Having More than Once Source of Income Can Make You Rich. Here's How to Make it Happen

Asia's Tech News Daily

Did you know that really rich people rely on several sources of income — not just one? 

54% of Americans live paycheck to paycheck, Rich Habits, made at least $1.15 billion, two-thirds of working millionaires were self-employed, The Millionaire Next Door, asset allocation

Depositphotos.com contributor/Depositphotos.com – MarketBeat

The reality is that a total of 54% of Americans live paycheck to paycheck — that’s 125 million U.S. adults, according to LendingClub and PYMNTS. Of this group, 21% struggle to pay their bills, which means they don’t have money left over after they spend what they earn. In addition, about 40% of those with annual incomes over $100,000 live paycheck to paycheck. Of those who make between $50,000 and $100,000, 53% live paycheck to paycheck. The research also said that 72% of those who make less than $50,000 per year live paycheck to paycheck. 

The solution? Diversify your income streams, according to the author of Rich Habits. Of the 233 wealthy individuals Tom Corley interviewed for his book, 65% had three income streams, 45% had four income streams and 29% had five or more income streams.

Think having multiple income streams makes a lot of sense? Let’s walk through how you can make it happen for yourself.

Multiple Income Stream Sources

Does the concept of multiple income streams seem completely foreign to you? It’s quite possible that it’s never dawned on you before. In school, nobody teaches you to go after multiple income streams — typically, teachers and professors train you to go after one career, pursue that particular option and save for retirement through that one job. 

So, how do you diversify your income? How do these income streams work? Let’s take a quick look at a few options, though by no means is this an exhaustive list.

Dividend Income

If you invest in stocks, you may get dividend income from your investments. Dividend income refers to payments you receive from a company when it pays all of its shareholders for owning shares. You can calculate dividend income yield by dividing the annual dividends paid per share by the price per share. Mature, established companies will most likely pay dividends.

Earned Income from a Job

Yep, this is the one your teachers trained you for. You want to add this into the mix because it might provide you with the most security, especially if you’re working to try to launch multiple income streams early on. Think of it this way: You’ve already diversified your income stream if both you and your spouse or partner each work at a job. It’s a great start!

Real Estate

Billionaire Andrew Carnegie once said that 90% of millionaires got their wealth by investing in real estate. Whether that percentage actually rings true (it might be a bit of a fudge), there’s no denying that many millionaires still consider real estate one of the best investments, particularly because it’s so versatile. You can flip a house, rent it out, sell it when it appreciates in value, further develop the lot, add parcels, subdivide it — the list of options goes on forever. In addition, you may also consider buying land as another income source.

Royalties

A little more difficult to come by, royalties on something you’ve trademarked or written could become a source of income. Consider author J.K. Rowling of Harry Potter fame: The New York Times estimates that the novels have raked in at least $7.7 billion. Rowling could have made at least $1.15 billion with a standard author’s royalty cut of 15%, and that’s without her theme park royalties, movie royalties and more. Obviously, that’s an extreme example, but it could happen. She has one of the most amazing rags-to-riches stories of all time. 

Capital Gains

Consider all areas in which you can profit from the sale of an asset. You can earn money on tangible assets, such as real estate or even a vehicle, or intangible assets, such as stocks and bonds. You earn capital gains when the selling price of an asset exceeds its purchase price.

Business Profits

About two-thirds of working millionaires were self-employed in 1996, according to The Millionaire Next Door. Then, self-employed people made up less than 20% of the workers in America but accounted for two-thirds of the millionaires. The book says that three out of four considered themselves entrepreneurs.

It was true then and it’s still relevant today. 

Investments and Savings

We’ve mentioned dividends and capital gains already, but it’s important to mention the root causes of raking in dividends and capital gains: savings and investments. Whether you invest in stocks, bonds, mutual funds, retirement accounts and more, you may benefit from stock market returns, which, historically, have yielded about 10% per year over the last century.

How to Zero in on the Right Income Strategy

What does this all mean for you? Should you tackle all types of income listed above? Focus on two or three? Here’s how to decide. 

Tip 1: Take a look at the options. 

What appeals to you the most? How can you see the list of options working together? If you dislike the idea of real estate, don’t do it. Focus on a side business and capital gains from your investments. If you don’t want to work at a regular job anymore, focus on buying up properties and starting your own side hustle. You have to do what’s comfortable for you. 

Tip 2: Develop a savings mindset.

First, save at least 10% of your income every year — though you’ll save even more if you want to become a millionaire faster. Diversifying your investments by choosing the right asset allocation, investing automatically each month and staying disciplined gives you a head start.

Tip 3: Develop new skills. 

What are you good at? How can you develop it further? Whether you like to tutor kids, edit essays or coach soccer, develop skills that you can turn into a side business. If possible, turn these opportunities into passive income strategies that allow you to make money while you sleep. Continually reinvest money into your side business so you can generate new income streams.

Tip 4: Partner with others and reinvest.

Eventually, you may get to a point where you can’t do it or don’t want to do it on your own anymore. Reinvest your cash flow to grow your business. This way, you can keep building your side businesses or passive investments.

