studies even show that if like your partner as a person, your bond will be much harder to break.

On the other hand, some couples stay together out of habit, fear of starting over or because they feel they’ve already invested too much in the relationship to let it go. This is what keeps people in unhappy relationships for years.

Your life partner should bring out the best in you. Does having them in your life make you feel supported, loved and inspired to grow? Or do you feel stifled, diminished and drained?

Truly great relationships often reflect what’s called the “Michelangelo effect.” Just like the artist shaped raw stone into breathtaking sculptures, healthy partners will “sculpt” each other into better versions of themselves. They encourage your goals, cheer on your successes and remind you of your worth even on hard days.

Unhealthy relationships can have the opposite effect. If being around your partner makes you feel small, criticized or unsure of yourself, it’s worth reflecting on why. The way you feel when you’re around your partner is often one of the biggest clues about how healthy your relationship is.

No one is perfect, but ignoring flaws isn’t really what love is about. Rather, we all have to learn that those imperfections aren’t what define your partner, nor your relationship. Couples in healthy relationships don’t rely on fantasies of how the other person could change — they focus on loving each other as they are presently.

This doesn’t mean you should tolerate toxic behavior. But it does mean accepting the small fumbles and imperfections that make your partner human, like forgetting to pick up their socks once in a while or telling the same joke over and over.

If you can genuinely say you’d choose your partner if they stayed exactly as they are, warts and all, then you’ve likely built a relationship that can stand the test of time.

One of the clearest signs of a strong relationship is that your partner isn’t just there for the hard times — they’re also your go-to person for sharing your wins. When you get exciting news, do you instinctively reach for your phone to call them? Do you look forward to celebrating your successes together?

Psychologists call this “capitalization,” and research shows that couples who actively share and celebrate each other’s good news tend to have stronger, happier relationships. It builds a sense of partnership and camaraderie — one that reinforces that your joys are their joys, too.

Mark Travers, PhD, is a psychologist who specializes in relationships. He holds degrees from Cornell University and the University of Colorado Boulder. He is the lead psychologist at Awake Therapy, a telehealth company that provides online psychotherapy, counseling and coaching. He is also the curator of the popular mental health and wellness website, Therapytips.org.

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When approaching conflict, most people aim to get their way, while others try to find common ground. This is a mistake authors Robert Bordone and Joel Salinas say.

In their new book “Conflict Resilience: Negotiating Disagreement Without Giving Up or Giving In” the two argue that trying to solve conflict strips the interaction of its value and that you’ll gain more from having those tough conversations if you’re trying to learn, not trying to win.

“We think of conflict as having the possibility for furthering connection and for actually building a relationship,” Bordone says. He is the founder and former director of the Harvard Negotiation and Mediation Clinical Program.

People who are good at navigating conflict don’t have the mindset that disputes are bad.

“If your orientation about what you’re going into is so negative, it’s just much harder to be adept at it than if you have a different and, I would just say, more accurate frame on it,” Bordone says.

In fact, they see it as an opportunity to validate the other person’s side. Instead of coming in with a list of points, they prioritize listening and asking questions.

“The work of being conflict resilient is entering into a landscape that doesn’t have a script because it’s motivated by a sense of curiosity about something of the other person,” Bordone says.

Salinas, a behavioral neurologist and clinician scientist at New York University, says people who excel at handling skirmishes — whether in their personal life or the workplace — also know that sometimes its unrealistic to expect to see eye-to-eye.

“There are certain areas of disagreement that it’s just impossible to resolve,” he says.

To bridge divides over the course of a conversation, you need to actually try to understand the other person’s fears, Kurt Gray, a social psychology professor at the University of North Carolina, Chapel Hill and author of “Outraged: Why We Fight About Morality and Politics and How to Find Common Ground,” told CNBC Make It earlier this year.

“So often we go into these conversations and it’s not a conversation,” Gray says. “It’s a chance to score points or try to make the other person look stupid. A real conversation is something where you ask questions.”

Gray recommends taking three steps to have better conversations when you’re in a disagreement with someone:

1. Try to understand their motivation: Ask questions and express genuine curiosity as to how they came to their conclusion.
2. Validate that motivation: Even if you don’t agree with their point, you can affirm that you understand how they got there.
3. Emphasize your personal connection: Instead of peppering them with facts, be vulnerable and tell them why you disagree with them on a personal level.

