Seven Unique Income Streams You Need Now To Maximize Your Earnings
Have you ever come across someone who seems to have complete financial freedom, and wonder how they got there—what their secrets are? You may feel that sense of total independence simply isn’t in the cards, but ask yourself—why can’t that be you? Bloom Investment Counsel’s Seven Unique Income Streams You Need Now to Maximize Your Earnings takes you through the seven unique streams of income that are at your disposal—so grab a pen and paper and your favourite beverage, and start taking notes to be well on your way to financial prosperity!
It’s exceedingly common to have one, or even a few streams of income, but halting at just a few can limit your financial growth substantially. This is why we’ve created this informational guide especially for you—because at Bloom, we are passionate about enabling clients to reach the next level in their financial journeys. We want to help you join the ranks of some of the most successful individuals and businesses. Perhaps you have excess capital in the bank from your professional endeavours, or maybe your business had a great year—if you’re letting that capital lie stagnant, you’re losing money. Creating multiple income steams allows you to mitigate your risk and protect your cash flow against a downturn in one specific income stream—for example, if your business’ industry experiences an unexpected hardship. Having multiple, diverse streams of income not only provides you with peace of mind, allowing you to further diversify and experiment with your supplemental capital—but it also gives you even more opportunities for expanding your wealth, and thereby, your legacy.
Over the next few weeks, we will be taking you through each of the seven income streams in detail in brief, user-friendly guides, walking you through the income streams of the average millionaire, and providing you with a comprehensive explanation of how you too can reap the benefits of multiple income streams. We will also show you how we can help you directly in achieving three of the seven streams of income, and how we can work with your advisors to help you attain the other four.
Ready to unlock the full potential of your capital through these seven streams of income? If so, keep reading and be sure to follow Bloom on LinkedIn, Twitter, Medium, and Reddit to be the first to know when a new guide is released! (Keep a close eye out for a BONUS income stream at the end of the series, that only a few can capitalize on!).
If you prefer to read this guide in PDF format, please click HERE.
How Many Streams of Income Do You Need to be a Millionaire?
Firstly, let’s dive into millionaires’ secrets to success. A recent study by the IRS showed that millionaires, on average, possess all seven of the income streams we are discussing here today—go figure! While it’s exceedingly common for individuals and businesses to hit the brakes after they’ve checked off some of the more well-known income streams, that’s not always where the most earning potential lies. Too often, people experience tunnel vision and remain passive, unable to expand their horizons into the remaining four inactive income streams. While some of the more common income streams you’ve likely heard of (like earned–for example, your salary, as well as interest, and dividend incomes) can have a significant payoff for many people, becoming limited to these three can pose an obstacle in the grand scheme of wealth building.
Do millionaires work harder than the rest of the population? It’s a question that many people ponder. While there are many hard working people in this world—millionaire or not, the truth is that many wealthy and successful people merely capitalize on the various income strategies available to them—but guess what? They’re available to you too!
How do they have the time to engage in all of these income streams? Well, the truth is that more than half of the income streams we will be discussing today don’t require you to lift a finger to continue to receive cash flow from them!
What Is the Difference Between Active and Inactive Income?
- In simple terms, inactive income is the money earned that requires little work, or no active involvement to generate ongoing capital—a common example is interest from an investment.
- In contrast, active income is the money that is received in exchange for performing a service—for example, the income you receive from your profession, or the money that is accumulated through selling a product.
Earned (salary), profit and capital gains incomes are forms of active income, while dividend, interest, rental, and royalty incomes are forms of inactive income.
What Are the Seven Different Types of Income Streams?
Let’s define what each of the income streams are, and let’s break them down. The seven different types of income streams are as follows. We will start out with discussing some of the income streams that you may not have heard of, and will also cover others that you may have heard of.
1. Rental Income
2. Earned Income
3. Income from Business Profits
4. Royalty Income
5. Dividend Income
6. Capital Gains Income
7. Interest Income
Plus…a BONUS income stream—to be announced!
Leveraging Multiple Income Streams
Once you start achieving additional income streams, you start to be afforded the eternally desirable luxury of time—extra income allows you the flexibility of putting less of this precious resource into your earned income stream—your profession. Once you can leverage this extra time, the possibilities become near infinite and you can truly push down on the accelerator, expanding your capital with exponential potentials. Once you have more time, here are just a few examples of what you can do:
- Write a book—amplify your income by attaining royalty income.
- Start a new business—strengthen your wealth by gaining profit income.
- Learn about and invest in real estate—fortify your earnings through lucrative rental income.
How Much Income Do You Need to Retire?
How much income you need to retire is a common question which many people ponder, but the truth is, there is no straight answer. We feel that the definition of retirement is retiring from the things you dislike doing. Here’s an exercise: write out a list of all of the things that you enjoy doing, and write out a list of all the things you dislike doing. Once you’ve delegated out all of the activities you don’t enjoy doing, congratulations—you’ve retired! The question you need to ask yourself is how much income you require to retire comfortably. This is highly dependent on your lifestyle and the cost of your expenses. In terms of the amount of income you require monthly, you’ll need to calculate and manage your personal costs, which occurs through a cash flow analysis. Reference our recent Cash Flow Guide HERE—be sure to look closely, because within the guide is a free cash flow template for your download!
We hope you enjoyed reading Seven Unique Income Streams You Need Now to Maximize Your Earnings. Be sure to follow Bloom Investment Counsel on LinkedIn, Twitter, Medium, and Reddit to be the first to know when our next income stream guide is released—we’re taking a deep dive into Rental Income next!
Contact Bloom Today
At Bloom, our goal is to help ensure your money is working for you, and not the other way around.
Bloom Investment Counsel is pleased to assist wealthy individuals, foundations, corporations, institutions and trusts in achieving financial independence by drawing upon a myriad of income strategies—skillfully capitalizing on the wealth of returns produced in the form of dividends, capital gains, and interest income. Our methodology has worked for countless clients—we proudly have over 35 years of experience under our belts, and have managed over $2.5 billion in assets. Further to this, we work with your advisors and partners to help you obtain the other four possible income streams—because at Bloom, we believe you should never put all of your eggs in one basket.
Contact Bloom at firstname.lastname@example.org or visit us at www.bloominvestmentcounsel.com to learn more about the ways in which you can experience financial freedom with multiple, steady, and reliable income streams.