What are the 7 streams of income?

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By Nick

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Looking to achieve financial freedom? According to Business Insider, there are seven streams of income that can help you get there. Earned income is the most common, but don’t forget about capital gains, interest income, dividend income, rental income, business income, and royalty income. Diversify your income streams and invest wisely to create both passive and active income. With the right approach, you can become wealthy and achieve your financial goals.

The 7 Streams of Income to Get Rich

When it comes to achieving financial freedom, there are many different ways to make money. Most people rely on earned income, which is the money they receive through their employment. However, there are many other streams of income that can help you get rich. In this article, we will explore the seven streams of income that can help you achieve financial freedom.

Earned Income

Earned income is the most common and traditional form of income that most people receive through their employment. This is the money you earn from your job or career. It can come in the form of a salary, hourly wage, or commission. The downside of earned income is that it is limited by the number of hours you can work in a day, week, or month.

Capital Gains

Capital gains are the profits you make from selling an asset, such as stocks, real estate, or a business. This type of income is not recurring, but it can be substantial if you make smart investments. The key to capital gains is to buy low and sell high.

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Interest Income

Interest income is the money you earn from lending money, such as through bonds, savings accounts, or peer-to-peer lending platforms. This type of income is passive, meaning you do not have to actively work for it. However, the returns are usually low compared to other streams of income.

Dividend Income

Dividend income is the money you receive from owning stocks that pay dividends. This type of income is passive, but it requires you to invest in dividend-paying stocks. The returns can be substantial if you choose the right stocks.

Rental Income

Rental income is the money you earn from owning and renting out real estate, such as apartments, houses, or commercial properties. This type of income is passive, but it requires you to invest in real estate and manage the properties. The returns can be substantial if you choose the right properties and manage them well.

Business Income

Business income is the money you earn from owning and operating a business. This type of income can be active or passive, depending on your level of involvement in the business. The key to business income is to create a profitable business model and scale it.

Royalty Income

Royalty income is the money you earn from licensing your intellectual property, such as patents, trademarks, or copyrights. This type of income is passive, but it requires you to create something of value that can be licensed. The returns can be substantial if you have valuable intellectual property.

In conclusion, there are many different streams of income that can help you achieve financial freedom. Earned income is the most common and traditional form of income, but it is limited by the number of hours you can work. The other streams of income, such as capital gains, interest income, dividend income, rental income, business income, and royalty income, can provide passive or active income streams that can help you get rich. The key is to diversify your income streams and invest wisely.

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