Are You Ready To Attain Real Wealth?

Let’s face it: multiple streams of income is the only way to build wealth. I know we’ve all heard that the average millionaire has around 7 streams of income,  but the reality of it is, unless you’re a superstar athlete or a world renowned artist, multiple income streams is the only way to make it. And by make it, I mean stop trading your time for money and really enjoy your life.  Maybe you won’t have 7, but at at least three or four will put you ahead. Whether you’re an entrepreneur or you work in corporate America, everyone should have more than one source of income. I’m on income stream number 3 and by this time next year, I plan to have another two in my portfolio. Have you ever stopped to consider what those income streams might be? Are you ready to get knowledge on how to start maximizing your wealth and living a comfortable life? Do you wish you understood how other people are able to pass down wealth to their children and grandchildren? Keep reading.

When I was younger, I thought that most wealthy people had one particular job, product, or service, that amassed them a great deal of wealth. I thought they forged a career path that yielded an extremely high salary and they saved their money until they became millionaires. I had heard a bit about investing, stocks and bonds, but that’s about as far as my knowledge about finances went. Like many African Americans, generational wealth was not passed down to me and neither was financial literacy. While my mother and father both have great careers, make a decent living, and provided a great life for me and my siblings, they never scratched the surface of the kind of wealth I’m working to see on my lifetime. When I got into corporate America and saw the disadvantages that most minorities have in the finances and wealth department, I knew that I had to do my own research and take the necessary steps to set myself and my daughter up for success.

Over the last few years, I have read many financial literacy books, listened to a few podcasts, and read a ton of blogs on the different streams of income. I want to share these with you all in hopes that it will spark your interest in also taking the first step to bettering your financial state. Please note that I am not a financial advisor. I repeat, I am not a financial advisor! I am simply sharing information that I found to be helpful for me. But rest assured, I’ll be sharing my financial advisor’s contact info towards the end of this blog post. Here are 7 streams of income that most millionaires have:

  1. Earned Income
    • Earned Income is the most popular income stream. It is the money that you earn by doing something or by spending your time. It is the money that you earn as an entrepreneur for selling a product or a service, or the salary you earn by working for someone else. If you have three jobs, they all fall under this category, so those three jobs are still one income source. Depending solely on earned income is where your quality of life will suffer the most. Depending solely on earned income can lead to no growth or financial gain because this is where you will be trading your time for money. My goal is to not spend the next 20 years sacrificing my time for money. So, while it is great to have earned income, don’t get comfortable and stop at this one source. Even if you make $100k a year, this should not be your only source of income.
  2. Profit Income
    • Profit income is money that you earn by selling something for more than it costs you to make.  Businesses selling their goods at a profit, whether at the retail or wholesale level. For example, a hair stylist doing hair would be considered earned income. But if that hair stylist decides to start selling hair weave in addition to doing hair, that would be considered profit income. If I decided to put all of my delicious plant based recipes into an e-book and sell it for a small price (shameless plug), that wold be considered profit gain. Most people like myself that have earned income already, eventually want to move to the profit income stream. How do you do this?  You will need to identify a product or a service that you you can provide, market it well, sell it, and earn profit. If you manage this well, this can be a great way to earn more money.
  3. Interest Income
    • Interest income money is the money you get as a result of lending your money to someone else to use. For example, putting your money in the bank or a savings account. I have three interest bearing savings accounts that yield me interest income. Also, a few years ago, I put some money on a CD (certificate of deposit), which I was not able to access for a period of time. I decided to leave the money on the CD even after I was able to gain access to it again. All the while, it is collecting interest. This is a great source of passive income, which means your active involvement is not needed once the investment is done. A lot of people sleep on the wealth that interest income can generate, because it seems to grow so small, but if you do your research, and choose the right people/ sources to lend your money to, the wealth will grow over time.
  4. Divided Income
    • This is the money that you get as a return on shares of a company you own. For example, the dividend that most companies announce at the year end. The good news is, divided income is not taxable until you see a gain from it. This income is equally passive as interest income and the bonus is that it makes you a shareholder of a company. To be honest, I know the least about this stream of income, but it is one that I plan to tap more into in the next few years.
  5. Rental Income
    • Rental income is the money that you get as a result of renting out an asset that you have, like a house, or a building. This can be an extremely great source of income, but the biggest roadblock is that it requires a sum of money to create such an asset for it to generate a steady income. The average person doesn’t have $60,000 laying around to purchase a building to rent out. If you are able to come across a large sum of capital, investing in a rental property is a great idea.
  6. Capital Gains
    • Capital gains is the money that you get as a result of increase in value of an asset that you own. For example, if you buy your house for $275,000 then sell it for $350,000- that $75,000 difference is capital gains. If  you buy shares at $8 and sell them at $10- the $2 is capital gains. When I buy my dream house, I haven’t decided if I will use my current house as a rental property or make capital gains, but either way, it’s a good investment.
  7. Royalty Income
    • Does anybody watch the show Shark Tank? It’s one of my favorite shows and I binge watch it all the time! Anyway, one of the sharks on there, Kevin O’Leary, is infamous for making deals that include royalties for him. Royalty income is the money you get as a result of letting someone use your products, ideas, or processes. They are responsible for doing the footwork, they have to maintain the revenues, and you get a percentage of whatever they earn. For example, if you are a legal owner of any product, patent, or copyrighted work, the franchisee has to send you a royalty check. Sounds sweet, right? The most important thing with royalties is to make something that is unique and can be repeated. Once you tap into that kind of marketable asset, the money you can earn on royalties is endless.

So, what are my streams of income? I have two sources of earned income: 1) my corporate job where I earn a salary and 2) sponsored posts/ ads on my Instagram page and my website. My profit income will be my plant based recipe e-book that will be released and for sale very soon. My interest income is from my savings accounts and my Certificate of Deposit in the bank. In the next few years, rental income and capital gains will be under my belt as well. I hope this post has taught you something and will motivate you to get started on your financial goals. If you’re seriously ready to start building a better life for yourself, I am going to share a prized possession. Well,  I don’t own him, so I guess he’s technically not a possession, but I am sharing with you all my financial advisor, Adam. Adam has been in my corner helping me with my finances, my life insurance, and answering every call I have whether its about stocks and bonds, or college football (Go Noles!) Adam’s website is here, and I’ve gotten his permission to post his information in this blog. He is excited that I’m starting this conversation, and he’s ready to be a resource to all of you!

I hope you all enjoyed this blog post. If you have any questions at all, please feel free to comment or shoot me a personal message and I’m happy to help. Cheers to being a millionaire in this lifetime!

Xoxo,

Consuella ♥

 

 

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13 comments

    1. Thanks for reading. Send me a DM on instagram and I can give you more details about the sponsored posts.

      Xo,
      Consuella

  1. Thank you for sharing this great piece of information instead of keeping it to yourself. Very well put. Can’t wait to buy the e-book

  2. This is awesome! Great information and advice, this is what we have to teach our kids to create generational wealth

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