Many people want to be a millionaire, but don’t quite know how. It is not that difficult really, but it does take time and knowledge. You need to know what the millionaires know. Millionaires don’t typically get rich off of one income stream, but more usually from multiple income streams. If you want to be a millionaire one day, you have to start thinking like one. In order to do that, start working on your income streams. These streams are not in any particular order, but most usually do start with a salary.
This income stream is from your job. Most millionaires have a pretty decent high income skill that helps them make a decent living. They tend to learn more, develop their skills on their job, and then use that money to launch them into other streams. This is a millionaire’s least favorite income stream, but an important starting one.
2. Business Profit Income
This is the money you can earn from starting a business. Most millionaires start a business and begin with working in the business. They establish systems for running the business and then hire people to run those systems. Once profits start coming in, this becomes a passive money stream. Sure, you have to keep an eye on the business and keep it thriving with new innovations and ideas, but the profit income is mostly passive.
3. Capital Gains Income
This is the money earned from owning an investment and then selling it. It could be money earned from selling stocks, bonds, or real estate. Capital gains is taxed differently depending on whether or not you hold the investment for a year or less. If you hold the investment for over a year, you pay less taxes than buying something, making and profit, and selling it in less than a year.
4. Cash Flow Investment Income
This is the money that is earned from owning stocks, bonds, index funds or real estate. But this is not the money earned from selling them. This is the money you earn from owning them. For example, most stock market investments will pay out dividends every quarter and some even pay out each month. You could also earn this money from owning a rental property and receiving rent each month. This is the plus side of the money that you get to keep once you pay the cost of owning the investment.
5. Interest Income
This income is earned from a savings accounts, certificates of deposit (CD’s), or lending money directly to people or businesses. With a savings account or CD, the interest rates are pretty low with some as low as .001% going up to about 3%. When you lend money directly to people or businesses, you can charge higher interest rates in the 5-10% range or more.
This is money earned from creating something one time and then just sitting back and collecting money when it sells or is used. For example, people create YouTube videos one time and receive monthly income from their videos due to ads and view counts. An author writes a book and receives royalties every time the book is sold. You could even create a digital course one time and then collect profits every time someone signs up to take the training. There are a number of ways to earn royalty income. You just need to be creative.
The point to takeaway here is that your best chance at becoming a millionaire is to increase the number of income streams you have. Start with your salary, develop a high income skill, and then use it to launch another income stream. Focus on one income stream at a time and get it going before you start another. As each income stream develops, you will earn more money that can help launch other income streams. Do this for long enough, and you are pretty much guaranteed to hit the millionaire status. Of course, you have to be smart with your money. If you earn a lot of money and waste it, becoming a millionaire may be impossible. But begin financially smart and starting to add income streams, is the way to up your game.
When is the right time to start? Right now!!! The earlier the better. Get to work on your income streams if you want to reach millionaire status one day!!!
This post was inspired by the Minority Mindset’s 7 Income Streams That Millionaires Have.