10 Essential Side Hustle Principles for Lifelong Success
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Chapter 1: Introduction to Side Hustling
If you’ve ever contemplated launching an online business or side hustle, this article is tailored for you.
It’s been almost five years since I initiated "Making of a Millionaire." I began by penning articles on Medium, which, looking back, I often find cringe-worthy. Fast forward to today, my Medium publication has expanded to include over 100 writers, my Substack boasts more than 10,000 subscribers, and just last year, I published my debut book. The journey has taught me a wealth of knowledge about content creation and online side hustles, much of it through trial and error.
Here, I’ll share ten rules of side hustling that I wish I had known back in 2018.
Section 1.1: The Importance of Multiple Income Streams
- You need precisely two income streams.
Side hustles have gained immense popularity for two key reasons: people are realizing the risks associated with relying solely on a single income source, and starting a business or earning money online has never been easier (I manage my entire operation for just $300 a month).
I define an income stream as a distinct monthly revenue source that can reliably meet your living expenses. Having an additional income stream is incredibly empowering. For many, losing a job can lead to a full-blown crisis; however, with an extra income source, you can maintain your lifestyle even during tough times.
Once you’ve established a second income stream, it can be tempting to pursue a third and fourth. Resist this urge. When my side hustle in writing evolved into a secondary income, I became eager to explore more revenue streams like online courses, YouTube videos, and podcasts. This led to diminishing returns on my efforts, negatively affecting my enjoyment of my day job and the profitability of my writing endeavors. I learned that focusing on my most successful side hustle was the best use of my time and energy.
- You need two income streams, unless one is passive.
If one of your income streams requires no effort from you, then adding a third can make sense. For me, my active streams include my 9-to-5 job and writing, while my passive stream is my investment income.
Section 1.2: Understanding Passive Income
- Grasp what passive income truly means.
Contrary to the claims of many internet marketers, selling your online course or book is not "passive income." After launching my book, I can attest that writing, publishing, and marketing it requires significant work.
What is commonly referred to as passive income is actually scalable income, which means there’s no guarantee of earnings, but your potential is limitless. Genuine passive income originates from investments, such as dividends from stocks or interest from bonds—revenue that doesn’t require active involvement.
- Expertise trumps passion.
A significant mistake I made early in my side hustle journey was following my passions without considering my expertise. This led me to start a home fitness brand, despite having only a hobbyist's knowledge in fitness. Unsurprisingly, it failed. Passion can be a double-edged sword, igniting enthusiasm but also clouding judgment. Treat your side hustle as a business, making calculated decisions based on profitability. The ideal scenario is finding a niche that excites you and where you possess expert knowledge.
- Select the right medium for your skills.
Another reason my fitness brand faltered was my attempt at video creation, a medium I was not skilled in. I thought of myself as a "high-energy person," but that energy didn't translate on camera. I lacked the necessary skills for lighting and sound, leading to frustration and burnout. Writing, on the other hand, became my natural outlet. Though my initial attempts were rough, it was far more enjoyable than video-making. Identify the content creation method that aligns with your strengths and passions.
- Commit two years to mastering your craft.
A while back, I listened to a podcast featuring the CEO of Gumroad, who shared a profound insight: achieving expertise in any field requires two years of focused learning and practice. This is akin to completing a four-year college degree, where much time is spent socializing. If you aspire to excel in content creation or launching an online business, dedicate yourself to mastering your subject, the platform you choose, and your teaching abilities. Invest two consistent years in these areas and observe the transformation in your life.
Chapter 2: Monetizing Your Side Hustle
Video Description: This video rates various side hustles I've tried, sharing valuable insights on what works and what doesn't.
- Develop a product to generate scalable income.
Writing articles has been a passion for four years, and my income from this has steadily increased. However, about two years ago, I recognized that to elevate my writing career, I needed a product to sell—something to scale my income. The obvious choice for a writer? A book, which I published last month. Having a product that aligns with your daily content is tremendously advantageous because much of the groundwork has already been laid. As a writer with a book, I have control over my marketing efforts, independent of any external platforms or algorithms.
- Reinvest your earnings.
This is where the worlds of side hustling and personal finance intersect. Since my 9-to-5 income sufficiently covers my living expenses, I reinvest all profits from my side hustle. Initially, my writing income came solely from articles, which I invested in the stock market. Now, with a book and a paid newsletter, I can channel profits into marketing these products. Rather than using side hustle earnings for luxuries, invest them back into your business or in assets that foster passive wealth.
- Establish a clear exit strategy.
If you’ve followed my work, you may have encountered my perspective on financial freedom: doing what I love without the stress of financial concerns. For me, this means generating enough income from my writing and investments to cover my bills without worry. While I currently achieve this most months, income volatility can be frustrating, especially since I enjoy my 9-to-5 job and appreciate the flexibility it offers. My current objective is to build enough passive investment income to cover half of my family’s living expenses, allowing me to pursue my passions without the pressure of financial instability.
- Remember your original motivation for starting a side hustle.
One of my greatest fears as I transition to full-time writing is trading my day job for 40+ extra hours on my side hustle. Part of "doing work I love" is having control over my schedule. The goal of all this effort is to create my ideal life—attending my son’s games, enjoying vacations without guilt, and sleeping peacefully without work-related worries. The ultimate dream of a side hustler is freedom. If I reach a point where I can leave my 9-to-5, it would be tragic not to invest more time in what truly matters.
If you find my insights helpful, consider picking up a copy of my book, "The Financial Freedom Equation."
This article is for informational purposes only and is not intended as financial or legal advice. Always consult a financial professional before making significant financial decisions.
Video Description: After trying 100+ side hustles, I reveal the top 10 that can lead to significant wealth.