Multiple income streams are the key to building wealth and automating a passive income. Millionaires on average have 7 streams of income. I'll show you the 3 most common among the rich so you can begin building real wealth like the rich today!
I’m just going to say it. Your job is not enough anymore. In fact, it’s kind of risky to rely on only your job’s income.
You see, company loyalty is gone! We can’t count on companies anymore to look out for us. It’s actually the other way around.
We have to watch out for them. We can’t trust them to do what is best for us and our families.
Companies are greedy!
Even if the CEO has the best intentions, they base their decisions on what makes the most profit for the company. That secures their job and ensures that the investors in the company are happy.
If their goal is to obtain a certain amount of profit and the only way to hit that goal is to cut 50 jobs. That’s what they’re going to do.
Investors are after one thing, PROFIT. They’re not there to ensure your family is secure or that you’re living comfortably.
It’s truly sad, but this how most companies work today:
- Investors own the companies.
- The CEO and executives work for the investors.
- The CEO and executives jobs are to squeeze out as much profit as possible for investors.
So where are we in that equation as the workers for these companies?
We are the “labor”, the “human resources.”
Management’s job is to ensure that we are doing what is necessary to create the profit for the investors.
All the profit that we create simply goes to the investors and the executive's large salaries, bonuses, and stock options for creating that profit for them.
Us “workers” are simply paid “market rate.” We’re paid the lowest rate we will accept as a group.
So for example, if they need someone to do accounting for them, they look for someone who has the knowledge and experience to get the job done at the lowest rate possible.
If possible, they hire an intern. If they need someone with a little more experience they look for a young entry-level employee at the lowest rate possible and so on.
There’s always a new, young, and inexperienced “worker” out there willing to take a low starting salary and this continues the cycle of keeping wages low for everyone.
Raises are becoming non-existent. 2% to 3% isn’t a raise. It’s simply the cost of living.
This is economic inequality. This is today’s job market. This is why you need multiple streams of income.
It’s time for us to take our future into our own hands and stop relying on companies to tell us how our future is going to turn out.
What Are Multiple Streams of Income?
Well, to start, your job income is one source of income.
Now, let's say you are married and your spouse also has a job. That’s another source of income.
You are now at 2 sources of income. That’s a lot better than one, but don’t stop there!
Unfortunately, that is where most people stop though… Most people get a job and then just accept what they’re getting in their paycheck.
This leads to bad or mediocre income at best. They just get too comfortable with their jobs and then they are stuck.
They load up on debt and then are stuck at that job because they rely on their paychecks to pay down all that debt.
Don’t do it….
Instead, start creating a new source of income that is not your job.
This gives you power! It gives you freedom! There really is nothing like the feeling of financial freedom.
Let’s say you are working for a company and they decide to make some changes that you don’t like. No problem.
Just quit! You have the income coming in from another source to help sustain you while you search for a new job. That is the power of multiple sources of income.
Even better, over time your multiple sources of income may grow to the point that you don’t even need to retain a job as a source of income. Wouldn’t that be awesome!
This is the key to building wealth and financial freedom.
The average millionaire has 7 sources of income! How many sources do you have right now?
If you only have 1 or maybe 2, it’s time to start working on creating your third source of income!
The Millionaire’s 7 Streams of Income
So how are these millionaires creating 7 streams of income?
Well, each one is different and will have different types and amounts of income streams, but here are the most common streams of income for millionaires:
1. Earned Income
This is where most people get their income. This is usually a job. You are trading your time for money.
2. Profit Income
Profit Income comes from selling a product for more than it cost to buy it or make it. Typically from starting some kind of business.
3. Interest Income
The money you get from lending your money to someone else, a bank, or company.
4. Dividend Income
Dividends usually come from owning stocks. Some companies you hold stock in pay out dividends to its investors.
5. Rental Income
This type of income comes from owning a property and renting out portions or even all of it to renters.
