What Are The  7 Streams of Income?

Have you ever heard or read somewhere that the average millionaire has 7 streams of income? It’s one of the more common statements when it comes to accumulating wealth and how wealthy individuals reached this status. 

Passive And Active Income Streams

Active income is where you work for someone or provide specific services and you are paid for that work. Passive income is where you are generating income without necessarily always doing work. 

What Are The 7 Streams of Income?

Otherwise known as your salary or typical monthly income from your primary job. Earned income could be based on an hourly rate alongside bonuses, commissions and more.

1. Earned Income

What Are The 7 Streams of Income?

Alongside earned income, you may receive extra income from businesses you have set up. These are otherwise known as your side hustles, and may be made up from just one source or could be multiple.

2. Business Income

What Are The 7 Streams of Income?

Find out your interest rate by checking your bank statements. If you have funded any loans, you are also likely to be eligible for interest as the principal amount is repaid. 

3. Interest Income

What Are The 7 Streams of Income?

The stocks and shares you invest in may yield dividends, or you be paid via dividend if it fits with your company structure. Dividends are more commonly known as a share of the profits.

4. Dividend Income

Swipe up now for more  financial tips!