7 Types Of Income Of An Average Millionaire - How To Become Rich #Best Education Page #Online Earning

I bet you've often heard that the average millionaire has an average of

seven streams of income constantly flowing into their pocket but if you

didn't you're welcome however the average person has only one

stream of income which almost don't waste happens to be their job while your

grandparents maybe have been able to survive on only one income source in the

past years it's nearly impossible in the times we're living in now in today's

video we'll be sharing with you the seven types of income the average

millionaires have and give you tips on how you too can have them but right

before we begin if you're not subscribed to our channel you're missing out

big-time tap the subscribe button and the bell

notification icon so you don't miss any of our videos now let's begin number one

earned income earned income is money earn from working or by spending time on

a project this could be earnings from your job salary from working for someone

or contract payments it also happens to be the most common source of income all

in all earned income happens to be the base of all self-made millionaires these

earnings give them the boost they need to pursue other income streams which we

discussed later while sustaining their lives you'll find that most millionaires

are CEOs in multiple companies which doesn't necessarily mean they own the

company but instead are employed to work in that role as for the regular person's

earned income could be from your job or even from freelancing always keep in

mind that job refers to just over broke meaning what you can earn from them is

only enough for your bills and to keep you afloat there's also a maximum on

what you can make from jobs as they depend on individual capacity for

example we only have 24 hours a day if you get a job with a maximum wage rate

of $30 an hour working ten hours a day you can only earn 300 dollars there's no

possible way of getting more than 24 hours a day to work and increase your

income get what I mean this sort of income is limiting in time

and capacity you won't be able to increase your output as one person

because you can only do so much in a day also this income source tends to be the

highest tax with an average tax rate of 40% in the u.s. meaning almost half of

your income will go to the government yikes most people settle with their jobs

and their wages create a comfort zone which

holds them back from their full potential once the comfort zone is

created they settle for their paycheck and anything that surpasses that will be

paid by their credit cards thus creating more problems it's almost impossible to

become a millionaire from just your job paycheck unless you invest wisely and

acquire the other income streams we will share with you in a minute

number two profit income this refers to earnings acquired from selling a good or

service for more money than it costs to make it this can either be at wholesale

retail distribution or manufacturer level for goods today it's so easy to

create this channel of income with the tools available online you could start

off with a small investment or large amounts of capital depending on the

available funds this income stream requires one to adopt the

entrepreneurial mindset at first it may be time consuming before you get the

grasp of it all but with time it's well rewarding whether you choose to do it

online or physically profits as an income stream can really boost your

earnings and make you a millionaire within a short time however this happens

to be risky and making the wrong move can create many losses to avoid this

ensure you do a lot of research on the products or services you want to sell

hire expert consultants to guide you through the product development

marketing and finally ensure funds are managed accordingly

especially within the first year they say most businesses closed down within

the first year of operations one of the main reasons behind this is due to poor

financial management use apps or even hire a proper accountant or financial

manager if the capital is available to ensure this doesn't happen to you for

many people profit income and earned income happens to be the only sources of

earnings that they know they tend to forget that there are other five viable

streams that can earn them some serious money I hope you're taking notes let's

proceed shall we number three interest income now this

isn't a common income stream but again millionaires aren't so common this

earning comes from lending money in exchange of some interest this could be

by saving money in the bank through Treasury bills given to the government

or by lending someone money which we do not really recommend it happens to be

one of the most secure income streams but it comes with a catch because the

return rate is also the lowest the interest rate could be between one and

five percent making it the least attractive however don't dismiss

just yet this income source doesn't need you to be actively involved in the

investment which makes it a great passive income source it also happens to

be the least risky most people doubt this income stream but when you do

consider the power of compounding and the fact that it really doesn't need you

to do anything it can easily beat the first two income streams discussed above

it's also the least involving channel of making money and one of the most secure

number four dividend incomes now it's about to get really interesting this is

one of the best income streams one because it's passive and it also makes

the participant aka you a shareholder of the company so how does it work when you

buy some shares the company assigns them to you and gives you the shareholder tag

