How many alternative sources of income should you have?

I talk a lot about having multiple streams of income. I believe it’s the most efficient way to build wealth–but I’m not the only one. Researchers have even pinpointed a statistic: millionaires, on average, have not just one, but seven streams of income.

Unfortunately, I couldn’t find too much additional information online. However, from my own research, I’ve landed on a few ideas that certainly make the most sense.

How Many Different Income Streams Should You Have?

Arrow

Yes, the streams may eventually make the millionaire, but it’s also true that the millionaire understands the importance of multiple income streams–without them.

Do the Income Streams Make the Millionaire, or Is It the Other Way Around?

After all, he or she may never have broken the million dollar mark. So, he or she continues to increase their streams of income.

As with all investments, I believe that it makes the most sense to diversify your streams of income. That is, up to a point. If you’re finding a category that works for you, then go for it. 

Are These Seven Individual Categories of Streams, or Are They All from the Same Category?

While there’s no perfect blueprint for what these income streams should be, here are some of the most common types of streams.

Different Streams of Income

1. Business Income  2. Earned Income 3. Interest Income 4. Dividend Income 5. Rental Income

SWIPE UP NOW TO READ MORE

7 Streams of Income: The Millionaire’s Secret

MORE STORIES

Why Creating Additional Income Streams is No Longer Optional