Be Like a Millionaire: Choose Your Strategy

Millionaires might have it all figured out — just like diversifying your investments, millionaires often rely on more than one way to make money.

Now that you’ve got the ideas, it’s up to you to choose the right route for you.  

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Domino's (DPZ) Outpaces Industry in the Past 6 Months: Here's Why

The restaurant industry has been grappling with traffic decline over the past six months. However, shares of Domino’s Pizza, Inc. DPZ have surged 22.2% in the same time frame, against ... Read more »

3 Traits Women Who Break the Glass Ceiling Have in Common

Over the last few years, we’ve seen more women than ever rise to the top and smash through barriers that might otherwise have held them back. According to Fortune, the ... Read more »

Medicare's Telehealth Experiment Could Be Here to Stay

Medicare beneficiaries used 63 times more telehealth services in 2020 than in 2019 after the federal government loosened Medicare’s strict telehealth rules due to the COVID-19 pandemic, according to a ... Read more »

$500 Coronavirus Stimulus Check Available. How to claim it

There is some good news for people waiting for more stimulus checks. Many Americans could get $500 in stimulus payment, but only if they live in one particular United States ... Read more »

2 Small-Cap Chip Stocks to Buy in December

Rising investments to address the global semiconductor chip shortage by scaling up production, and increasing demand for chips from several industries, should propel the semiconductor industry’s growth. So, we think ... Read more »

Here's Why Investors Should Retain McDonald's (MCD) Stock Now

McDonald’s Corporation MCD is benefiting from robust digitalization, comps growth, loyalty program, menu innovations and expansion efforts. Thereby, the company’s shares have gained 7.8% in the past six months, against ... Read more »

Marvell (MRVL) Q3 Earnings & Revenues Top Estimates, Up Y/Y

Marvell Technology MRVL reported splendid third-quarter fiscal 2022 results, wherein both earnings and revenues not only surpassed the respective Zacks Consensus Estimate but also improved significantly year over year.California-based Marvell ... Read more »

Penny Stocks To Buy For A Short Squeeze? 5 To Watch Now

One of the hottest trends in the stock market today has penny stock traders looking for short squeezes. Thanks to extensive breakouts from the likes of AMC Entertainment, GameStop, and ... Read more »

New Strong Buy Stocks for December 3rd

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: – Zacks Asbury Automotive Group, Inc. ABG: This automotive retailer has seen the Zacks Consensus Estimate ... Read more »

Is Clover Health a Good Buy Under $5?

Healthcare technology company Clover Health (CLOV) has been subject to several investigations since its stock market debut via an SPAC in January 2021. Its stock is currently trading below $5. ... Read more »

Ollie's Bargain (OLLI) Q3 Earnings & Sales Miss, Comps Down

Supply chain bottlenecks hurt Ollie’s Bargain Outlet Holdings, Inc.’s OLLI third-quarter fiscal 2021 performance. The company reported lower-than-expected results, wherein both the top and the bottom lines decreased year over ... Read more »

Glaxo (GSK), Vir COVID Drug Appears Effective Against Omicron

GlaxoSmithKline GSK and Vir Biotechnology VIR announced pre-clinical data, which demonstrated that their COVID-19 therapy, sotrovimab, maintains activity against key mutations in the spike protein of the new variant of ... Read more »

Twitter vs. Snap: Which Social Media Stock Is a Better Buy?

Twitter (TWTR) and Snap (SNAP) are two social media giants trading at a significant discount to Wall Street estimates. But which stock should you buy right now after the recent ... Read more »

Reasons to Hold O-I Glass (OI) Stock in Your Portfolio Now

O-I Glass, Inc. OI is poised to gain on the growing global preference for glass as the healthy, premium and sustainable packaging option for food and beverage. The company’s investment ... Read more »

Didi Stock Soars 14% Despite Delisting Plans In The U.S.

Didi Global Inc (NYSE:DIDI)’s stock surged in U.S. premarket trading on Friday, after the ride-sharing company from China had announced a possible delisting from the New York Stock Exchange. Didi ... Read more »

Tesla seeks court approval of win in engineer's defamation case

FILE PHOTO: Logo of the electric-vehicle maker Tesla is seen near a shopping complex in Beijing By Daniel Wiessner (Reuters) – Tesla Inc has asked a U.S. court to affirm ... Read more »

What Is Business Climate Change, and Are You Prepared for It?

