There are many different ways to grow your wealth, and one of the best is to create multiple streams of income. This will help protect you from any unexpected financial downturns, and will also provide you with a consistent flow of income.
A 2018 article on CNBC highlighted the following intriguing aspect of millionaires:
- 65% of millionaires have three streams of income
- 45% of millionaires have four sources of income
- 29% of millionaires have five or more income streams
In this article, we will discuss five different streams of income that can help you build wealth over time. So let’s get started!
#1 – Real Estate Syndications
Real estate syndications are a great way to generate passive income. In a real estate syndication, you invest in a property with other investors.
The property is then managed by a professional team, and you receive periodic payments of distributions from the profits generated by the property.
Investing in real estate syndications can be a great way to build wealth over time, as it provides you with a steady stream of passive income.
All in all, while all investments risk losing money, it’s not uncommon for real estate syndications to return an 80%-100% profit over five years.
#2 – Investment Income
One of the most common ways to grow your wealth is through investment income. This can come in the form of dividends from stocks, interest from bonds, or profits from selling assets such as real estate or businesses.
Investment income is a great way to grow your wealth because it is relatively passive. Once you have made your initial investment, you can sit back and watch your money grow without having to do much work.
Of course, there is always the risk that your investments will lose money. However, if you diversify your portfolio and invest in a variety of assets, you can minimize this risk.
Investment income is a great way to build wealth over time. If you reinvest your dividends and interest payments, you can compound your returns and make a lot of money without having to put in a lot of effort.
#3 – Business Income
If you own a business, then you know that business income can be very volatile. However, if you are able to grow your business and make it profitable, then it can be a great way to build wealth.
Business income can be unpredictable, but it has the potential to be very lucrative. If you have a successful business, it can provide you with a steady stream of income that will grow over time.
There are a few things you can do to make your business more profitable and stable, such as diversifying your products and services, expanding into new markets, and improving your operational efficiency.
By taking steps to grow your business and make it more profitable, you can build wealth over time.
#4 – Royalties and Licensing
If you have a creative talent, you can generate income by licensing your work or selling royalties. This can be a great way to build wealth over time, as it can provide you with a passive stream of income.
There are a few things you can do to make sure your work is properly protected and that you’re getting the most value for it. First, make sure you copyright your work and register it with the US Copyright Office. This will give you the strongest legal protection and ensure that you’re able to collect royalties if your work is used without your permission.
You can also sign up for a licensing service like Getty Images or Shutterstock, which will help you market your work and collect royalties when it’s used.
Finally, don’t be afraid to negotiate for higher rates when you’re selling your work. The more you’re able to charge, the more money you’ll make in royalties.
#5 – Renting out Your Car
If you have a car that you don’t use very often, you can make some extra money by renting it out. There are a number of companies that will allow you to do this, including Turo and Getaround.
To get started, simply create an account with one of these companies and list your car. Once it’s been approved, you can start renting it out to people in your area.
To maximize your earnings, be sure to list your car in as many places as possible and set a competitive price. You can also offer discounts for longer rentals or for multiple rental days.
With a little bit of effort, you can easily make hundreds of dollars per month from renting out your car.
Conclusion
If you want to build your wealth, it’s important to diversify your income sources. The five streams of income we’ve outlined are a great starting point, but feel free to explore other options that might be a better fit for your unique situation.
With some hard work and smart planning, you can create a solid financial foundation that will help you achieve your long-term goals. What is your plan for growing each of these five streams of income?
