Did you know there are a total of 7 income streams? That is 7(!) different ways to make money, of which your job is just one… In today’s challenge you are going to find out about these seven types of income and then discover which one of these might appeal to you most to develop further and start generating some extra money.
The seven income streams are:
- Earned income from a job – money you earn by working either in your own company or for someone else. This income stream is generally based on getting paid for your time.
- Profit – money you make by selling products or services as part of a business activity at a higher price than the cost price.
- Interest income – Money you get from lending money to others, such as to a bank, the government or through investments with initiatives like crowd funding.
- Capital gains – Money you receive as a result of selling something that you acquired at a much cheaper price than what you are selling it at.
- Dividend income – Money you get from shares if the company whose shares you own makes a profit they can pay out.
- Royalties – Money you receive on products you have made or from franchises of your brand.
- Rental income – the rent that you collect from renting out assets that you own (usually property).
For today’s task, sit down for a moment, review these seven income streams and then map out how much you are making from each of these on a yearly basis already. Some might be more than others, especially interest income might be very low and of course several of these sources might be 0 for you, but the aim is to get a rough idea of your yearly income for each of these areas.
Share your ideas in the Facebook group, on Twitter or Instagram with the #31DayChallengeToFE hashtag so we can all find it. More information on these various income streams can be found in the 100 Steps Mission to Financial Independence, in particular from step 32: Multiple Income Streams onwards, where each stream is covered in more detail.