If you have read the article on the guide on creating multiple income streams, join me as this will take us further into a detailed account of the 7 streams of Income and how to become a millionaire quickly.
A recap of the previous article is we all have ways in which we view things, see things and enjoy them and that is how it is in our selection of streams to have a high-income level on a daily, weekly, monthly, or yearly basis.
As we take a deep look into the 7 streams of income and how to succeed in becoming a millionaire within a short time.
The 7 Streams Of Income To Become A Millionaire Quickly
The 7 streams of income to become a millionaire are widely known which makes them universal and acceptable among us. These streams were extracted from the 2 types of income of we have; active and in-active income.
Active income is direct involvement and being paid for the services rendered such as wages, salaries, and business profits. In contrast, in-active income is indirect involvement or no involvement at all but still getting paid limited partnerships, renting out properties, and lending out money.
Now, the extensive details of the 7 streams of Income are as follows:
1. Earned Income
The job you do; is a primary source, giving your time in exchange for money. This means your main job. An income received for a self-owned job or business or what you do for somebody else. A reward got for your labor. This includes
- Several compensations from the government as well
2. Business or Profit Income
Your gain from buying and selling or provision of goods and services and this is the main source. This can also mean side hustles or also known as ordinary income. A reward got in exchange for the services you offer. This is being self-employed which is also considered to be a form of risk-taking switching from earning to business income.
3. Loan Income
An income generated from loaning out your money. This is also known as interest income. According to the Internal Revenue Service, it is considered to be an income you earn through work or investment. There are so many ways to generate this income:
- Financing a savings plan or program
- Investing in government treasury; buying bonds from the government.
4. Dividend Income
A reward you get as a shareholder in a particular company without you being a staff of such company. After acquiring a share in an organization, you automatically become a part of such an organization and you become a direct beneficiary. A timely investment in organizations or firms can give rise to exceptional income streams.
5. Rental Income
An income generated from renting or borrowing out your properties, such as an apartment rented for monthly or annual payments or a lease. Rental, also known as asset investment, is a way of safeguarding your money and producing an income from rental.
6. Capital Gains Income
This can be generated from the buying and selling of assets. When you sell out your capital belongings, the money that comes in is the capital gain income, such as shares, investments, personal household items, lands, and other personal or collective properties.
7. Royalty Income
An income that you generate after taking away the initial expenses of the property you gave out for someone else’s use. This can be initiated by creating, building, plotting, or designing something rare or uncommon and bidding people and business owners use it.
How Many Income Streams Do Millionaires Have?
There is no direct or definite answer to this but research shows that statistically, an average millionaire has a chain of income comprising of 5 of the streams or more. However, multiple incomes make the millionaire only because there was a high level of understanding of what multiple streams of income look like and how to be able to give full concentration to all, and breaking the barriers helps them increase their streams of income. The essential key is to “DIVERSIFY”, creating other streams of income.
Do You Need 7 Streams Of Income To Become A Millionaire?
However, there is no direct answer to this because some have less while others have more, but I’d love to answer with a “YES.” However, this depends on your strength, capacity, capability, and how available you can be to achieve this set goal.
Statistics show that 29% of millionaires have more than 5 streams combined together, and some say they go the extra mile, using even more than the 7 known streams of income. As it goes, be careful not to have correlated income streams; this means having rationalized or diversified streams of business to avoid a general strike.
To some, the 7 streams are enough, but to me, it is not. The more you expand your sources of income, the greater the income generated. For instance, selling fruits can’t fetch millions, but when there is an addition of sources of income, then making money becomes sweeter. Having just one idea or sticking to just one plan is highly risky.
In the study of the habits of millionaires, Tom Corley, the author of the book “Rich Habits,” found the following in regard to self-made millionaires and their income streams:
65% of them had three of the streams of income, 45% of them had four of the streams of income, and 29% of them had five or even more. Creating multiple streams of income is increasing your investment portfolio collection. When one income stream suffers, the others make up for it. Considering the fact that if it’s going well with them, it means they are making an abundance of money. The mindset for this is that you are not concentrating on just one thing. Outspreading your income streams is key to obtaining a high level of income and minimizing your risk.
Diversifying is very essential and the only key to generating a high level of income through the creation of multiple streams of income. It tends to help to live a dream life and reduce or even eliminate worries about what the future might bring.
Having the necessary streams of income examine your portfolio and diversify, creating a long chain of your income via the use of the streams of income in this article is for your use to make millions as quickly as possible.
However, it’s also necessary to start saving now to generate funds for any source of income later on.