a shareholder is a co-owner of a company depending on the company's policies

you'll be paid in dividends either quarterly or yearly dividends can be

defined as the percentage of returns earned from the shares of a company now

here's the best part you can end up paying zero tax on this income how do

you do that well if your ordinary income is less than thirty eight thousand six

hundred dollars a year you qualify for zero taxes on your dividend earnings if

you earn however more than four hundred and twenty five thousand eight hundred

dollars a year your tax rate is about twenty percent which is still much lower

than tax from earned income which also happens to be among the lowest tax rates

as good as it sounds it's really underrated and often ignored by

investing smartly on blue chip companies you could easily earn so much money

considering you'll also earn from the capital gains of the share price this

right here has to be one of the best ways to generate a healthy cash inflow

and becoming a millionaire but let's first go through all the streams so you

can see what best suits you number five rental income this is the income

acquired by renting out an asset owned this could be office space parking space

a home or even a whole building the property rented could be commercial or

residential a few years ago venturing into this sort of investment required

massive investments in capital back then you would need to buy a house or an

apartment for you to lease it out for income however today people are making

millions of dollars by leasing homes then releasing them on platforms like

Airbnb or booking.com all you need is an agreement with the

owner of the home while this can only be duplicated on

residential properties I believe that very soon with increased innovations in

this space it will be possible to earn rental income from other property types

this is one great way to add some zeros to your bank account number six capital

gains this income is also quite popular compared to the rest on this list it is

the income generated as a result of increment of value of the owned assets

for example if you buy shares at $100 each and after a couple of months you

sell the same shares for one hundred and twenty dollars the capital gains is

twenty dollars or you buy a house for let's say forty thousand dollars and

sell it five years later for nine hundred and fifty thousand dollars the

capital gains there would be four hundred and fifty thousand dollars the

most common types of capital gains are stocks and real estate property but

there are several other assets that can earn you this income the best part about

this income stream is that the tax rates are relatively low you could pay as low

as 10 to 20 percent in taxes from income generated this way depending on the

amount earned in some cases this tax could go as low as 0 with this stream of

income you increase your net worth while at the same time paying the least legal

amount in taxes if this isn't a great way to become rich I don't know what is

number 7 royalty income this is the income source that clearly defines what

passive income is all about the earnings are made even after one's work is done

to generate this sort of income you'll have to create a unique product a

concept or a process which will later be used by other people at a fee by letting

other people use your creations they do the hard work and pay back a small

percentage of their earnings to you for example an artist whose music is

streaming on Spotify will earn some royalties at the end of a given period

based on how much his music is played today venture capitalists earning

through this channel a lot if you want Shark Tank and other business pitching

series you'll notice most deals end with a royalty price on each commodity sold

another example applies to franchises for example if you open a Subway

franchise you will pay in some royalties yearly we're using their marketing

strategies processes and logo writers get paid for every book sold by

publishers another great example is JK Rowling's earnings on the Harry Potter

series she gets paid for the use of her book characters in movies or any other

and ice however this sort of income is one of the hardest to make the reason

being you have to create something that's really unique and isn't easily

replicable it requires a set of special skills to create such assets but once

done the earnings are unlimited those are the seven types of income the

average millionaire might have not all of these income streams might be in

their portfolio in fact some people have become very rich millionaires or even

billionaires by mastering one or two of the methods above one of them is Warren

Buffett who became a billionaire through capital gains and dividends he chose to

focus on capital gains on companies within the stock market

one more billionaire who has a few streams of income is Bill Gates he made

his empire through profit earnings and royalty income through his asset windows

there are so many other examples of millionaires who chose a few of the

income streams listed above but one thing's for sure none of them have

become wealthy through earned income we're not telling you to leave your job

but to start thinking out of the box of the seven streams listed select those

that suit your lifestyle those that you are good in then becoming the best you

can be in that niche don't be afraid to try something different today you never

know it could be life-changing for your family and your generations to come well

that's it for today we hope you enjoyed the video in summary the seven types of

income the average millionaire might have are one earned income to profit

income three interest income for dividend income five rental income six

capital gains seven royalty income if you want to see more of these please let

us know in the comments section also subscribe so you don't miss out on any

of our videos tap the bell icon so you don't miss any

upload with that said I'll see you in the next one

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