Types of Income Streams to be Millionaire

Three types of income stream to be millionaire

How many streams of income do you know? What is your source of income? Are you generating money using only single stream? How many streams do the wealthy millionaires apply? Which is the best stream for you? There is much more to earning money than what you are probably aware of...Continue reading...

There’s a lot of competition going around the world to get rich quickly and about how to become a millionaire overnight, but the truth is that No-one can become millionaire overnight it requires hard-work , time and different source of income. I am going to share some of the streams that the millionaires use.

Here are 3 Income streams for millionaires :-

1. Earned Income

Earned income is a income which you have earned from job by receiving a paycheck for your work. When you earn money through a paycheck, you are exchanging time for money. For example, when you work as an employee as a web designer, a grocery store cashier, or a police officer, you are getting paid a predetermined amount of money (X) to do that job for a certain amount of time (Y).

Earned Income from Job

People who make their money through earned income can just earn enough money to cover basic monthly expenses, leaving little to no money left to invest.If they want to make more money, they need to work more hours at their full-time job or through a part-time job or freelancer which will lend them to pay bills for their necessities.

Now, this is where your quality of life will suffer the most, because you will be trading your time for money. Do you know, What does JOB means? JOB means Just Over Broke. Now, the reason why most people are not able to think beyond earning money through a job is because Job will provide you with a 'relatively' comfortable zone.Unfortunately, this comfort zone will become your biggest enemy and will keep you away from leading an extraordinary life. You will spend the maximum time of your life in this income stream and still will never have enough money to lead a truly wealthy life.

2. Passive Income

Passive income is the best source of income which can help you to live a luxurious life. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements.

An income stream falling into this category is one where money is received usually on a regular basis, where no additional effort has taken place.

Passive Income

'Interest Income' money is the money you get as a result of lending your money to someone else to use, e.g. putting it in the bank, lending it to the government in the form of buying Treasury Bills etc. This is a great source of passive income where your active involvement is not needed once the investment is done.

Dividend income is even better than Interest Income. It is equally passive and not only that, it also makes you a shareholder of a company. This is the money that you get as a return on shares of a company you own. For e.g. the dividend that most companies announce at the year end. The better this stream of income sounds, the more ignored and neglected is this source of income.

3. Portfolio Income

Where earned income is acquired by exchanging time for money, portfolio income is made through capital gains.

Portfolio Income

As an example, when someone buys stock in a corporation at a given price, they plan on selling that same stock at a higher price in the future. So, if they buy a stock at $50 today, and the price goes up to $100 when they sell that stock, they make $50 in capital gains. That capital gains is their profit.

This is how stock traders traditionally make their money. They invest money in stocks they feel are undervalued now with the expectation that when the prices rises they can sell those same stocks for a capital gain.

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The biggest risk to your financial life is being dependent on only one income stream where you are actively involved. Each of these streams are one step above the other. You just need to get into the details and understand them more. Try it out. It could well be life changing for you and your upcoming generations.

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