7 Streams of Income: Everything you need to know to become a millionaire!

If your dream is to become rich, then you would have realized by now that it is NOT possible with a single source of income! In this blog, we are going to explore 7 different ways to make your fortune more. You can increase your fortune and double your saving by practicing and using the suggested sources in this blog. 

By the end of the blog, you will learn about the ways to increase your fortune and try to implement different incomes in your life to lead a happy and luxurious life. By the way, do not forget that “Passion is energy. Feel the power that comes from focusing on what excites you.” —Oprah Winfrey”!

What is Income?

The definition of income varies across different fields. But we can say it is like a profit we get in exchange for the services or products. Income can be done in many ways, in order to get the income, you need to offer something in return. For example, if we take your workplace, you are getting paid in return for your time and skills. One source of income will never be enough to compete with this fast pacing. Let’s speed up our ways and learn to make more ways of income with this blog.

There are 7 sources of income, let’s see what are they:

Salary Income: 

The first and basic step for every person is to get a job to start getting income. The majority of the people are working because they are getting paid. The salary income is of two types, Scheduled Pay and Market-based pay. 

• • Here, the Scheduled Pay means the employees will get paid based on their years of experience, this structure is mostly followed in many private companies. 

• • Market-based Pay structure is getting paid based on your skills regardless of the years of experience. Salary Income will be paid in regular intervals of time like Monthly once. 

This is the most common income that is followed all over the world. 

Profit Income: 

Becoming self-employed or starting their own business is a dream of many employees. It is challenging to move from earned income to profit income. 

• • You will be getting Profit Income by selling the products or services. For instance, you could start a retail business and sell the products including time and services with your time and services. This type includes risks because of the unguaranteed success.

• • Profit income also varies it’s not only about business, it may include the Common percentage of profit per year in the share market is 15 % to 18% based on the share market value. Also, this income consists of getting monthly interest from your savings account and so on.

Dividend:

The process of distributing the profits of a company to its shareholders is called Dividends. The amount of the dividend will be determined by the board of directors of the company and it will be distributed quarterly or based on the respective company’s policy. 

Everything you need to know before buying your first stock – Road to successful investing

• • Dividends don’t always have to be cash, it may be adding additional stocks to your existing stocks in the company or any other form. 

• • In case, the company is in need to cash, they may not pay and make you reinvest the earnings in your company. If you are a loyal shareholder of the company, they will reward you often dividends.  

Interest:

Interest income comes under investment, where you gonna earn by investing your money in other individuals or businesses. 

• • The income that is earned by lending money to other entities can be defined as interest. In basic terms, you are going to get some percentage of money based on the interest rate and lent money. 

• • Therefore, interest money can be calculated by multiplying the total amount by its interest rate. The interest rate will vary based on the investors. One can earn interest from banks or individuals, the amount should be recorded in receipts in order to have a healthy relationship between the lender and receiver.

Rental Income:

Investing in assets and properties will never go wrong. You can earn income while investing in these things. 

• • Rental Income is one of the most profitable incomes in the market. The income that is earned by giving the properties to lease and getting paid monthly or quarterly is called Rental Income.

• • In most cases, you don’t need to pay taxes; you may need to pay taxes if your primary source of income is Rental Income. Say stop thinking and start your savings and start investing in properties.

 

Capital Gain Income:

The income that is earned through the capital assets is called Capital gains income. Capital assets are the properties like stocks, bonds, houses, land, etc which increase their values accordingly with time. 

• • This type of income will last longer and is intended to use for more than a year. There may be tax charges as per the capital gain income. The income might be short-term or long-term based on the capital asset. 

• • If you are planning to sell your capital assets, you can include the money you spent on improving the property, spent on transferring, and acquiring. Investing in assets will definitely help you to increase your income and become rich as per the measures you’ve taken.

Royalty Income:

This one is fairly self-explanatory. This type of income can be earned as a reward for other people using your patented resources. When you have an asset and people use it, they must pay for it, which means you will earn money without investing your time or manpower. 

• • Your assets will generate revenue for you! For example, if someone plays a song in restaurants, on the radio, on television, and on other channels, they should pay a percentage of their profit to the respective song owner; in this way, we can earn money by creating or using our patent rights on the resources.

• • This is the income, that will get you money endlessly, once it is available virtually. Try it out and let us know about your journey by acquiring all the possible income streams.

All of the income streams described above may be obtained through investing. Once you begin using all of the financial rules, your goal of becoming a millionaire will take shape. You may begin investing once you understand the strategies to make money. Click here to know about different ways to earn money from home. 

Check out our recent blogs to know more about Finance and Fitness. See you soon!