Hello Hiveans!
If I tell you how many sources of income you have, 99 out of 100 people would say only one, and that too when we have a job. Well, today I’m going to share with you seven types of income sources, approximately 99 millionaires have. If you think that one can become a millionaire only through a single income source, you might be wrong. An income source allows you to cover your expenses, but millionaires are not made that way. To be successful and become wealthy, having multiple sources of income is crucial. Rich Dad author Robert Kiyosaki emphasizes the importance of having multiple sources of income. If your dream is to become a millionaire and you’re only focusing on your job without trying to build another income source, you may never achieve wealth. The problem is that people know they need multiple income sources to become wealthy, but they often struggle to identify and create them.
Let’s get started
The first one is Earned Income _This is the active income you earn through your job, whether you are a laborer, manager, or CEO. However, relying solely on earned income is not enough. The second Income source is Capital Gains. It involves buying assets such as property or stocks and selling them at a higher price, resulting in a profit. This income is tied to the appreciation of your investments. Additionally, it often incurs lower taxes compared to earned income.
The third source Is Rental Income. Renting out properties, cars, or equipment can generate consistent monthly revenue. In India, rental income is a popular second income for many, as people often earn by renting out their homes. The fourth Income source is Profit Income, which comes from selling products or services. When you sell something at a higher price than it cost you to produce or acquire, you make a profit. This could involve starting a business or engaging in entrepreneurial activities. These income sources offer advantages beyond a job, as they provide opportunities for passive income, where you continue to earn even when you’re not actively working. To become wealthy, it’s crucial to diversify and create passive income sources. Many rich individuals accumulate assets, generating passive income and contributing to their financial security.
In conclusion, the key is not to rely solely on a job but to explore various income sources and build financial stability and wealth over time. If you’re aiming for financial success and want to become a millionaire, having multiple income sources is essential. So, let’s get started on this journey to financial freedom.
If you generate some profit, it is called profit income. You can buy a product at a lower price and sell it at a higher price to earn money. Alternatively, by launching your own product or service, you can also make a profit. People around you who are selling fruits, running grocery stores, or operating juice corners are all experiencing survival profit income. This is the stage where you transition from being an employee to becoming an entrepreneur.
Now, profit income can be divided into two categories: active profit income and passive profit income. Active profit income involves working continuously, such as editing videos to earn profit. On the other hand, passive profit income, like selling services through a team without actively working, generates profit without your direct involvement.
Another type of income is royalty income. For instance, if someone writes a book and sells it to a publisher, the author earns income. The contract between the publisher and author ensures that the author receives a portion of the profit whenever the book is sold. Similarly, in the stock market, you can earn money through dividends – periodic payments made by companies to their shareholders based on profits.
The seventh type of income is interest income. This involves earning interest, similar to receiving a bonus, by lending money. Banks, for example, provide interest on savings accounts and fixed deposits. The more money you invest in fixed deposits, the higher the interest you receive.
In summary, creating these seven types of income sources is relatively easy. If you work diligently for two to three years, you can not only create these income sources but also explore additional ones. If you found this post helpful, please leave a comment and share your thoughts. Stay tuned for the next post to continue learning and smiling.