6 Income Streams
Multiple streams of income is the key to building wealth.💰
Are you taking advantage of having multiple income streams?
Here are 6 different ways you create an income stream:
Selling a product or a service for a profit. This can also include freelancing. Whether you're selling T-shirts or pest control service, businesses are great ways to earn income and grow your wealth.
2. RENTAL INCOME
Rental income is money earned from a piece of property that you rent out. For example, if you own a home or condo and you rent it out, the money that the tenant is paying you to use that property is rental income.
Royalties are payments that are made to the creative owner. Think authors, inventors, and entertainers (music/movies). Every time your book is sold in the bookstore, you are getting paid a portion of the book sale. Every time your album is being purchased, you are getting paid a portion of the album sale. If you licensed your patented product for another company to use and sell it for you, you will get a portion of the sale every time that company sells that patented product.
4. CAPITAL GAINS
Capital gains is a profit from selling an investment. This could be from selling your shares in a stock, selling a real estate property (your home), or selling a car for example.
Dividends are payments to shareholders from an investment. These could be from a startup you invested in, a stock that you bought, or a real estate fund. Dividends can be daily, monthly, quarterly, or even yearly - depending on the terms of your investment.
Another great source of income is interest. If you lend money to a friend who is starting a business, you can choose to charge interest on a loan that you are lending. (also known as hard money lending) We've seen people charge interest between 5-15%. Let's say you charge 5% on the $5,000 that you gave your friend. Not only do they owe you the $5,000 but also the 5% interest on top of that. You have to be careful when lending out money, there's always a chance that someone may not pay you the money back. However hard money lending has the potential to be extremely lucrative if you have the money to giveaway and done your due diligence on the individual that is borrowing it.