The warning signs have been here for almost two years now. What has happened to business (and the world) in the past 18-plus months could never have been predicted — even in the ... Read more »

Save $600 on This Solar Generator for Your Home for Cyber Week

Entrepreneurs know they always have to have a plan. But when things don’t go according to that plan, you also have to be ready to adapt on the fly. Working ... Read more »

8 Critical Email Rules for Optimal Efficiency

Even though you have many other ways to communicate (e.g., Zoom, Teams, phone calls, text), email still dominates the workday. Thoroughly controlling your inbox will allow you to be more ... Read more »

How to Navigate Data Privacy Regulations When Deploying Enterprise Blockchain Solutions

As businesses in nearly every sector focus on digital transformation, more aim to incorporate enterprise blockchain technology into their operations. According to a Deloitte study, more than half of global ... Read more »

EFT, China's DEC sign $49 million deal to build solar plant in Bosnia

EFT’s 300 MW coal-fired power plant, the first and biggest private investment in the country’s energy sector by UK based Energy Financing Team (EFT), is seen in Stanari near Doboj ... Read more »

Home prices in Norway fell by 0.6% in November

Home prices in Norway fell by 0.6% in November. At the same time, a record number of homes were sold. “Home prices in Norway fell in November, and with falling ... Read more »

Elon Musk Sells More Than $1 Billion Worth of Tesla Shares After Twitter Poll Says He Should

According to regulatory filings dated on Thursday, Tesla CEO Elon Musk sold 934,091 shares of the car maker’s stock ⁠— equating to $1.01 billion. According to Bloomberg, the sales were meant to ... Read more »

Hackers Are Flooding Businesses' Receipt Printers With 'Anti-Work' Messages

Hackers are taking control of business receipt printers to circulate pro-labor messages, according to a report from Vice and posts on Reddit.  Screenshots posted on Reddit and Twitter reveal some ... Read more »

One in six not able to buy essential food, ONS survey finds

Some 43% of Brits said they saw less variety in shops. Photo: PA A majority of Brits saw their cost of living increase due to the pandemic and one in ... Read more »

You Got This: Why Running Your Own Business Doesn't Need to Be So Scary

At some point in the early days of entrepreneurial life, there are moments when it seems vital to ask whether the road taken was the right one — whether the ... Read more »

US Employers Added 210,000 Jobs in November, Less Than Half of Estimates

U.S. employers added a paltry 210,000 jobs in November, sharply below consensus forecasts of 550,000 and more than half as many as in October, though the underwhelming job creation numbers ... Read more »

Global Economy 'Collectively Holding Its Breath' Over Omnicron Variant, CEO Says

The omicron Covid-19 variant is causing some concern among European business owners as countries roll out their individual responses. As of Tuesday, there were 42 confirmed omicron variant cases in ... Read more »

Ebay UK sales boom in run up to Christmas as used items listings surge

Just under half a million people listed products to sell on eBay UK last week. Photo: Reuters Ebay (EBAY) UK saw a major surge in people listing preloved items on ... Read more »

Ford aims to be world's #2 electric vehicle maker within two years - COO

FILE PHOTO: Ford Motor Company headquarters in Cologne By Paul Lienert (Reuters) – Ford Motor Co expects to be the world's second largest electric vehicle manufacturer within two years, with ... Read more »

My first boss: British tea mixologist Krisi Smith

Krisi Smith, co-founder of Bird & Blend. Photo: Bird & Blend Before the age of 23, Krisi Smith had held 37 different job roles. Her employment status often resulted in ... Read more »

How to get the free at-home Covid tests promised by White House

CandyRetriever | iStock | Getty Images Tens of millions of Americans should soon have access to free at-home Covid tests. The White House made the announcement amid fears of a ... Read more »

5 Things Entrepreneurs Should Focus on During the Holidays

While food, sports, and tradition are wonderful parts of the holiday season, it’s also a very convenient time to take a pause, create special moments with loved ones, and reset. ... Read more »

Small Business Saturday 2021: How Londoners can help SMEs facing ‘really tough time'

Londoners are being urged to shop local to support independent businesses (PA Wire) Grassroots campaign Small Business Saturday is back for the ninth year in a row, and is set ... Read more »

Kensington and Chelsea tipped to lead UK property market in 2022 as overseas buyers return to London

The garden square at Wetherby Gardens Kensington (Winkworth) The return of overseas buyers means expensive central London houses should lead the British property market next year when it comes to ... Read more »

Britain's Ofgem appoints EDF to take on Zog Energy customers

World Nuclear Exhibition (WNE), the trade fair event for the global nuclear community in Villepinte LONDON (Reuters) – British energy regulator Ofgem has appointed EDF to take on the customers ... Read more »

When Amazon came to town: Swindon feels strain as new depot sucks up jobs

Photograph: Graeme Robertson/The Guardian Firm has hired 2,000 staff in a matter of months in Wiltshire town, with ripple effect on other businesses On an industrial estate outside Swindon, it’s ... Read more »

There's no reason why Ford shouldn't break above $20, trader says

Ford's fate looks rosy to Inside Edge Capital Management founder Todd Gordon. With shares of the automaker meeting resistance in the $20 range, “I see no reason” why they can't ... Read more »

3 Things Women Leaders Transitioning From Corporate Should Understand About Entrepreneurship

The financial security and freedom of entrepreneurship can be appealing for women business leaders. Each of us craves the ability to be in control of our life and what we ... Read more »

UK National Grid cancels electricity margin notice for Dec. 3

LONDON (Reuters) – Britain's National Grid has cancelled an electricity capacity market notice for 17.30 GMT on Friday, it made earlier in the day, it said on Friday. Under the ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic