7 Ways Millionaires Make Money
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Do you know what separates the rich and the poor? Simply put, it’s the number of ways both groups earn income. It is said that the average millionaire has around seven streams of income while the average person typically only has one and you guessed it, that one income stream is their job. However, as you’ve probably come to realize, jobs aren’t the best way to make a fortune which is why the rich depend on multiple streams of income to grow their wealth. They leverage both active and passive income to fuel their wealth generation engine and over time these streams are what build their sizeable wealth. The good news is that once you learn how the rich make money, then you can start to duplicate their strategies. As such, let’s dive into 7 ways millionaires make money!
Method #1: 9 To 5 Income
As I just mentioned, gaining your income solely from a job is not likely to make you rich but that doesn’t mean the rich don’t have their 9 to 5 job as a part of their income generation strategy. Now, their roles can vary from being mid-level managers to CEOs in corporate firms to doctor or engineers. Any and all of these roles work within the paradigm of trading time for money which is otherwise known as active income. In fact, this active income extends beyond a 9 to 5 job as it can also be tied to freelance work. This type of income is typically the starting point for many self-made millionaires. This is where the average person starts, and this is beneficial for a few reasons.
First, this is probably the easiest way to start making money and with this money you can invest into other ventures that will yield you a return and grow your wealth. Also, working a 9 to 5 job will help you work on skills like your interpersonal and problem-solving skills which will come in handy if you decide to start your own business. Now, there are also downsides to this method of making money with the first relating to trading time for money. We all only have so many hours in the day and when you work more to make more, you are giving up other activities in your life like family time, time to exercise or just enjoy life in general. Not to mention, if you start to get too comfortable in your job, you may never feel the need to strive for more money and will have to settle for whatever standard of living your job currently offers you.
