Saturday, 26 September 2015

Income streams

Soon i will work out to a new formula of income streams, to change the old one. In the old one i had like 13 income sources in different categories. But after a bit of study i just reduce them to 7 main income sources.

They are:
1. Earned income. This is out main job, our wages.
2. Profit. This is the profit we obtain by side hustle or our own proper business.
3. Interest. Amount of money paid by bank for our savings deposit.
4. Dividend. Amount of money paid by a company of which we hold shares.
5. Rental. Money coming from rent (real estate).
6. Capital gains. Money coming from shares increasing in value or companies we own increasing value.
7. Royalties.

Strategy and vision.

One sours of income is not a good idea. Never ever. Probably 2-3 are safe enough. I think that 4 of them will give us a proper safety even in case of a global crisis. More than 5 will probably result in too much time to manage, let's not forget that our main objective is to trade money for time. Time we want to use for our own happiness.

Send me your opinions, as usual. I am curious what you think about this.

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