8 income streams Ideas: How to Become a Millionaire in 2020.
Millionaire become rich because they have multiple sources of income and that helps them earn more and reach financial freedom. If you are looking for a way how you can create a new income source and find new ideas to earn more money, then you are in the right place. Today I’ll show you how you can create a new income source and give ideas about it.
1. Earned Income
Meaning Income from working a job. This is the typical income many people have. But only a few become rich because of the day job and its hard to become rich if this is your only source of income. But This is a good start for everyone because this helps you to earn extra income to start a business or maybe invest.
What is Earn Income? Based from investinganswers.com
Earned income is an IRS term for income that is obtained by participating in a business or trade. Earned income typically includes salaries and bonuses, wages, commissions, and tips. Union strike benefits are also considered earned income, as are long-term disability benefits received prior to minimum retirement age.
2. Profit Income
This is an income from buying and selling. Another great business ideas to have a profit income streams is to start a buy and sell business for fashion clothes, automobiles like cars, truck or construction machines, paintings, gadgets like cellphone and the best to buy hold and sell is real estate. Real Estate is the best income streams of all because today there is a big demand in housing and commercial or office establishment and if you buy a lot that is in a good location, your lot price can increase from 20-60% or even higher in just a few years. Then now you can sell it and repeat the process.
Many people say you need to have a big amount of capital to have a real estate property but actually no. You can start small by buying small portion of land or small portion of property or old houses and renovate it then you can sell it now for a higher price or maybe you can use it for Airbnb or rent it out to gain yearly income from it.
What is profit income? Based on Investopedia.
Profit Income, typically called net profit or the bottom line, is the amount of income that remains after accounting for all expenses, debts, additional income streams and operating costs.
3. Interest Gains
Income from lending money or lending important items. This usually is how banks and insurance companies earn money. This is another great way to increase your income. But make sure you have an insurance policy to protect you from people who run away from paying you from borrow money from you. But there are many websites or companies out there who will help you and do the rest for you, all you need to do is just lend your money and wait for the interest gains from lending your money. There is also the business where you can lend some of your items or property like cars or expensive things and gain from money interest from lending it in contract time.
What is Interest gains? Based on Accountingtools
Interest income is the amount of interest that has been earned during a specific time period. This amount can be compared to the investment balance to estimate the return on investment that a business is generating.
4. Capital Gains
Assets gain increasing in value. This Income can be your Car, Property in Real Estate, or Capital gains from gaining or obtaining a business or a company or a website and increasing it value and then you either sell it or Gain more money from it. This another great idea of the source of income and for sure this can help you become a millionaire but you need a longer time here.
What is Capital Gain? Based on Investopedia.
Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.
5. Dividend Income
Income from owning stocks. This is the safest and easiest way to earn an income and it is because you just need to study the best companies in the stock market and if you believe on them that they can grow more and become a bigger company then you just need to hold for a longer time and earn from dividends and you can also sell your stock to earn more. But my tip for you as a beginner in starting the stock market, make sure you are a smarter and long term investor. But if you are good at day trading then you can become a millionaire faster but have a greater chance of failing.
What is Dividend Income? Based on Investopedia.
Dividend income is paid out of the profits of a corporation to the stockholders. It is considered income for that tax year rather than a capital gain. However, the U.S. federal government taxes qualified dividends as capital gains instead of income.
6. Rental Income
Income from renting a property. This is the most 2nd basic source of income-you can attain besides Earned income which is your day job. You can find cheaper rental property out there and then rent it out and you can turn it into a vacation rental or day rental like Airbnb or other property management where you earn from renting it out by other pole and now somebody is paying for your rent and still earning from it. That’s a real estate hack that people use to make money faster. There is a lot of chance you can become a millionaire from doing this every year and gaining more rental properties.
What is Rental income? Based on Business Dictionary.
Rental income is the amount of money collected by a landlord from a tenant or group of tenants for using a particular space. Most businesses that lack the funds or credit standing to purchase their premises will have to budget for the cost of paying rental income on a periodic basis that is typically done monthly.
7. Royalty Income
Income from a good idea or having a digital property license like an album song, movie, ebook, audiobook, online course or similar to that digital property. If you want to have a royalty income then you can create one digital product today and earn from it by promoting it into social media or commerce websites like amazon which is free, eBay or more platforms. You can do Paid Ads or Organic traffic by Search engine optimization in Google Search. This is what Millionaire do and this helps them earn more money without working or having a passive income continuously. This can be any trademark you have or branding you have or created.
What is Royalty income? Based on Us Legal.
Royalty income is a payment received for the use and exploitation of artistic or literary works, patents and mineral rights. Royalty income is generally of two types; royalties for the use of copyrights, trademarks, and patents, and royalties from the extraction of oil, gas, or minerals.
8. Residual Income
When you continue to get paid after the work is done. This is similar to royalty income which you earned money from creating something like digital or physical product and still earning from it. It can also be like if you create a food park you’ll earn from their rents or like website platform you can earn from Advertisement or other paid ads from promoting a product or a service or brand name.
So that’s all the 8 income source millionaires have and also a great business idea for having new sources of income. If you learn please Share this to your friend and connect with our social media out there for more.