The need to have multiple streams of income has stared at so many of us in the face, coronavirus came up all of a sudden and our jobs stopped bringing in cash for us so we knew that if not for the little things we had doing we would have gone completely hungry. With the hike in price of goods and commodities, we know that we need these streams of income to not only survive but to build sustainable income.
Experts in the field of finance have told us that an average millionaire has seven streams of income, this means that in order to build the path of a sustainable career we need to have various sources of income. This post will be analysing the various income types I have learnt.
Earned Income.
Earned income is for those who fall within the category of exchanging their time for money, this category is for professional services, or a normal 08:00am-05:00pm type of job, this job type is what put food on the table of a lot of families so it is important and must not be taken for granted, the issue with jobs like this is that, it is the most taxed type of job and since time is limited and you cannot possibly work for the entire 24 hours in a day without resting, works like this are paid based on the hours worked.
Profit Income.
This profit type of income is one of selling a product and the profit made from it becomes one for the entrepreneur. This type of income can be regarded as either a passive or active income, an active income is when you are the one making the product by yourself while a passive income is when you simply buy the product and re-sell.
Interest Income.
This type of income does not require your active involvement because all that is required is to put in your money into investments and watch it yield returns for you either on a monthly or a yearly basis. This interest rate might either be extremely high or low and there are so many platforms that are unsafe, so for this method to become effective, proper study has to be done.
Dividend Income.
This is the process of buying shares in a company and anytime there is a recorded profit for the company it is certain that you as a shareholder in the company would also be having some cheques to take home.
Rental Income.
Purchasing properties for the purpose of renting them out is also a means of income, it might be a house, a car, a property or a material whichever one is given out for the purpose of earning, is a great way of having another means of income.
CONCLUSION.
There are other several income sources that exist depending on the type you find suitable for yourself, just try to build other ways of having money come into your account to save yourself during rainy days.