Others are more likely to find some merit in your argument if you share a personal anecdote, as opposed to some statistics, to show why you stand where you do.

“Establishing a connection with someone, seeing them as a fellow human being, I think it goes a long way,” Gray says.

Both of you will leave feeling better and more respected if you at least make an attempt to understand each other.

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The idea of working a traditional 9-to-5 in a corporate environment was never for me. I always wanted financial freedom and the flexibility to work on my own terms.

So, over the past two decades, while I was a student, a full-time employee, an academic researcher and a stay-at-home mom, I started a variety of side hustles.

Now I have multiple streams of passive income, which include selling card games on Amazon, creating online courses, speaking at companies about emotional intelligence, lecturing at universities and impact investing.

Whether selling goods or providing services, my No. 1 advice for anyone starting a side hustle is to develop a clear profitability plan. All too often, I see people diving into their passions without considering how and when they will turn a profit. This oversight can make or break your success. 

Here are three things to keep in mind:

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How much are you willing to invest, and potentially lose, before becoming profitable? Knowing this requires a realistic understanding of your initial net profit margin and ways to boost your profitability.

Your net profit — calculated by subtracting expenses from sales — is the lifeblood of your side hustle. Examples of expenses include materials, labor, equipment, packaging, shipping, advertising, traveling and business subscriptions.

Your profit margin represents the percentage of each sales dollar you keep as net profit. For example, if your product or service sells for $10 and your expenses amount to $8, then your net profit is $2, resulting in a profit margin of 20%. If you’ve invested $100 upfront, then you need to sell 50 units to break even.

To fund my first card game and boost early profitability, I launched a Kickstarter campaign with a $1,500 goal. This funding covered essential expenses like product manufacturing and jump-started my sales by getting products into the hands of early adopters. 

I needed to sell 60 units to break even but ended up selling over 400 units. This higher sales volume allowed me to manufacture at a reduced cost per unit, which improved my profit margin by lowering my cost of goods sold (COGS).

I found that there are three traps that can severely undermine the profitability of a side hustle:

1. Underpricing your services

When I was selling handmade goods on Etsy, I made the mistake of chasing sales over tracking profit. Hoping to establish credibility, I underpriced my products aggressively and went above and beyond in customer service. 

But I soon realized how difficult it was to raise prices once you’ve set a low-cost precedent. Despite making thousands of sales on Etsy over the course of five years, I ended up having to close my shop due to slim profit margins.

2. Failing to accurately account for your time

That experience helped me grasp the difference between running a passion project versus a profitable business.

Recognizing the need for scalability and efficiency, especially when it came to the time I was putting into it, I pivoted to selling products on Amazon and utilized the automated Fulfillment by Amazon (FBA) service to handle logistics.

3. Overlooking opportunity costs

I’ve also stumbled upon similar dilemmas when pricing my speaking and consulting services. When I first started out, I lowered my fee in hopes of securing contracts from big names like Accenture and Google.

But when they came back the following year, I had to raise my fees significantly because my opportunity costs — the cost of what I could have been doing and earning with my time — outweighed what I was charging. I learned the importance of valuing my work from the start.

Over the years, I’ve developed a more expansive definition of profitability. It isn’t just about money. Profitability is also about how this venture affects your quality of life. Your physical and mental well-being come first.

To see if your side hustle is truly profitable, ask yourself:

1. How much money am I willing to invest in my side hustle?
2. How much time am I prepared to dedicate to my side hustle?
3. Is my goal to make my side hustle into my main hustle?
4. At which point do I pivot if the reality is not matching my answers to these questions?

It’s been exhilarating to see my hard work pay off. But this process has also required me to have a very clear understanding of what I value the most, and to get comfortable with saying “no.” Without that foundation, none of my success would have been possible.  

Dr. Jenny Woo is a Harvard-trained educator, EQ researcher, and founder/CEO of Mind Brain Emotion. She created a series of educational card games and mental health tools to help kids and adults develop human skills in the age of AI. Her award-winning card games, the 52 Essential Coping Skills, 52 Essential Relationship Skills, and 52 Essential Conversations are used in 50+ countries. Follow her on LinkedIn, YouTube, and Instagram.

Want to earn some extra money on the side? Take CNBC’s new online course How to Start a Side Hustle to learn tips to get started and strategies for success from top side hustle experts. Sign up today and use coupon code EARLYBIRD for an introductory discount of 30% off $97 (+taxes and fees) through April 1, 2025.