7 Books to create 7 Income Streams To Create Wealth like Millionaires
Millionaires, a group of people who are less than 1% in the World.
Drop "Yes I'll be next Millionaire" in comments below if you aim to be Millionaire someday.
- Who to become Millionaire?
- Will you ever be able to join the Millionaires group?
Drop "Yes I'll be next Millionaire" in comments below if you aim to be Millionaire someday.
7 Income Streams To Create Wealth like Millionaires:
1. Active Income / Earned Income:
Active Income or Earned Income is the income earned in exchange of value and time. The majority of the population today are surviving on Active Income. It is also known as a core income source. To earn the higher income you must be able to use your time effectively. I would recommend reading, The 7 Habits of Highly Effective People. A book that can take your active income to the next level.
2. Income from Investment:
Income from the investment is my personal favorite. If you are a Stressfree Investor, you work for active income and convert them into investment and if you scale it to international business, you can easily make money while you sleep. Let say, you invested in stocks or mutual funds or index so basically you are investing in companies where people work day and night to make money for you, while you are sleeping on your couch or doing what you love. Follow Rule No. 1 😃
3. Dividend Income:
My next favored income is Dividend Income. I have already discussed dividends in my previous post Go for Dividend Mutual Funds over Growth Mutual Funds. Dividend incomes are best because they fill the long gaps between two Your Salary is Credited to Your Account message 😄 I know they might not be frequent but, it all depends on your investment. Also, it is very important to understand the snowball effect in the case of dividend income. So earn nicely, spend wisely.
4. Interest Income
Interest income is the most important income for the conservative investor. But, from Millionaire's perspective, they only hold cash for the emergency expense and waiting for the right opportunity. Always remember Millionaire don't invest because they have money, they invest when an opportunity is in their favor. Interest income can be earned through so-called risk-free investments like Fixed deposit (FD), Public provident fund (PPF), National saving certificate, etc. You can also take some additional risk and invest in Debt Mutual Funds, Non-Convertible Debentures (NCDs), Fixed Maturity Plans (FMPs). But, blindly investing for higher returns can be risky (You can check out my previous post: Is RISK taking a significant factor in an Investment Strategy?). I hope you are aware of the recent Debt and FMP Crisis.
5. Rental Income from Real Estate
Rental Income is the most favor income for Millionaires. This is because, in this investment, demand is high compared to supply. Also, there are only a few investors doing bulk buying in Real Estate. With a change in demand-supply combination recently, investors are moving into the commercial property investment over housing property investment. If you are planning to earn rental income avoid going into the Debt Trap. I have seen many people investing in Real Estate by taking a loan and assuming it as rental income, but, instead not even earning risk-free returns.
6. Income from Capital Gain
Capital gain is a very confusing word, some assume it as income from buying and selling of shares others assume it as income from buying and selling of property. Actually, both are right. Any gains from the sale of property or an investment can be considered as Capital Gain. You can also check for taxation terminology in your country. Usually earning it is very easy if you know when to buy and when/where to sell. But, it misses the power of compounding and needs active monitoring.
7. Other Income
There are many types of income like Royalty income, income from traveling, income from credit cards, referral income, etc. Also, streams of income can keep on fluctuating their headers. Just imagine, you are New Youtuber and for few initial years, Income from YouTube might be your active income but, after a few years, it can turn into a passive income.
Conclusion
When you get into the money-making mindset, you don't have to think about making money, you automatically make it through all your transactions. If you check out my blog topics covered section, you'll find topics on How to Become Rich, How to Make Money, etc all these will help you develop your personal finance and change your life forever and you will surely, Enjoy the life of Stressfree Investor 😃
Keep Enjoying the Life of Stressfree Investor 😃
