10 Side Hustle Rules I Will Follow Until I Die
If you've ever wanted to start an online business or side hustle, this post is for you
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It’s been nearly 4-years since I created “Making of a Millionaire.”
It started with me writing articles on Medium that I cringe at when I am forced to revisit them. Today, my Medium publication has over 100 writers, this Substack publication has over 6,000 subscribers and growing, and last month, I published my first book.
I’ve learned an insane amount about creating content and side hustles online, and I have learned a lot of this the hard way.
Today, I share with you the 10-rules of side hustling that I wish I knew in 2018.
#1—You need exactly 2 income streams
Side hustles have gone mainstream for two reasons.
People are waking up to the fact that depending on one income stream is dangerous.
It’s never been more accessible to start a business or make money online (I run my entire business for $300/month)
I define an income stream as follows: A unique source of monthly income to reliably cover your living expenses.
There’s nothing more empowering than having a second income stream.
For most people, losing their job is a full-blown crisis. If you have a second stream of income, you could lose your job and still maintain your standard of living.
That’s powerful.
Once you’ve created a second income stream, it’s so tempting to tell yourself that you create a 3rd and a 4th income stream.
Don’t do that.
Once my side hustle/writing career grew into a secondary income stream, I got excited and tried setting up endless streams of new income:
Online courses.
YouTube videos.
A podcast.
I was spreading myself too thin.
This began to impact my enjoyment of my day job and the profitability of my writing side hustle.
I learned the hard way that my human capital has diminishing returns. Since my side hustle of writing was successful, I was best served to focus on writing rather than these other income streams that all demand time and energy, which are finite resources.
#2 —You need exactly two income streams … unless one of those income streams is passive
If one of your income streams requires zero effort on your part, then it makes sense to have a third income stream.
Two of which are active; for me, that’s my 9–5 and my writing.
One of which is passive.
#3 — Understand what passive income is (and isn’t)
Contrary to what internet marketers will tell you, selling your online course or book is not “passive income.” Believe me, I just launched a book, and nothing about writing, publishing, or marketing a book is passive.
To successfully sell something requires work, which by definition is not passive.
What most people refer to as passive income is actually scalable income. Scalable income means you are not guaranteed to make a dime, but there is no limit on your earning potential.
The only true source of passive income comes from investment income.
Dividends/capital gains from stocks and interest from bonds are great examples of passive income. The income I earn from these assets doesn’t require me to lift a finger or even think about them. This concept is actually the entire premise of my next book.
#4 — Never forget that Expertise > Passion
One of the biggest mistakes I made early in my side hustling days was to blindly “follow my passions.”
That’s how I started an at-home fitness brand, even though fitness was a hobby of mine, not something I had expert knowledge in.
Predictably, the business failed.
I also spent a lot more time than I should have to try to keep it going. Passion is a double edge sword; it can create energy, but it can also cloud your judgment. You need to treat your side hustle like a business. Any successful business needs to make cold, calculated decisions based on profits.
The real trick is to find a topic you are passionate about but that you also have expert knowledge in.
#5 — Choose the medium that fits your skillset
There’s a second reason my at-home fitness brand failed; I was making videos, and I am not a video creator.
In my head, I am a “high-energy person.” But when I started watching videos of myself, it became painfully clear that the energy I was feeling on the inside did not translate on the outside.
Also, I have no talent for how to light a video or set up optimal sound quality.
The whole thing became very frustrating and contributed to a major sense of burnout by the end.
Once I started writing, it became clear that this was the right outlet for me as a creator. Sure, my writing sucked when I first started, but it felt a lot more comfortable and much more enjoyable than creating videos.
Find the right type of content creation that matches your skillset as a creator and that you actually enjoy doing.
#6—Put in your 2-years at creator college
A while back, I was listening to a podcast with the CEO of gum road, where he dropped one of the best truth bombs I’ve ever heard on what it takes to make it in the creator economy.
It takes two years of intense learning and apprenticeship to become an expert at anything.
He compared it to a 4-year college degree where you spend half the time partying and half the time working.
If you want to become an expert at creating content or starting an online business, you have to dedicate yourself to learning the following.
Becoming a subject matter expert in your field.
Mastering the medium/platform on which you choose to create.
Your ability to teach.
Spend two straight years working on all three of these points every day and watch what happens to your life.