Surveys show that self-made millionaires have multiple income streams: Here’s how they did it Also in this package
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Dubai: Global surveys show that self-made millionaires have multiple income streams, but how do they go about it and how does it work if you already have a full-time job?
There is a renowned global study of 6,000-plus wealthy individuals that was conducted over the span of six years, as well as another five-year survey that studied the habits of millionaires.
Based on it, we look at possible steps one can take to build income streams like a millionaire to help challenge misconceptions about millionaire wealth and myths that hinder your money from growing. What research reveals about millionaires and their income streams What research reveals about millionaires and their income streams
The above research of the daily habits of the rich, showed that self-made millionaires have had multiple income streams over the years:
• 65 per cent of self-made millionaires had three streams of income.
• 45 per cent of self-made millionaires had four streams of income.
• 30 per cent of self-made millionaires had five or more streams of income
Also, each additional stream they added gave them wealth that they could then leverage and invest into another. Research of the daily habits of the rich showed that self-made millionaires have had multiple income streams over the years. What are the types of income millionaires have?
Here are the types of income they had, which can be divided into seven categories.
1. Investment income: This is the money earned in the form of dividends from stocks owned. Dividends are regular payments of profit made to investors who own a company’s stock.
2. Earned income: This is the common salaried income earned from contracted employment.
3. Rental income: As the name suggests, it is the rents from properties they own.
4. Royalty income: These are payments for royalties from selling rights to use something they’ve written or invented.
5. Capital gains: This is the money you get from selling assets whose values have appreciated.
6. Profits: This the money earned after deducting expenses from businesses they own.
7. Interest income: This is essentially money from savings, deposits, bonds, or other lending activities.
Diversification of investment (the practice of spreading your investments around so that your exposure to any one type of asset is limited) has been around for ages, but these findings show that this idea can be applied to income streams.Moreover, these findings also show that diversification or creating multiple streams of income isn’t just a survival technique for those looking to minimise losses when putting all their money into one asset, but rather it’s also a strategy for building wealth. What should I learn from these surveys in order to become a millionaire? Here are 5 key takeaways! What should I learn from these surveys in order to become a millionaire? Here are 5 key takeaways! •
#1 – Having a full-time job is a plus, so is investing in stocks and property Your employment income will be what funds your other income streams. Still, it will provide you with stability to diversify your income and experiment with your passion projects and investments.Stock and property investments are regarded by experts as the most consistent, long-term, passive source of income.Here’s why. Allowing your income to be consistent means letting the profit pile up without spending it or reducing the amount you invested.Ideally, you will only increase the amount, but if you allow yourself to be patient in the long-term and you place your earnings back in the market, you will earn compounded interest — profit on your profit.However, veteran investors opine how this will only work if your investment strategy is low-risk, long-term and passive, working on the backburner while you do other things. When striving to be a self-made millionaire, having a full-time job is a plus, so is investing in stocks and property. •
#2 – Start a business on the side, let the business generate more income streams An interesting trend among millionaires is that most of them have businesses of their own – ones that they have either launched as entrepreneurs or by having partly invested in another start-up.According to a study by the Economist, about half of the world’s millionaires own their own businesses. Another key takeaway is to find multiple streams of income to incorporate within your existing business.For […]