Do you want to be a millionaire? Yes, you.
The average millionaire has 7 streams of income. Most people? One – a job.
Shoot.
Most people are OK with only having a job. If not, they go on and create ‘multiple jobs’, like baking and selling cakes, copywriting, video editing, etc.
The only problem is… you have a limited supply of time (which is your greatest asset)
What happens when you stop baking and selling cakes? Do you still earn?
Creating multiple jobs will definitely increase your income, but you’re still trading time for money.
The streams of incomes.. Woohoo!
Other than having a job or multiple jobs, I have good news for you!
There are 7 income streams that you can have, such as:
- Business Income – Income from businesses or side hustle
- Interest Income – Income from savings accounts, Fixed Deposits, Bonds, peer-to-peer lending, etc.
- Investment Income – Dividend Income from stocks / REITs
- Rental income – Rental Income from real estate
- Capital gains – Income from selling assets that have gone up in value. e.g. a business, stocks, a house, etc
- Royalty Income – Royalties from owning the rights to something.
- Earned income – Income from employment aka ‘job’
Millionaire status debunked.
I am personally not interested in achieving the ‘millionaire’ status. Paper wealth is (generally) good for nothing.
It may make you feel more superior, but honestly, if that’s your goal, then you’ve probably gotten the term ‘financial independence’ wrongly.
Looking at the seven different income sources, we should only interested in five of them.
Within these 5 income streams, they center around three major concepts:
- Acquiring assets (Real estate, stocks/businesses, etc.)
- Having positive cash flow (either monthly/quarterly/yearly)
- Assets increase in value.
There are two income sources in which we should NOT be interested in as much:
- Earned income – a job (because I don’t want to continue trading my time for money)
- Capital gains – Income from selling assets.
However, the only time we should ever sell my assets are:
- When there’s a better opportunity to increase my percentage of investments.
- When we make losses – admit our mistake and move on.
Read Here: Gain 5% of more annualized returns, interested?Blood and sweat
Most people spent their lives acquiring a monthly paycheck.
This paycheck is earned through their time, literally their lives… aka blood and sweat.
Other than just trading time for money, you are losing the opportunity to create more streams of income.
Whether you have a cleaning job or a professional career, in some sense you are only paid when you work.
This does not happen when you invest or have a business running without needing you.
You can literally earn money while sleeping by having investments/businesses.
In my humble opinion, investment is vital.
It helps lessen the burden of ‘what if’s.
“What if we can’t survive through this month? What if our loved ones fall sick and we can’t bring them to the doctor?”
It sucks seeing people dear to your heart suffer and you can’t do much about it due to limited finances.
The main reason why you need to invest is that it has the potential to reduce your need for earned income.
Once you have enough monthly positive cash flow (which is generated from your investments), you have the choice to choose what you want to do in your life.
Read that again.
First, acquire assets.
Then, let the assets generate positive cash flow to feed your monthly living expenses.
And you’re free!
Formula: Invest in assets > assets generate positive cash flow for your living expenses > you’re financially independent.
You don’t need to clock in and out and worry what your boss would say anymore.
If you find purpose in working in your job, continue working!
If you find purpose in doing something else, go do it!
Or, you can choose to retire early.
Most importantly, you now have TIME.
- Time to be with family, friends, and loved ones.
- Time to travel and explore places.
- Time to learn and grow.
- Time to enjoy your hobbies without a schedule.
By focusing on building income streams, you unlock the doors to a whole new world of possibilities.
And this cannot be found through a job/monthly salary only.
If you’re reading this, I hope you take this seriously and start investing.
Let time be your friend in investing because you can compound wealth! The same amount of $400 monthly makes a big difference: $192K vs $1.25 Mil
The three most harmful addictions are heroin, carbohydrates and a monthly salary. – Nassim Nicholas Taleb.
