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Alex Hormozi: How to Go All in on your Side Hustle

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updated 11 May 2023

The video discusses a three-step process of transitioning from a side hustle to a main hustle. A side hustle is defined as a main hustle that hasn't gained enough size to support oneself financially. The first step is to secure the family financially by living below one's means and having a certain amount of savings (e.g. six months of living expenses). The second step is for the side hustle to match the income from the current job. Alex Hormozi suggests stacking as many things in one's favor to make this transition at the lowest risk possible. The third step is to sustain the level of income from the side hustle for an extended period of time (e.g. six months). Alex shares his personal experience of starting an online charity project to get his friends to pay him $200/month for fitness and nutrition programming. When he later decided to transition to his main hustle, he asked his friends to pay him instead of the charity, which gave him $4,000/month of income, allowing him to quit his $50,000/year job. He suggests using what one has, maintaining relationships with early supporters, and remembering them when one succeeds.

How to Go All in on your Side Hustle

Summary

  1. Secure your family financially by living beneath your means with just the income from your job. Build up savings, ideally six months of living expenses, before starting your next thing.

  2. Your side hustle should at least match your income from your current role before making the jump. Consider whether you can make the same income working on your side hustle full-time or with more hours.

  3. Sustain the level of income from your side hustle for an extended period of time (e.g. six months) before transitioning to your main hustle. Reduce overhead costs and use what you have to save money (e.g. renting a bedroom for a discounted rate). Remember and appreciate the people who helped you in the early stages.