The 7 streams of wealth you can make to diversify income, reduce risk and build wealth faster.

Here they are:

Earned income: 

This is the income you get from your job or self-employment. It is usually based on your skills, time, and effort. You pay taxes on this income at your ordinary tax rate.

Profit income: 

This is the income you get from selling goods or services at a profit. It could be from your own business or a side hustle. You have to deduct your expenses from your revenue to get your profit income.

Interest income: 

This is the income you get from lending your money to others, such as banks, bonds, or peer-to-peer platforms. You earn interest on your principal amount over time. This is a passive income stream that requires little to no work from you.

Dividend income: 

This is the income you get from owning shares of a company that pays dividends. Dividends are a portion of the company’s profits that are distributed to shareholders. This is another passive income stream that lets you benefit from the growth of a company without actively working for it.

Capital gain: 

This is the income you get from selling an asset for more than you bought it. 

It could be a stock, a property, a collectible, or any other valuable item. You have to pay taxes on your capital gain when you sell the asset.

Rental income: 

This is the income you get from renting out your property or equipment to others. 

You can charge a monthly fee or a per-use fee depending on the type of asset. You have to maintain and manage your asset to keep it in good condition and attract tenants.

Royalty income: 

This is the income you get from creating something that others want to use or consume, such as a book, a song, a patent, or a software. You earn royalties every time someone buys or uses your creation. This is a passive income stream that rewards your creativity and originality.

These are the 7 streams of wealth that can help you achieve financial independence and security. Of course, you don’t have to have all of them at once, but the more you have, the better. 

You can start by focusing on one or two streams that suit your skills, interests, and goals, and then gradually add more as you grow your income and wealth.

I hope this information was helpful and informative for you. 

Learn more:

1. incomebuddies.com   2. investedwallet.com     3. howtofire.com

Related Posts:

Previous Blog                                                                                                                  Back to home