We’ve heard the warnings about following your passion.
People ask if you can *actually* make money doing what you love. They frame the question “passion or profit?” as though these are in opposition.
The majority – who have never tried – decry, “what if you fail?”
Nobody asks the more important question: what if you succeed?
Are you still going to love your passion when you rely on it to pay the bills?
We grapple with that question in today’s episode, which is devoted to side hustles and starting a business. We use questions from two of our listeners as a jumping-off point to discuss the realities of going into business for yourself, doing what you love.
We share examples from our own lives as professional podcasters, as well as from the lives of friends who are full-time photographers, musicians, writers and other creative entrepreneurs.
Enjoy!
P.S. Got a question? Leave it here.
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Here are the details:
Gearet asks (at 01:43 minutes): How do I monetize my passion without burning out?
I’ve always loved music. Since I started focusing on monetizing it, I’ve been booked most weekends with paid shows. Playing music is fulfilling, but the other work such as social media, marketing, booking, and accounting feels like a drag.
I’ve heard the warnings about turning a hobby into a job and I’m especially wary because I work an intense 9-to-5.
How do I determine my next steps, and how I can pursue my passion in a smart financial way?
Liza asks (at 41:31 minutes): My husband and I want to take a mini-retirement or retire early to spend more time with family. At 44 and 47, which changes can we make to allow us that flexibility?
I run a seasonal inn, which is also my family’s home. The business covers most of our housing costs, but the net income is small. The income varies between negative cash flow and $15,000. The Inn is valued at $1.4 million. It has an outstanding mortgage of $205,000.
My husband nets $90,000 per year. He wants to quit working to spend more time with a sick parent in Europe. He may return to work immediately or wait six months to a year and start another job that may pay significantly less.
We have $130,000 in retirement accounts, $300,000 in cash, and €100,000 in an account in Europe. We also have a paid-off rental property worth $380,000 that cash flows $12,000 per year.
I’m considering paying off the mortgage on the Inn. It’s on a commercial loan with 15 years left. The first five-year ARM ends in December this year. Then the interest rate will likely rise above 6.76 percent for the next five years.
I’d also like to invest some cash in index funds and the Euro while it’s cheap, but I’m not sure how much to reserve with our impending loss of consistent income.
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