“Multiple streams of income is no longer a luxury. It is a necessity.”
Creating multiple streams of income is a necessity in today’s world. Most high net worth individuals have several different streams of cash coming in each month. It seems as if the 7 is the magic number, but the more, the merrier. Are you tired of getting paid once a week or twice a month? Creating multiple streams of income will bring you more security. If your bills never stop, then your income shouldn’t either.
Before we can focus on creating seven streams of income, we must first discuss what the seven streams are.
7 streams of income
- Earned income – money received from working. Trading time from money
- Profit/business income – money received from a side hustle
- Interest income – payments from money market accounts, savings accounts, or loans
- Dividend income – monthly or quarterly payments from stocks.
- Rental income – Income from rental properties
- Capital gains – profits from the sale of an asset. EX. Stocks, bonds, or real estate
- Royalties – income received from music or book sales
Income streams can dry up at any time. Because of this, It is essential to diversify your income. Even if you have a job, you never want to depend too heavily on an employer. The recent pandemic has shown us that no job is safe. It is necessary to receive passive and active income.
Don’t be discouraged if your income streams start small. My first dividend payment was for one penny. But, I was proud to receive that penny payment. Just stay focused and continue to grow your streams. It will all be worth it.
Action
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