Have you ever heard the statistic that millionaires have an average of seven streams of income?
I tried to find the survey, report, or some official repeating that statistic but was unsuccessful. That said, seven sounds good to me.
More importantly, how do we get them?
What spurred this blog post was an idea put forth by my friend at ESI Money in which he talks about how the first million is the hardest. ESI shares how his net worth growth has accelerated. The first million took 19 years of work (the clock starts when he started working, not at birth!) but the 2nd million took just 4 years and 9 months. J Money took this same idea and started at $100k, which took him 7yrs 11mos. Each of the next $100k milestones took close to 18 months each to reach.
The more money you have, the more money you’ll get.
The rich do get richer – here’s the playbook.
Let’s talk about making money
Let’s start by talking about making money, or, your income.
There are two types of income – active and passive.
Active income is when you do work and are paid for that work. If you work at McDonald’s, you are paid for the hours you work. If you work in an office, you may not clock in and clock out but you are paid based on the work that you do. If you do nothing, you will no longer be paid.
Passive income is when the payment is not directly tied to active work. Interest and dividends are prime examples of passive income. Typical passive income sources are front loaded with active work, for which you are paid a small amount, while the bulk of the income comes later.
Jim Wang of Wallethacks.com is a thirty-something father of two who has been featured in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money. He can show you the philosophies, strategies and methods he used to become financially independent and free to pursue what was important.