Side Hustle vs Gig vs Passive Income – What is the Difference
What is a side hustle?
Any additional revenue from a job outside of your full-time job is considered a side hustle. Side jobs are referred to as “active income” since they require your active participation and presence in order to be successful. However, because you may select your own hours, side occupations do give you more freedom than part-time employment. You make all of the decisions, and decide when and how much you want to work.
Examples of side hustles
There are countless opportunities to earn money in addition to your normal employment. Here are a few examples:
- Walk canines for Wag or Rover
- Watch kids for relatives and neighbors.
- Provide freelance services like writing, graphic design, and marketing.
- Take an Uber or Lyft ride
- Execute deliveries for GrubHub, UberEats, or other food delivery services.
- Gaming applications for real money (you’d be surprised at how many people do this)
These side jobs offer an additional source of income for your savings, but they do demand your time and effort in order to be successful. These jobs will need to be done after your regular employment or on a weekend when you have time.
Let’s assume you have nights or weekends free and a regular 9 to 5 employment. If you walked one dog every day for $10, you could be able to make an extra $70 per week. Just walking one dog after work for 30 minutes adds up to more than $3500 a year! See how easy it may be to add a side business to your income?
You’d be astonished by the variety of unique and inventive methods people are generating extra income in addition to the aforementioned instances. I’ve personally observed folks selling candles and using 3D printers to generate income. It only serves to highlight the fact that there are tens of thousands of different ways to supplement your income.
What Is a Side Gig?
A side gig is a job that you are paid to do remotely, but it doesn’t necessarily have to be something you’re enthusiastic about. It is only another job for which you are employed and compensated.
You simply have the time to complete the task or the ability to learn how to complete it. The majority of the time, you accept the side work because you need the extra money.
Being a virtual assistant for a customer and performing a lot of administrative work is a fantastic example of a side gig. Her work, which includes setting up appointments, organizing meetings, and managing email accounts, is important but not particularly innovative. Although they do not need to be passionate about their profession, virtual assistants are aware that it might help them make extra money.
A worker is another illustration of a side business. You may take on a part-time job mowing lawn, cleaning homes, etc. for a landscaping business. However, you work for someone else and are compensated by your employer, not a client.
So, a side gig is:
Hired by a second employer Usually, you still have a primary full-time job
What is passive income?
When compared to side jobs, passive income comes from a business that the earner is not actively managing. “If you don’t find a way to make money while you sleep, you will labour until you die,” legendary businessman Warren Buffett famously stated. In other words, since your time isn’t always needed to produce money, passive income allows you to diversify your sources of income and creates a productive strategy to do so.
Even though many passive income strategies need initial inputs and setup time, your involvement gradually declines over time until you can either totally delegate responsibility or become hands-off. The ability to earn money with absolutely no restrictions through passive income is a terrific approach to increasing wealth more quickly.
Examples of passive income
The possibilities for passive income are as infinite as those for side jobs. Here are a few illustrations:
- Put money into an Airbnb or rental property.
- Receive stock dividends
- Rent out a room in your house.
- Rent a vehicle
- Run a company
The Difference Between a Side Hustle and a Side Gig
Have you ever come across someone who was unwilling to make more money? I didn’t! However, depending on the individual, the way that someone gets money through a side job (hustle or gig) might vary greatly.
While some choose the low risk and dependability of a second job, others prefer the high risk and great reward of starting and operating their own business. Whatever your inclination, there is a distinction between a side gig and a side hustle.
The emergence of the gig economy, a type of labor market where freelance or short-term contracts are more common than permanent employment, is to be expected. There are also lots of simple side tasks you can take on to boost your regular income.
The terms “side hustle” and “side gig” refer to different types of side jobs. Both allow you to make extra money but choosing the side job that best suits you will depend on your understanding of how the two vary.
The parallels and divergences between passive income and side jobs
The main distinction between passive income and side hustle revenue is how you choose to spend your time. While passive income is what you “create,” side hustles are how you “earn” money. This is due to the fact that with side businesses, you exchange your time and commitment for money, whereas, with passive income, your income is unrelated to your active participation.
