7 STREAMS OF INCOME OF MILLIONAIRES

but I have to warn you to read to the end where I reveal the single biggest secret to actually becoming a millionaire....

1. Earned Income - Money that you earn by doing something. For e.g. the money that you make in your job, the salary you get by working for someone else.

2. Profit - Money that you earn by selling something for more than it costs you to make. For e.g. Businesses selling their goods at a profit, whether at the retail or wholesale level, as distributors or manufacturers.

3. Interest - Money you get as a result of lending your money to someone else to use, e.g. putting it in the bank, lending it to the government in the form of buying Treasury Bills etc.

4. Dividend Income - Money that you get as a return on shares of a company you own. For e.g. the dividend that most companies announce at the year end. Typically you will have to own shares to get dividends.

5. Rental Income - Money that you get as a result of renting out an asset that you have. For e.g. This will be a house, or a building.

6. Capital Gains - Money that you get as a result of increase in value of an asset that you own. For e.g. when you buy shares at $10 and sell them at $11 - the $1 is capital gains, or if you buy your house for $200,000 and sell it for $220,000 the $20,000 is your capital gain.

7. Royalties - Money you get as a result of letting someone use your products, ideas, or processes. They make all the revenues, they do all the hard work and you get a small percentage of what ever they earn. For e.g. if you have a Subway Franchise - the royalty you send to Subway for using their processes, their logo, and marketing etc.

But the truth about how millionaires make their millions is a little different from what most of us imagine.

Most millionaire won't have all of these 7 income streams - in fact most of them wont even have 1 income stream. They will have a fraction of 1 of the income streams mentioned here. For e.g.

Warren Buffet is a Billionaire - but he doesn't make most of his money from all 7 of them. In fact he became a millionaire by using income stream 6 - Capital Gains.

But he didn't get in to capital gains on everything - but specialized on a very small thing, Capital Gains of companies in the stock market.

Then by constantly honing his skills in valuing companies and investing in them - he was able to become a millionaire, and then a billionaire.

So focus on what you can do right now from one of these income streams. Then become the best you can in a small niche in that income stream. The more you can do this the better you will become and the faster you will become a millionaire.