Do Millionaires Really Have 7 Streams of Income?

Do Millionaires Really Have 7 Streams of Income?

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[seriousfaith]

Nuance matters in data… streams of income is the result, not the cause!

[JosephineGaule]

Impressive, i made $500k from multiple income streams with the help of my FA Olivia Rene Reyes, i hope this inspires someone to stop slacking off and save to invest for early retirement. Personally, i'd rather be in hawaii living off dividends with my husband than working the rest of my life when i could have invested in long term high yield etf's, as for me i have personal stake in APPL, TSLA, NVDA along with ABBV and KO when i focus on dividends. Goodluck

[denisep.]

Bo made an EXCELLENT observation - multiple savings/investment streams! Income streams are often talked about, but the savings portion is critical.

[Mr_Fairdale]

“You have to define income”

_The IRS has entered the chat_

[genxretiree]

My wife and I are multi millionaires and I would say pre-retirement we have four important streams between wage income, interest income, investment income and commercial rental income. However, we didn’t have the middle two without the first one to build the middle two (saving wage income to create interest/investment income). We have a business as well so we have income from the biz but we pay ourselves as W2 so I count that as wage income. In retirement after we sell the business we replace wage income with social security income as a stream but interest and investment income will be our primary drivers. We may or may not keep the commercial building as a rental income stream. And we may sell an item here or there on eBay but I wouldn’t say that’s a necessary income stream. So after rambling I’d say 3-4 streams is more accurate.

[kevinschultz]

Yep: I've got those four as well.
1. Job
2. 401k/Roth/brokerage
3. A Rental - I was able to save up enough for a 2nd house without selling my 1st.
4. Side Hustle - I teach private lessons in martial arts; it's enough to basically pay for my other martial arts stuff.

In the article I read, I think the other 3 are
1. RSU/Stock options (from your job)
2. Splitting investments into dividends and stock sales
3. Social Security or a Pension.

[livingunashamed]

My streams: W-2 job, side hustle, cash interest, stock dividends, and credit card cash back.

[darthvanderh]

The 7 streams of income idea came from a report done by the IRS. I'd love to see The Money Guy Show dive into how the IRS defined and created this report vs what they see with their clients.

[michaeldew]

I don't think capital appreciation counts. It's not income; it's increasing net worth. I think the biggest problem with saying they have 7 streams of income is the chicken and egg problem. They have money, (this will be an example only) so they buy a rental property which adds a stream of income. They didn't have 7 streams of income to get to be a millionaire, they had 6 and became a millionaire, then got the seventh.

[RobWilliams]

Options, stocks, bonds, royalties, job, residential rentals, commercial/office rentals, owning a business, consulting, owning commodities, farmland….

[bryansu]

7 streams of income discussed in a 7 minute video. I see you.

[Dividend_Info]

I think that it's better to be an expert in one thing to focus on it till you make enough money to be independent and then you can do whatever you want.

[WinstonBoogie]

I've got three streams. I'm very thankful for that. Many don't even have one. As for 7 streams, I'm no millionaire but I pray I could continue the streams I have now. Many people I know have said I work too hard, but I enjoy my job so i just continue doing what I'm doing.

[crazyman]

7 streams of income:
Earned income
Business income (self-employment)
Interest income
Capital Gains
Dividends
Rental Income
Royalties

Id say for many average folk, 3 streams would be what we'd achieve until retirement, then maybe we'd increase to 4 or 5.

Out of curiosity, if u can get this into the hopper: in general, how many streams of income do your clients have?

[thehomeless_trucker]

This is what they mean by 7 streams of income...

1. Earned income
2. Capital Gains
3. Interest income
4. Dividend income
5. Rental income
6. Business income
7. Royalty income

[getinthespace]

I hope to be a a millionaire in the next 7 years, a few years before I hit 50.

If you are breaking up the individual investments mine look like this:
1. 8-5 job Income
2-4. Saving and investing. Growth Stocks, Dividends, Interest
5-6. Rental properties. Cash Flow, Equity (I'm building single family, short or long term rentals hoping to get to 5 or 6 all debt free).
7. If I get here it would be monetizing my hobbies.
When I "Retire" I'll have to decide whether to keep the rental properties or sell them.
Then I'll be down to 3 or 4 income streams. Assuming social security is bankrupt.

[DaveM-FFB]

"Necessity" wasn't the question. Most millionaires have income from real estate investments and/or business ownership, plus dividends and capital gains. If they are retired, they may also have pensions, Social Security, etc.

[missgui]

I used to work for a bank and a lot of elderly people have CD’s. Some of them could get $1000 a month just for the interest alone. I’m sure some could get more.

[me]

So what I'm understanding is, build savings dams; the income streams will take care of themselves. Is that correct?

[Joenzinator]

If I have solar panels, can I consider that $100/month a stream of income? The question is silly.