Apparently, millionaires frequently have Streams of Income for Passive Wealth. Here’s how to protect yours:
If you’ve recently read a lot about wealth, you’ve definitely heard that many billionaires have seven sources of income. Indeed, the Bible advises investing in seven different businesses. Having a variety of sources of income is crucial, but it doesn’t imply the advice given on the issue is actually useful.
If you’ve recently read a lot about wealth, you’ve definitely heard that many billionaires have seven sources of income. Indeed, the Bible advises investing in seven different businesses. Having a variety of sources of income is crucial, but it doesn’t imply the advice given on the issue is actually useful.
You’ve undoubtedly heard that many billionaires have seven sources of income if you’ve recently read a lot about wealth. The Bible does recommend making investments in seven different types of companies. Having a range of income sources is important, but it does not mean the advice provided on the subject is actually helpful.
1. Develop a business strategy to create an active income
You need a way to generate money to invest. As wages aren’t rising at the rate of inflation, I suggest doing this through a business rather than a job. This should be an actual business, not a side hustle. You will get side hustle results if you have a side hustle mindset.
On the other hand, you don’t want to quit your job before you can afford to do so with the income generated by your business. So you will need to find something that you can scale but that, in the beginning, you can do in your spare time. You also want to find something you can eventually own without needing to work in the business. This means that there must be a way for employees or contractors to take over the work you will initially be doing yourself.
This will allow you to sell the business in the future or keep it as a source of passive income and move on to a new business. An example of this type of business in the property industry would be deal sourcing. Deal sourcing is finding property deals and then selling the information to investors. You can charge a few thousand dollars per deal. Over time, you can hire staff to take over the day-to-day and turn it into a passive income source.
2. Develop an investment strategy to create passive income
The next thing you need to do is invest your money. You need to find assets to buy that pay you to hold them. This will become your source of passive income. This will need to be a reasonably conservative, time-tested investment that will protect your money long-term.
This will be your primary investment strategy, so it isn’t something that you want to be changing every month. Never buy luxuries with your active income; that is for essentials and investing. You can use the money from your passive income source to reinvest and buy luxuries.
Eventually, you can live fully off your passive income and invest all your business profits into your investment strategy and back into your business. This will place you in an excellent position to diversify into five new income streams to make the seven. An excellent example of a property investment strategy that can generate passive income would be buying large houses and renting them out by the room.
You will need to put management in place, so you don’t need to deal with tenants yourself. Once you have several houses, you may also need to hire more managers to manage your leadership and ensure the entire operation is passive.
3. Diversify based on your niche
At this point, you only have two streams of income: business and investment. Now is the time to create five more. These should be based on your industry for the most part. Don’t try and go too far outside of your area of expertise. If you’re in the cryptocurrency niche, suddenly writing a cookbook probably isn’t the right move.
You want to think about ways to expand within your niche. Some examples of this might be: writing a book about what you do and how you do it, creating a course; starting a new business that complements your existing one; angel investing in startups within your space; or buying companies you can integrate into your existing structures. If you follow this formula, I believe you can and will succeed!
