To become a millionaire you need to be making money, but not as much as you would think. This video explains how anyone making a normal amount of money can obtain the status of a millionaire. It is important to understand that a lot of millionaires have 7 steams of income, but you do not need that many. The following are ways that you can add a stream of income to your bank account.
Earned Income- Is the income that you get for working. Most people get this while working a day job. The great thing about earned income is it tends to be the lowest barrier of entry, that is why most people are able to make this money. Earned income also is the most stable for the majority of people. Work=money. If you ever want to get wealthy, this CANNOT be your only source of income unless you are making ludicrous amounts of money for your job as a corporate executive or professional athlete. Even then, people of these titles expand their sources of income because they know that they will not have their jobs forever.
Profit Income-This income comes from selling off items for a profit. A way that I get profit income is from selling items on Ebay and Facebook marketplace. An example of this was when I bought some Segways and sold them to people. This made me around 400 dollars and took almost 0 work, I just happened to be at the right place at the right time. Unless you really know how to hustle, I would only recommend this for people that want to make a couple extra bucks here and there.
Interest Income-This comes from putting money in a saving account. It won’t make you much, but it is better than just your typical checking account. Free money in an incredibly stable place? Sounds like a good plan to me.
Dividend Income-When you own stocks, some companies pay out what’s called dividends. These dividends can really add up if you have a lot of money invested.
Rental Income-My favorite because of what do for my job: help other people make this! If you own real estate and rent it out, you can really make a lot of money over the course of your lifetime. Rental income is very hard to live off however unless you really try and scale your business.
Capital Gains-The money you make when you sell off an appreciating asset. Real estate that you bought for 100k, held for 10 years and sold for 150k is a 50 thousand dollar capital gain. This is another reason that real estate is such an efficient way to make money.
Royalty Income-This is the passive income that one earns when they create something and it earns them money for a long time. Examples of this could be ad revenue on a blog or Youtube video or a digital course that someone sells. In my opinion this can be the most rewarding but most difficult stream of income to achieve. I have been working for 30 months on making royalty income but still have a long ways to go before I will start making money. I think it it important for the creator to enjoy what they are doing to become successful at this.
Parker's Properties 