The Average Millionaire Has 7 Incomes Quote
If you've ever heard the saying "the average millionaire has 7 incomes", you may be wondering what it actually means. Does this mean that millionaires have 7 different jobs or businesses? Or does it mean that they have multiple streams of income from the same source? In this article, we'll explore the meaning behind this famous quote and what it takes to become a millionaire with multiple incomes.
What Is Multiple Income Streams?
Multiple income streams refer to having more than one source of income. For example, if you have a full-time job that pays a salary, but you also have a side business that generates additional income, then you have multiple income streams. This concept is not limited to just jobs and businesses, but can also include investments, rental properties, and royalties. The more income streams you have, the more diversified your portfolio is and the less vulnerable you are to financial setbacks.
The Importance of Multiple Income Streams
Having multiple income streams is important for a number of reasons. Firstly, it provides a safety net in case one income source dries up. For example, if you lose your job, having a side business can help you cover your expenses until you find another job. Secondly, multiple income streams can help you achieve your financial goals faster. If you're trying to save for a down payment on a house or pay off debt, having additional income can help you reach those goals faster.
The Truth About the Average Millionaire
The quote "the average millionaire has 7 incomes" is often attributed to Thomas J. Stanley, the author of "The Millionaire Next Door". However, this quote is somewhat misleading. According to a study by Fidelity Investments, the average millionaire actually has 7 sources of income, not 7 different jobs or businesses. These sources of income can include things like investments, rental properties, and royalties, in addition to their primary job or business.
How to Develop Multiple Income Streams
Developing multiple income streams takes time and effort, but it's not impossible. Here are a few ideas to get you started:
- Investments: Consider investing in stocks, bonds, or real estate to generate passive income.
- Rental Properties: If you have the capital, consider purchasing a rental property that can generate rental income.
- Side Business: Start a side business that aligns with your interests and skills. This can be anything from freelance writing to selling handmade crafts.
- Passive Income: Look for ways to generate passive income, such as creating an online course or writing an eBook.
Conclusion
The concept of having multiple income streams is not new, but it's becoming increasingly important in today's economy. The quote "the average millionaire has 7 incomes" is a reminder that having multiple sources of income is a key factor in achieving financial success. Whether you're looking to pay off debt, save for a down payment on a house, or achieve financial freedom, developing multiple income streams can help you reach your goals faster and with less stress.