They say the typical millionaire has seven income streams.
- Earned income. This is typically income earned from a job or self employment. The majority of people earn their income this way. You need to invest time and money to acquire the necessary skills.
- Capital gains. This income comes from buying and holding assets which increase in value like shares, land, property, etc.
- Rental income. This income comes from renting out your property or rentals/apartments.
- Royalty income. This typically comes from intellectual property you create like innovations, patents, designs, books, etc.
- Profits. These come different businesses. There are millions of potential businesses you can create.
- Dividends. These incomes come from holding shares in different companies which may be listed or not.
- Interest income. This income comes from lending other people money. It also comes from investing in fixed deposits and treasury bills.
So how many income streams do you have?