Andrew Lokenauth | TheFinanceNewsletter.com
Andrew Lokenauth | TheFinanceNewsletter.com

@FluentInFinance

11 Tweets 3 reads Feb 07, 2023
What do most millionaires have in common?
Most millionaires create multiple income streams:
• Investment income
• Interest income
• Earned income
• Rental income
• Capital gains
• Royalties
• Profits
How many do you have?
🧵Let's talk about creating each income stream:
(1) Active income streams are those where you actively participate in generating income. Examples of active income streams include:
• Wages and salaries from a job
• Commission-based sales
• Freelance work
(2) Passive income is where you earn money without actively participating. Examples include:
• Dividends from investments
• Rental income from real estate
• Online businesses with automated systems
• Royalties from intellectual property such as books, music, or patents
1/7 - Earned income:
Money earned from working, either as an employee or as an entrepreneur.
Earned income is the most traditional and common source of income and can provide a steady source of income.
2/7 - Capital gains income:
The profit earned from selling an asset, such as stocks, real estate, or collectibles, for more than its purchase price.
Capital gains income can provide a significant source of income when the assets are sold.
3/7 - Royalty income:
The recurring payments received for the use of intellectual property, such as patents, copyrights, trademarks, or licenses.
Royalty income is a form of passive income that provides a regular source of income without the need for active participation.
4/7 - Profit income:
Income generated from a business, investment, or venture.
Profit income is an important component of building wealth, as it provides a source of income that is not tied to a specific job or salary.
5/7 - Rental income:
Money earned from renting out property, such as real estate or equipment.
Rental income can provide a passive source of income.
6/7 - Interest income:
Money earned from interest payments on savings accounts, certificates of deposit (CDs), bonds, and fixed-income investments.
Interest income can provide a passive source of income.
7/7 - Investment income:
Money earned from investments such as stocks, index funds, real estate, and other assets.
Investment income can provide a passive source of income.
The rich don't work for money, they have money work for them.
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