36-year-old mom making $10,000 a month or more in passive income: My best advice for starting a successful side hustle

When I first heard about the concept of passive income in my 20s, I laughed at the idea. Growing up, I had never met anyone who made money this way. 

My mindset completely changed after a conversation I had with a woman I really looked up to. She earned passive income from her real estate business. Seeing someone who I knew and trusted achieve this seemingly impossible goal, made me feel like I could do it too — although it took some time to finally get there myself. 

Four years ago, I was dealing with postpartum depression and struggling with a 9-to-5 job in higher education administration that didn’t bring me joy. I decided to start selling digital products like business templates and party games on Etsy. To my surprise and delight, the side hustle started to take off. 

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As a 36-year-old mom of two, I now make $10,000 in passive income or more every month from four passive income streams. 

Here is my best advice for starting a successful side hustle: 

Passive income doesn’t mean no work. It means front-loaded work that pays off later. No matter what kind of side hustle or passive income venture you are starting, thorough research can help you avoid costly mistakes.

Many people get excited about their first idea or opportunity and jump at it, without running the numbers. For example, when I first started on Etsy I made budgeting templates. I found that these didn’t sell very well because there was low demand and high competition. 

It was only after I took the time to research keywords and trends through Pinterest and Google Trends in the space, that I started to create more specific — and more successful — items for the shop. 

I highly recommend doing financial projections and understanding the expenses you’ll have before you ever spend a penny. One of the main reasons businesses fail, or never begin to thrive, is because they run out of money. 

In many cases, this problem can be predicted and dealt with proactively if you take the time early on to project your expenses.

Building passive income streams requires an investment of time, and many people underestimate how much time they need to allocate upfront. 

It’s easy to get distracted by day-to-day responsibilities (especially as a parent or full-time employee), but they’ll never come to fruition if you don’t make time to work on your passive income projects. 

Schedule dedicated time each week to focus on and stick to your passive income goals. For example, when I first started, I would spend 8-10 hours each week developing the skills I needed for my business, and I did this for months. 

Once I became serious, I started spending 20-30 hours a week actively creating products. Now I spend as a little as 15 minutes a day working on it, responding to messages and client inquiries. 

Studying successful passive income earners has taught me that success doesn’t come from quick wins but rather slow and steady progress toward a specific goal over time. In short, consistency is key.

The beauty of passive income is that it allows you to earn money without everyday active involvement. Automation is your best friend in this process. 

Because I sell digital products on Etsy, the platform comes with the ability to deliver automatically once a payment is processed. I use Convertkit to automate my email marketing.

Automation can save you time and help your income streams remain steady. I’ve found that failing to automate means more manual and mental work, and less freedom.

No one achieves success entirely on their own. Seeking help from mentors, financial advisors, and experts can significantly boost your chances of success. 

I dabbled with side hustles for years, but it wasn’t until I found a course by Gold City Ventures while listening to a podcast that taught me how to sell digital products on Etsy that I successfully created a passive income business.

After taking the course, I was able to get my business up and running and making money in about a month. It took about nine months before I started making passive income consistently. 

Surround yourself with people who have the knowledge and experience you lack. They can offer valuable insights, keep you accountable, and help you avoid pitfalls. 

Most importantly, they can encourage you when you feel like giving up.

Relying on a single source of income can leave you vulnerable to market fluctuations and unexpected changes. I’ve talked to so many business owners who are still recovering from the effects of the pandemic because they put all their eggs in one basket: Their business. 

My passive income portfolio includes stocks, bonds, real estate, and my small business, which sells digital products on Etsy and on my website. 

Diversification is essential to spreading the risk and increasing the chances of consistent returns.

I’ve seen countless people get stuck in the planning phase, waiting for the “right moment” that never comes. I’ve made that mistake too.

I credit studying positive psychology in grad school with helping me break free of those fears. Marilee Adams’s book “Change Your Questions, Change Your Life” helped me develop more of a growth mindset and change my internal dialogue from asking questions like, “Why bother?” to more optimistic ones like, “What can I learn?” 

The truth is, there’s no perfect time to start, and failure is always a possibility. However, the sooner you take action in a smart way, the sooner you can learn, and the higher your chances of reaping the rewards. 

Even small steps, like starting to research and educating yourself, can lead to significant progress over time. It’s vital not to let fear of failure or analysis paralysis keep you from starting your journey to passive income.

Rachel Jimenez is an entrepreneur, professor and mom of two, with a passion for helping others achieve their personal, professional and passive income goals. She runs an Etsy store as well as a blog, Money Hacking Mama, where she shares financial wisdom and practical advice for women navigating their careers, businesses and life.

Want to make extra money outside of your day job? Sign up for CNBC’s online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories.