Why You Might Want 7 Income Streams on Your Journey to Wealth

Visualizing Your Financial Future

Have you ever taken a moment to truly visualize where you want to be financially? Picture it—your ideal lifestyle, the freedom to make choices without worrying about money, the ability to provide for your family without stress. Now, ask yourself: Is your current income getting you closer to that vision?

For most people, the answer is no. That’s because relying on a single income stream—like a 9-to-5 job—makes it difficult to achieve financial freedom. If you truly want to create wealth, you need to start thinking about multiple income streams.

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The Wealthy Have Multiple Streams of Income

You might look at people like Jeff Bezos or Bill Gates and think they built their wealth solely through Amazon or Microsoft. But in reality, the ultra-wealthy understand a key principle: it takes money to make money—and they put that money to work through multiple income streams.

Most wealthy individuals have around seven streams of income. Why? Because financial diversification protects them. If one income source slows down, the others continue to generate wealth. This is how they maintain financial security even during economic downturns.

Take the COVID-19 pandemic, for example. If someone only relied on a single income source—like a brick-and-mortar business or real estate—they likely faced serious financial difficulties. But those with multiple income streams had a safety net.

Diversification: Not Just for Investing

You’ve probably heard the term “diversification” when talking about investing—like not putting all your money into one stock. But diversification is just as crucial when it comes to income. Relying on one paycheck is risky.

By developing different types of income streams, you create financial security. The key is to diversify your income sources, so if one area struggles, others can support you.

Different Types of Income Streams

There are countless ways to earn income, but they generally fall into two categories: active income and passive income.

Active Income

Active income is money you earn in exchange for your time and effort. This includes:

• A 9-to-5 job

• Freelancing (copywriting, graphic design, virtual assistance)

• Rideshare driving (Uber, Lyft)

• Teaching or tutoring

• Consulting

These are great ways to make money, but they require constant work. If you stop working, the income stops, too.

Passive Income

Passive income, on the other hand, allows you to earn money even when you’re not actively working. It often requires an upfront investment of time or money but continues to pay over time with limited additional effort. But passive income does NOT mean make money with 0 effort. Examples include:

• Stock dividends and investments

• Rental properties

• Selling digital products (e-books, courses, printables)

• Licensing music or photography

The Balance Between Active and Passive Income

If you create multiple streams of only active income, you’re essentially signing up for several full-time jobs, which is exhausting and unsustainable. That’s why it’s important to incorporate passive income streams into your financial plan.

When you stop trading time for money, you open the door to true financial freedom. Passive income gives you time flexibility while still providing financial security.

Not All Businesses Provide Time Freedom

Many people believe that starting a business will automatically give them freedom. But this isn’t always true.

If your business requires you to be present constantly—like running a restaurant or law firm—you’re still trading time for money. The good news? The internet has opened the door to business models that allow for passive income and location independence.

The 7 Income Streams of the Wealthy

1. Earned income: money earned through your job

2. Profit or business income: money you make for selling a product or service

3. Royalty income: money you make from making/designing/owning something unique and charging people or businesses to use it

4. Rental income: money you make from owning property and charging people to use it

5. Interest income: money you make from lending your money out

6. Capital gains income: money you make from buying and selling an asset (stock)

7. Dividend income: money you make from dividend payouts

These are the 7 streams that the wealthy tend to have. You don't need to incorporate all of them to be successful, but 65% of millionaires have at least 3 streams of income. And now instead of working towards having 7 different side hustles, you have a better idea of some more passive streams to get into.

Start Planning Your Seven Income Streams

Right now, seven income streams might sound overwhelming, but it’s entirely possible. The trick is to start one, work on it until its successful, and then bring on another one and do the same. Keep going until you've hit your goals. Start by brainstorming:

• What skills and interests do you already have?

• What income streams align with your strengths and personality?

• How can you mix active and passive income for long-term financial security?

Could you use 101 income stream ideas to help you get started? Download my free guide today! It’s packed with ideas to inspire you and help you take your first step toward financial independence.