Why Take on Both Certain and Risky Projects?
Some people might argue that you should only ever take projects that are certain. But the only way to earn more money is to take on more risk. The greater the risk, the greater the potential reward.
Another reason I advocate taking on risky projects in addition to certain projects is that, with time, they can turn into certain projects.
For example, if you intern or take on a side project for free to show a potential employer your skills, that employer will likely end up hiring you (provided you’ve done a good job). I’ve interned at an organization for free, and once they saw my skills they hired me for a paid position.
Another example is a blog that I started which led to a $250/hour consulting gig with a Fortune 100 company. The blog was risky (because it took time to create without knowing I would earn anything) but with time led to certain income.
Calculate the Certainty/Risk Balance That’s Right for You
To determine how much time you should allocate between risky projects and certain projects ask yourself three questions:
- How much money do I need?
- How much time do I have to get that money?
- What’s my tolerance for risk?
Last year, my goal was 1) to earn $150 a day in side income, 2) by the end of the year, and 3) with minimal risk.
So I allocated my time accordingly. I increased the number of projects I worked on that were certain to generate income (up to 80% of my time). And each day I did whatever I could to ensure that I earned $150 that day. For some of my consulting gigs this was only about a half hour of work.
For other freelance projects, that required over 2 hours of work. And some of my writing gigs required 5 or more hours of work to achieve this goal. But, by allocating my time towards projects that were certain, I got the result I wanted.
This year, I’ve shifted to riskier projects. Right now instead of allocating my time so that I make a set dollar amount per day, I allocate over 75% of my available time to risky projects.
I know that if I need to I can scale up the consulting gigs that are certain to make me money, but I love the thrill of trying something new and the possibility of having a huge payoff. These gambles are what make work fun for me.
Always Have Some Certainty
I recommend always having some certainty in your side projects. Besides the financial cushion certainty brings, when risky projects aren’t going as well your projects that are certain will build confidence and help you overcome your fear of failure.
There’s nothing as confidence building as getting off a consulting phone call where not only did you help someone with their business problems, but you also earned side income. Success from certain projects gives you the confidence and skills you need to continue with risky projects.
Step 3: Protect Your Productive Time
Even when I’m prepared and have projects certain to bring in side income, last year would have not earned me more money in less time if I had not discovered how to protect my productive time. It sounds obvious, but it’s amazing how many small tasks eat away at our most productive hours of the day.
Find Your Productive Time and Space
Before I was able to use my productive time effectively, I first had to know exactly when I was productive. Ramit’s writing on testing helped me identify and maximize my productive time.
Don’t Let Anyone Mess with Your Productive Time
Once you’ve figured out when you’re most productive, protect that time and don’t plan anything during it. Seriously, during your productive time don’t schedule:
- meetings
- doctor appointments
- coffee with friends
- errands
- class
- exercise
- or anything but those tasks for which you absolutely need full concentration
Personally, I’m a morning person. I get the most done between 6 am and 11 am. When I rescheduled the two things that used to consume most of my morning hours (taking classes and exercising) I was able to use those hours to more quickly and efficiently get the things done that require the most concentration. In the afternoon, writing an article used to take me 1-2 hours. In the morning, I can get it done in half the time.
Spend your productive time working on the tasks that require the most focus and will make you the most money.
What if I have a 9-5 job?
If you have a day job, decide how to divide your productive time. Ask yourself:
- Will you earn more money if you are more productive at your day job?
- Can you leave early if you’ve completed all your day job work?
- If the answer to both of the previous questions is no, can you rearrange your work schedule?
Then, allocate your time based on your answers to these questions. For example, if your most productive time is from 7am to 1pm and you earn more money at work if you get more done, ask your boss if you can rearrange your schedule to start work at 7am.
If you don’t, have a flexible schedule or workflow, then test to determine your most productive hours during your normal work schedule. Adjust the factors that do have control over to get the most done in the least time.
How Can I Earn More Money in Less Time?
If you want to earn more money in less time this year, these 3 action steps will help get you started. Try implementing at least 1 step of this system for the next week. After a week, evaluate and determine how you can incorporate that step into your long-term work plan.
In the comments, leave the step you are going to implement this week and how you will implement it. Be specific.
If you want more case studies — including the word-for-word scripts they use — start here.
