It's the classic dilemma: You have passion--whether it's writing, art, acting, music, gardening, interior design, or whatever you lose track of time doing. But, you also have bills to pay--rent, car insurance, utilities, kitty litter, toothpaste, etc. Here's how to find the balance.

[edit] Steps

Learn to manage your money. You might've hated math in high school, but tracking the flow of cash through your life might be the only way you can avoid selling your soul at a job you hate. Keep a spending diary--record each and every one of your purchases in a single notebook.
Review your priorities. Were those sparkly stilettos or that plasma TV really worth the number of hours you had to spend in a cubicle, or getting yelled at by your boss, or dealing with impossible clients, in order to pay for that purchase? What in your spending diary would you happily give up if it meant spending 8 hours a day doing something you actually enjoy doing? For example, you might not splurge on take-out and beer four times a week if you weren't so depressed and/or frustrated about your job.
Do what you love on the side. If you can't find the motivation to pursue your passion part-time, you'll never be able to push yourself and make it work full-time. Prove to yourself that this is really what you want to do, and test the waters without quitting your day job. Whether it means volunteering, getting a part-time job, taking an art course, or just locking yourself in your room with a guitar, a pencil, and a piece of paper, get down to business.
Sell the fruits of your labor. Show people your work. Talk about it every chance you get. Ask for feedback. Start a website. Most importantly, learn not to take criticism personally. When you're passionate about something and others aren't so enthused, it's easy to feel like they've just told you your child is ugly. Remember that if you want to do what you love for a living, you have to offer the world something they want. That's the deal. Keep up your end of the bargain.
Take the leap. When the income you're bringing in from your passionate endeavors can reliably cover your living expenses, make the switch. Write that glorious resignation letter and become one of those people who wakes up and actually looks forward to going to work.

[edit] Tips

Lowering your monthly expenses will help a LOT. Here are some suggestions:
- Move into a smaller apartment or house.
- Get a roommate.
- Make your own meals.
- Stop smoking (it's expensive!).
- Learn to live without cable TV and/or high-speed Internet.
- Pay off your debts and avoid creating new ones.
- Use public transportation, walk, or bike instead of driving every day.

[edit] Warnings

Your success in turning your passion into a source of income may depend on your ability to approach it as a business, which, for some people, might make it less fulfilling.