All Millionaires follow these 7 streams of Income

What's up everybody! I'm James, and welcome to the Wealth Whisperer Wave. 🌊 I have recently chanced upon this information and would like to share it to my Wealth Wave….

Wealthy people don't have just one stream of income or two or even three; they have seven different streams of income.

Seven full income streams? how do they do it?

The good news is you don't need to be a multi-millionaire to start taking advantage of this and start creating multiple different streams of income. But you should also understand that wealthy people didn't become wealthy because they had seven different streams of income; they became wealthy because they mastered one first, and then they funneled this money into a second, and then they mastered that, and then they followed that into a third. That being said, you still need to understand what these different types of income are; this way, you can plan for it because we're never taught these things in school. So let's go over the seven streams of income that wealthy people have.

Income Stream 1

The first income stream that wealthy people have is your salary income. Everybody knows what this is. When I was growing up, I thought this was the only type of income that was out there, which is why I thought the best thing you could do was become a doctor because when you're a doctor, you make a lot of money for every hour that you work. But wealthy people actually hate salary income, which brings me to number two: business profit income.

Business owners think very differently than employees because employees want the biggest salary possible while business owners want the smallest salary possible. And you'll see why.

Let's say I start a business where I sell fans and this year I made five hundred thousand dollars in revenue from selling fans. Now, all this five hundred thousand dollars isn't profit because I have business expenses. I have to pay for marketing, I have to pay for my rent, I have to pay for my employees, and I have to pay for my mugs. Let's say this all costs $300,000. So that's right about there, leaving me with $200,000 in my business. But I haven't paid myself yet. I am the CEO of my mug business, and I work in the business all day long, so I deserve a pretty good salary. And I have $200,000 after my business expenses, so let's say that I pay myself a salary of $100,000. That looks about right. So now I've paid myself and all my expenses, and I still have another hundred thousand dollars left in the business. This $100,000 that's left after all these expenses is the business profit. That means that if I wanted to go out and hire somebody else to run the business as the CEO, I would pay them this $100,000 because they're gonna take over my role as a CEO and make sure the business runs properly. And then I can go travel the world and fan myself on different beaches. But this hundred thousand dollars will continue to come into my pocket because this profit is what you get for owning the business, not for working in it.

Income Stream 2

The best part here is when I take home this one hundred thousand dollars of profit and this one hundred thousand dollars of salary, I could pay less taxes on this one hundred thousand dollars of profit than I do on this one hundred thousand dollars of salary because business owners get tax breaks on their profit while employees do not on their salary.

Which is why business owners and wealthy people would rather take a much smaller salary and a larger business profit because that comes with bigger tax breaks. Remember, it's not how much money you make that matters; it's how much money you get to keep. And this is why wealthy people would rather have a smaller salary.

Income Stream 3

The third type of income is capital gains income. Let's say you have $10,000 sitting in your savings account doing nothing except collecting dust. And that's when your friend Bunty calls you up from nowhere and he says, "Hey, Cosplay, what's going on man? Have you heard of this new Amazon thing? We should get in on this." So you take your ten thousand dollars you had sitting in your savings account and instead of using it to go buy things on Amazon, you use it to go buy ownership, or stock, in the Amazon company. And then you forget about it. Ten years later, you open up your stock brokerage account and you're like, "Wow, people have really been loving this Amazon thing," because now your $10,000 investment is now worth a hundred thousand dollars. This is called capital gains income because you are using your money to buy an investment and then you're taking this investment and selling it for a profit. And you can do this on the side.

Income Stream 4

But my favorite type of investment income is cash flow investment income. In that example where you own the Amazon stock, you don't actually get to make that $100,000 and put it in your pocket until you sell your stock. And at the time we're recording this video, Amazon doesn't pay any dividends. So you don't get to make any money unless you sell your investment. Cash flow income or passive income is the money you make for owning an investment, and then you get checks every single year just for owning the investments. And you make this money without having to sell your investment. So if you own a dividend-paying company like McDonald's, now, yeah, you still hope that your investment's gonna go up in value, but whether McDonald's goes up or down, you're still gonna get paid every three months with a dividend check because McDonald's pays dividends to their investors. And you don't gotta sell your McDonald's stock to get paid.

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Income Stream 5

Income stream number five is interest income. Interest is the money that you make for lending your money to somebody else, and then the extra money they have to pay you back is their interest income. There are a few ways that you can get this interest income. When you put your money in your savings account or CD, now you're giving your bank the right to go out and lend your money to somebody else, and then your bank will pay you a small percentage, a very small percentage, of their profit from interest. The alternative is you can be a private money lender. That's where you lend your money directly to people who want to buy something like real estate, and then they will pay you interest directly. Now you become the bank, and in exchange, you get higher interest.

Income Stream 6

The sixth stream of income is royalty income. Royalty income is when you put in your work to create a certain thing, and then this thing that you created once continues to pay you for years into the future. Twenty years ago, if you wanted to generate this kind of royalty income, you had to either write a book or create technology and then license it to a big company. But nowadays, it's so much more accessible to create this royalty income. I'll give you an example. Can you guess what it is? It's right here in front of you: YouTube. If you watch any youtube videos made from five years ago, the video owner will still get paid for that today through advertising revenue that they split with YouTube. It's not a lot of money; they make like one penny per view. But it's still this royalty income.

Income Stream 7

Number seven is being financially smart income. Okay, I kind of cheated a little bit on this one because this is an income you get to keep in your pocket. The majority of Americans are drowning in consumer debt with credit card debt, auto loan debt, and lines of credit. This debt is not making anybody richer, except maybe your bank. Wealthy people don't do that. When wealthy people use credit cards, they use it smartly. This way, they pay off their balance every single month. This way, at the end of the year, they don't get a fat credit card bill. They're taking a fat credit card cash back bonus, which is money they can use to invest more. And the only time a wealthy person will use debt is if they're gonna use it to buy things that will make them richer.

So keep that interest money in your wallet. This way, you can use that money to maybe generate you more interest money.

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