Personal Financial Tips

7 Must Have Streams of Income to Build Wealth | Passive Income Streams

Everyone looks for a must have streams of income to build wealth. Earning money without having to work hard for it – who wouldn’t want that? Most people dream of getting rich quickly and achieving financial independence. But very few succeed in this step.

Anyone who thinks they can earn a lot of Wealth in the shortest possible time without any effort will be disappointed because without lifting a finger, there is simply no money to be made.

However, if you have patience and want to be financially independent at some point, having diverse streams of income to build Wealth is just the thing for you. With this, you can ideally secure yourself financially for the future. In this guide, I will share 7 must have streams of income to build wealth.

To this end, we have highlighted 7 such streams which can be a good source of income, especially for founders. Self-employed people who want to build up an additional income and their primary job can also benefit from this because even with just a few hours per week, you can generate decent extra income to build Wealth.

7 Must Have Streams of Income to Build Wealth

7 Must Have Streams of Income to Build Wealth

Financial freedom is a state that very few achieve. That’s why we’re introducing you to 7 Streams of Income you can use to build Wealth. Come along!

Online trading in physical products

E-commerce is nothing more than the world’s best-known business model, trade – just online. You offer products that you either obtain directly from a manufacturer or that you have developed yourself online for sale to the world.

There are various possibilities. In addition to your online shop and dropshipping, you can use platforms such as eBay and Amazon to sell the products. Selling your products on Amazon has proven to be the most long-term way. 

In addition to the high reach, Amazon has another significant advantage over other e-commerce models: its fulfillment service Amazon FBA (Fulfillment by Amazon). When you sell products through FBA, Amazon takes care of the storage, packaging, and shipping of your products via Prime, customer support, and returns management.

So you don’t need to worry about anything logistically, except that the products arrive at the Amazon warehouse on time. 

Sell video courses, e-books

In addition to physical products, you can also offer digital products to the world for sale and thus build Wealth. The most common ways to do this are by creating e-books and video courses. 

E-books are books in digital form that you can offer and sell on marketplaces such as Amazon. The advantage is that you can only create an e-book once and then sell it indefinitely. 

One way to offer books for sale online is Amazon’s Kindle program. Here you upload your finished book, and then it is available to users of the online giant to buy. You receive a sales commission of 70% of the book’s sales price for each unit sold. Here, too, you benefit from the enormous reach and user confidence in the Amazon platform.

Rental properties

Real estate or rental properties are a conservative way of building up assets and Wealth at the same time. Rental properties offer the great advantage of generating constant income if you rent them out successfully.

In addition, they usually have a low administrative burden. There is often the misconception that a high level of start-up capital is necessary to invest in real estate or rental properties. 

Garages, for example, are good entry-level properties because, depending on the location, they can usually be purchased for a few hundred dollars and enable rental returns of 40 to 50%.

If you have more start-up capital, apartments or houses are a good investment. These also generate a passive income stream after successful rental.

YouTube videos

There is hardly a topic on which a video does not currently exist on YouTube, and rightly so because YouTube is also an excellent way of building income.

For example, if you have a craft or other skill that you’d like to help others with, you can shoot and upload a video about it. You earn money by running ads before the video or by displaying an advertising banner during the video.

Stock trading

If we look at the wealthiest people globally, we don’t take too many risks to say that stocks played a significant role in the multiplication of their bank accounts. Furthermore, with sufficient financial resources, stocks are arguably the most common way to build wealth and assets.

There are a few things to keep in mind here and to understand what you are doing. Even the most successful campaign investor Warren Buffett said: “Risk comes from not knowing what you’re doing.” And that’s precisely how it is. Before investing in stocks, you should understand how stocks trade, how prices come up, and how you can benefit from them. 

Stocks are a long-term investment. There is certainly the possibility of earning money with dividends. But it would help if you first reinvested your profits to build up long-term Wealth. By investing in stocks, returns of 3 to 7% are pretty realistic. 

The higher the possible return, the higher the risk and the more frequent fluctuations in the value of the stocks occur. To not become too dependent on the economic situation of individual companies, it is advisable to diversify your investments right from the start.

To do this, check out specialized blogs and learn from the world’s most successful investors by studying and understanding their actions. 

Affiliate Marketing

The principle behind affiliate marketing is the successful placement of customers, leads, or sales for another company. For every successful referral, the affiliate receives, in this case, you, a predetermined fee.

This can be specifically for you via a user-specific link of the product provider. The procedure is quite simple: You choose an attractive product through an affiliate network that you want to advertise. An ordering link is now made available for precisely this product.

If someone orders the product via this link, you will receive a commission for it. To reach as many people as possible, you need a platform that potential customers regularly visit. Instagram, YouTube, or your blog or niche site is particularly suitable for this.

Once you have built a specific reach, visitors will use the links. The reward might be anything from 4 to 8%, so you’ll need a lot of website visitors to make a lot of money.

But here, too, there is work in creating videos or a blog at the beginning. Only when you have viewers or blog articles that generate many visitors on Google will sales be made via the affiliate links. Even if you theoretically “earn money, you need patience, preparatory work, and continuously new content to build Wealth with affiliate marketing. 

Crowdinvesting & Crowdlending

Crowd investing and crowdlending are also streamed to Build wealth. With equity crowdfunding, you become a partner in a company for a particular time, in which you invest a certain amount of capital.

At the end or during the period, you will then receive interest. On the other hand, Crowdlending means that entrepreneurs or private individuals collect many small amounts of money from a mass of people.

That’s cool, as this type of income increases over time. And this is how some of the top 1 percent of the wealthiest people in America made income in 2017. A study also shows that earnings from other side hustles bring in at least $500. This is usually more for 36 percent of 86 percent of the study’s participants.

Furthermore, the solo 401(k) is excellent because you can stash up to 100 percent of your earnings into the account. This will also aid you to meet up to the annual maximum too.  

Meanwhile, you may only donate 25% of your income to a SEP-IRA. Furthermore, the solitary 401(k) permits you to contribute up to 25% of your revenues to the firm.

Frequently Asked Questions

What are the seven streams of income?

The seven streams of income are:

  • Online trading in physical products
  • Selling video courses, e-books
  • Rental properties
  • YouTube videos
  • Stock trading
  • Affiliate Marketing
  • Crowd investing & crowdlending

How do you make seven streams of income?

You can make seven streams of income through the following options:

  • Dividend income through stocks you own.
  • Earning income from diverse paychecks.
  • Getting rents from real estate rental.
  • Generating royalty from the sale of permission to use an item you created. For instance, depending on your business, you may provide a license to utilize a specific brand you made for a premium ranging from 4% to 6%.
  • Selling appreciated assets to get capital gains.
  • Earning profits from your business.
  • Making gains through investment diversification.

How many streams of income do you need to be rich?

You must have at least seven streams of income to be rich.

What are the eight streams of income?

The eight streams of income are:

  • Online trading in physical products
  • Sell video courses, e-books
  • Rental properties
  • YouTube videos
  • Stock trading
  • Affiliate Marketing
  • Crowd investing & crowdlending

Loans from private individuals! In this case, downturns may make strong private lenders even more likely to fail. As a result, if COVID-19 proceeds to devalue the market, these debts may default at greater percentages, and with the Monetary Authority aiming for 2% inflation, you’re likely to lose money to inflation, at least in the near term.

How can I make $1000 a month in passive income?

You can make $1000 a month in passive income by investing at least $240,000 in a profitable business.

Conclusion

In conclusion, having diverse income streams can raise your standard of living and help you build Wealth. To this end, the ideas in this article will help you take the plunge and generate more money without disrupting your lifestyle.