6. Capital Gains
Capital gains are the increase in the value of your portion of company ownership. This is generally gained by owning a stock that increases in value.
7. Royalty Income
This is the most uncommon method of the 7, but basically, it is a situation where you own something like a piece of art, business, or intellectual property and sell the rights to another person. As they sell the items, you get a royalty from it.
Those are the 7 most common sources of income for millionaires, but I like to break it down into a much easier to understand method. I call it the Wealth Triad.
The Wealth Triad
The wealth triad is the 3 most common ways to build wealth. The most wealth you will gain will come from these 3 places:
- Owning a Business
- Real Estate
- Stock Investing
Notice, it’s not coming from a job.
Even high paying jobs like doctors or lawyers don’t generate as much wealth as someone who has wealth generated from one of these three sources.
So how do YOU start generating your own extra source of income from one of the wealth triad methods?
I’ll tell you how…
How You Can Create Multiple Sources of Income
You probably have a job right now. That’s your first source of income. Maybe your significant other or spouse has a job as well. That’s the second source of income.
Maybe you have some other source that is your third. If not, you need to create your third.
Take a look at the Wealth Triad and determine which route would fit you best. Here’s a breakdown of the different methods:
This is one of my favorite sources of income. You invest money in stocks and your stocks gain value, and maybe even create dividends for you. This is an awesome way to build wealth.
The downside is that stocks can be risky if you don’t have the knowledge to invest well. Also, the growth can be slow in the beginning if you are starting with a small amount of money.
It’s worth it though. The payoff can be huge. I never thought I would make the money I do today when I started stock investing.
It’s almost like a money tree that just keeps on giving!
If you like analyzing numbers and companies, this might just be the perfect addition to your streams of income.
Real Estate has been around forever and still remains one the best ways to build wealth and generate income.
There are lots of ways to make money in real estate.
- Rent a room in your home with Airbnb
- Rent a house or multifamily property
- Flip a house (buy it, renovate it, and sell it for a profit)
The possibilities can be endless with real estate.
I’ve owned several rental properties in my life and I even flipped one property. It’s hard work, but if real estate is your thing, there is definitely potential to create a brand new income stream with it.
Owning a Business
Starting a business is probably the most common method people try when attempting to create another source of income.
A business can be hard to get started, but they are so rewarding when they work. Making money on your own by providing a product or service to others is exhilarating and freeing.
I highly suggest starting a small side business. Don’t try to go to the extreme of starting a brick and mortar business like a restaurant for example.
Start with a side hustle. Starting a business is a huge undertaking and trying to eat the whole elephant will just stress you out and generally get you nowhere.
Identify your skills and passions and start a side hustle to learn how to run a business before taking it to the next level.
Here are some side hustle ideas you could start quickly:
- Sell a product on Etsy.
- Landscaping/mowing for neighborhoods around your house.
- Start a family photography business where you go to their homes or to beautiful parks.
These few examples are easy to start and don’t take much investment up front.
There are lots of side hustle opportunities out there you could start in no time.
The Freedom of Multiple Income Streams
Any of these methods can create an awesome income stream and once you have multiple streams it opens your minds to the possibilities.
The lie we’ve been fed since we were kids about getting a job and working until your 65 is BS. There’s a better way to live. A way to live where you're not trapped by your job and reliant on them for your own financial success.
Millionaires on average have 7 streams of income. How many streams do you have now?
Choose a new stream that you want to explore and dig in. Learn about it and take action.
Once you have a few income streams, the power leans into your favor. You’re no longer reliant on a job for all of your income and soon enough those extra income streams may exceed your job income, and you may decide to drop the job altogether.
Multiple Income Streams = Financial Independence
Multiple Income Streams = Freedom
Create a new income stream today to get on the path to financial independence and freedom and you’re life will change forever.
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CREATOR OF LET'S AUTOMATE YOUR MONEY WITH MY LOVELY WIFE KRISTA