Among many income streams of millionaires, which one do you know?! They became millionaires because they are never dependent on just one stream. Instead, they have over 7-8 income streams that bring them a million dollars.
After all the researches, we have chosen these final 7 income streams that made us 80000 dollars last year because we followed the millionaires’ income streams.
If you are also dreaming of getting such a significant amount of money at the end of this current year, then just like we did, you too should follow the mentioned streams below.
Earned Income
Earned money means the money which you get by working or the payment you get from your job. This is the period for you to face most sufferings with your quality life. The reason is you will use your valuable time for making money.
But the fact is most jobs don’t pay you much no matter how hard you’re working or how long you’re spending time for it.
Although the comfort zone you will get from jobs will make you feel like you are okay with what you have and don’t get to live extraordinary lives.
This income stream will only make you keep spending your time while not paying the money you worth. We so must not depend on one income stream, or else making a lot of money will just be a dream forever.
Profit Income
Profit is earned by the entrepreneurs via their business like retail or wholesale and also by distributing or manufacturing.
About the profit, if you want to make a huge profit, you have to invest huge too though you can even start a small business and gain little profit.
Later you can invest more in the same small business and make it large slowly. Of course, this will also cost you many of your times when you’re in the initial stages or until you make your business strong enough that it can bring money on its own.
To make that this strong, you should know how to manage the business really well. Be sure of you are mentally always ready to take risks.
Only then will this let you get more money. The realization of having business comes at different career stages, but most people don’t know how to take the steps.
They are afraid of taking risks and, thus, don’t take further steps. The needs or family constraints work here as an important reason which stops a person from going on risky paths.
Honestly, once you overcome this risk related problem, there’s no more worry to have. Now, the first thing you need to make a product or service you are going to provide in your business.
The key to success here is management, manage the time, products, services, and customers hence be ready to make profits all the way.
Most people pick these two as income streams, but hey, wait! We still have five more viable streams to generate wealth.
Interest Income
We all know the interest we get from banks by lending the money to someone else. This can be an easy way to make passive income.
The thing is, you don’t need to involve yourself the second time to earn money when you have already invested once. To bring the most profit out of this way, you have to have the power to compound.
When you have that power, this will beat the previous two money generation streams we discussed. The three crores INR can make an income of INT 1.5 lacs every month, and this amount is much more than just feeding and keeping the family good.
Dividend Income
A more profit bringing income than interest is dividend Income. You become one shareholder among many of a company and make passive income through it.
The money you obtain is the return from the profits of the company you hold a share of. People think it of a risky way to make money and often neglect this better option.
Nothing special you need to have for earning money. Just act smart and invest in good blue-chip companies. Once the profit starts coming, you can understand that this way works more effectively and gets you money like no other way.
Rental Income
Renters get huge passive income by renting out their apartments or lands. This is a way to make a high income in the long run and has drawbacks. The main drawback is the amount of money needed to create apartments or get land.
It will generate money, but for that, you need to have some. So, it will take a long time to make many such assets when you have only one or two income sources.
Try to involve yourself in at least 3-4 income streams, and you will sooner find the money required to create many assets. The other drawback we wanted to tell you is its liquidity.
The assets can not be quickly liquefied in all the times of your need. Earning money by investing a small amount as 1000 dollars via interest or dividend Income is easy but not possible via renting because you should have assets to rent first.
Capital Gains
Well, people who own assets love gaining money this way. When the value increases, the owner can get a large amount of money by selling it.
For those who don’t understand capital gains, let us simply explain it to you. Suppose you hold a share of $10 and sell it at $11. Here the $1 you profited is counted as your capital gain.
Now, if you bought your house at 200 thousand dollars and sell it to somebody else at 220 thousand dollars, your capital income will be $20 thousand.
Although taxes will be charged, there are also ways by which you can come around taxes.
Royalty Income
Royalty Income is when you earn by letting someone else use your ideas, products, or even processes. The revenues they make by putting all their hard works and efforts, you always will be paid a percentage from them.
For making it easier to understand, if I write a book, publishers will use it and sell it as books. The profits from the books sold will also be sent to me at a great percentage. This that I got from my writing is my royalty Income.
To because of success in this income stream, you must create unique things and make them repeat. Lots of effort and talent are needed to make such assets, but the money will come continuously once made.
It’s better to use some of your time earlier in making such assets to millions of dollars sooner or later.
Final Thoughts
We have to share everything in detail about the seven income streams that made us last year, $800000. But we didn’t follow all the seven income streams.
Even Warren Buffet, the billionaire, followed just 4 and 6 number streams also, another billionaire Bill Gates generated his income by profit Income and Royalty Income.
It’s up to you how you choose and understand the streams. Also, the management needs to be great. It’s possible to make millions of dollars in just one year, but you have to follow some streams with patience and keep going on. Also, if you liked our ideas visit us more.