A Side Hustle will typically earn money by trading hours for dollars. There is a hustle or level of work that is required. However, there is also income related to that hustle. This is a good step towards total success and we need to move forward from hustle to passive income. In other words, do not simply invest in your career and skills, invest in future revenue.
Side Hustle Vs. Passive Income
A typical side hustle is either doing work for hire or a service that pays you for your time. An Uber driver is a good example of this. Also, a developer that works extra projects is an example of this. Passive income is where your income is not tied to your work. There is some work to get started, but then the sky is the limit. The most common form of this is earning interest on savings or investments. Your money is earning money at that point. You (and your time) have been removed from the equation.
Transition From Side Hustle
I think the biggest factor in moving to Passive Income is that you drive the problem to be solved. Often we can find automation of tasks to be a source of passive income. The task automation can be in the form of software like Quicken, but that is just one example. We can automate training people on a topic via YouTube or other video channels. We might even automate processes of some sort like Paypal automating the process of sending money. Look at the tasks you do regularly to find a target-rich environment of automation ideas.
Risk and Reward
Passive Income can have a limitless potential, but there is also a risk involved. We can read about successes that we want to emulate like Gary Vaynerchuk but do not ignore the risk. The time spent investing in ourselves and automating or improving processes may not pay off. However, a side hustle has little or no risk. In this case, we go into it knowing what we will get paid for our time. There are always risks of non-payment, but passive income has a higher risk of no return. We might build a product no one wants.
