In India, three in 10 workers are not setting money aside for savings each month from their income stream. Most of them are reliant on a single income to run their life.
While the Indian economy shows improvement, workers’ economic situation continues to suffer. More than 55 percent of workers say they are living paycheck to paycheck just to meet their ends.
Developing an additional source of income stream can help you feel secure rather than relying on a single source of income. Also, it can put you in a position to grow wealth.
Thomas C. Corley author of the book “Rich habits” has interviewed and studied the habit of 233 millionaires. Among them, 177 are self-made millionaires. Most of them were born in poor backgrounds and middle-income families.
65 percent of them have at least 3 income streams.
45 percent of them had 4 income streams.
29 percent of them had 5 income streams.
They leveraged these income sources to invest in another.
To feel safe and secure “You never want to be reliant on a single income”. Businesses are going out, markets can’t be predicted. Because the only thing constant is change. The best way to protect yourself is by having multiple streams of income.
You don’t huge amount of capital or investments to start this. All you need is “Skill”
Because skill is the future currency. The more skills you have the more opportunities would open the doors for you.
I don’t mean you have to get back to school or college, to learn these skills. It can be learned on the internet.
Incomes are two types: active and passive income.
Active income: In this, you are earning money in exchange for a service.
Passive income: It requires “little to no effort” to make.
Let’s see what are the incomes streams are used to achieve “Millionaire” status
This is the income you make for the service you provide for your employer. It takes a large chunk of your time, but this fund’s income helps you start other income streams.
Being Great at your Job can help you make a good amount of money when you show how valuable to your current employer or prospective employer. Also, looking for a Job with uncapped income potential based on performance can maximize the chance to become financially independent soon.
Having a steady income gives you stability and gives you space to experiment with your passion projects and investments.
Read more about: How to be debt free in 2022?
Millionaires set aside major portions of their income to investments in stocks and bonds. Putting your money to work is a sure-shot way to become wealthy over a long period of time. You can also collect interest in the form of dividends apart from capital appreciation.
When you are investing in a market, you let your money grow and compound over time. If you are a beginner, you can start off by investing in an index fund. Nifty has given a 12 percent average return per annum for the past 25 years.
By the rule of 72, It would take 6 years to double your money for the above return when you choose to invest in a Nifty index fund. The earlier you start to invest, the better it is.
Note: stay disciplined over the up and downtimes of the market. It will pay off.
Read more about: Why emergency fund is important than investing?
Most of the millionaires live in modest, middle-class family homes. Because rent is the highest expense we face on monthly basis. Most millionaires buy a less expensive home they can afford so they move the higher portion of the income towards investments. That’s how they stay millionaires.
Buying a small unit of home and renting out can be a great feeling. If that sounds expensive. Renting an apartment room on Airbnb can bring you extra cash.
In my opinion, it is better to buy affordable homes to rent them out than expensive ones. It’s easier to find tenants for the former than the latter.
Read about: Reducing balance loan: Why it save you money ?
Income from Farmlands:
Many billionaires and millionaires heavily invested in farmland.
Owning farmland can bring you income in 2 aspects. One land value appreciation and the other one is from the sale of crop or product.
Choosing the right strategy in line with the market can help you make this one a profitable investment. Although, its initial capital is expensive but pays off your future generations when you hold it.
Farmland has upside potential – by Warren Buffett
Royalty income is getting paid for selling rights for the product you created or invented.
Do you know Stephen Key? He made millions by selling his inventions to big brands like coca-cola, McDonald’s, etc.
If you are an author, writing journals will earn you royalty fees based on the number of readerships. Similarly, if you are a musician or painter, your work can be easily monetized.
In the era of the internet, ad revenue is a great source of income for content creators on Youtube, Instagram, etc.
Remember me saying earlier! Your skill is the “future currency”. Start something small, making a $1 will skyrocket your confidence.
I was initially doubtful before starting this blog, had a small goal of 10 visitors in a month.
I got 40 unique visitors within a month improved my confidence to write.
Just start, don’t wait for perfection.
More than half of millionaires in the world are business owners or partly invented in a business.
If you are a business owner, you can also look for incorporating additional streams of income within your existing business.
Let’s say you run a two-wheelers dealership business, apart from selling motorbikes you can also sell accessories like riding gears which can fetch you extra income.
Starting a business in what you know is less risky than following a trend that you are oblivious of.
Income from the business is one of the fastest ways to produce wealth.
I know it’s exhausting to study and explore these many income streams. Don’t worry.
You don’t need to start all the income sources at once. I know people achieved millionaire status by working on 9 -5 jobs too. Exceptional right!
You can start something small and work on it consistently and passionately. Eventually, it will grow and start to provide some extra cash. Don’t burn out yourself in this process.
The intention of building wealth is to enjoy life to the fullest. So, love the process and stick to it.
Building wealth takes time. Let’s focus on input and the desired output will follow you.
Which income stream have you started or planning to start soon? Let me know in your comments.
Thank You for reading!