Hey, guys are you looking for How to become rich, or are you earning from only one income source like a job. if you have any queries about what are the Income sources of most millionaires or looking to earn money and generate passive income sources for wealth.
The article is all about passive income ideas to generate massive wealth. In this 21st century, the ideal question to lead a successful life shouldn't be ''how much you earn'', it has to be ''where you invest the money you earn.'' Many might question why they need to invest where they are good to go with their salaries the answer is INFLATION.
Times have changed, the world has changed with respect to that people's mindset needs to be changed. Inflation increases with the gradual increase in population and we need to not just confine ourselves in limited perspectives, in these tough times to cope up with the inflation we need to have at least 3 income-generating sources to live well in this tough competitive world.
So guys here are few paths of income sources to build wealth. Make sure to read the blog till the end.
Here's the shortlist of the income paths you will learn in this article to build passive income sources and get rich in India,
1. EARNED MONEY.
2. PROFIT MONEY.
3. INTEREST.
4. DIVIDEND MONEY.
5. RENTS.
6. CAPITAL GAINS.
7. ROYALTY.
Each source of money explained briefly, including its details and specialties.
1. EARNED MONEY.
Yes, You read it right. Basically, it is the first and last source of income for the majority of people out there. It is the source of money you earn bargaining your time for some one's need and want in return for some charge.
Obviously, JOB means Just Over Broke, but the reason many end up as employees, working for that paycheck rest of their lives is that this source of income brings with it a couple of elements which are certainty and comfort.
Certainty because you will surely get a particular amount of money at the end of the month.
Comfort because as the time passes you will end up in a comfort zone where you will be left with low courage to leave the job as it provides you certainty and a routine that you are very used to working for.
In the long run, you will end up with regrets for not working out against your comfort zone as you will not achieve the extraordinary life that you normally wish to live, though you spend maximum time in your job you still will not have enough money to lead a wealthy life.
Always remember -
2. PROFIT MONEY.
Selling any of your products for a little bit more the price you make it and generate profits. Here you will learn about Entrepreneurship.
You have to invest money in whichever business in the initial days of your career as an entrepreneur and also need to make a few changes in your mindset and risk-taking capability.
You need to spend lots of your time in learning and managing your customer and business, Many find it difficult to enter into this stage of career due to family responsibilities and needs.
If you figure out the best product or service you want to sell by managing it excellently, eventually this has the potential to become a passive source of income and perennial flow of money into your wealth.
Hold on, though most of the people can't make it but don't worry as there are few other income sources that you can definitely try and increase your wealth.
3. INTEREST.
This is everyone's cup of tea.
If you already have a set of money in your savings you can either give loans to someone you know for some fixed percentage of money for every month as interest until the borrower pays off his debt or you can go for savings account in banks where you will get an interest of some percentage of cash every month without working for it.
This is a great passive income source as it is a low-risk high-profit game but you should be extra mindful of where you are putting your money into.
4. DIVIDEND MONEY.
It is a sort of income that is both passive and makes you a shareholder of a company. The money you get is a return for the shares of the company you own.
If you have invested smartly on ex-dividend dates in good blue-chip companies you can exceed the dividend incomes than what you get from the interest and you will also have an asset as capital gains as the share price goes up through.
5. RENTS.
You generate cash-out of this by lending your assets to someone like building, vehicles, plot area, etc.
Though you can generate a good sum of money out, this has its cons too. The biggest con or drawback here is massive money is required to generate any asset, where some may not build an asset in their lifetime due to their scarcity of resources.
You can easily start interest money with 2000 INR initially but it's not the same with rental income where you need some lakhs of money to invest in buying any asset before lending it for someone,
6. CAPITAL GAINS.
When you buy assets like gold, land, buildings, shares, etc due to INFLATION these assets value will increase creating a profit value for you in the future.
In the longterm only you can make good capital gains largely in majority cases.
Take the example of gold where a couple of decades back from now the price of 1 gram of gold would be 800 INR for instance but now its price spiked to 5000 INR.
You see the profit, this is how capital gain works, the same applies to every other asset out there but to get maximum gains you have to think in long term view.
7. ROYALTY.
You earn money by letting someone use your products or ideas. If you are a writer then you earn on the basis of the number of books sold and the number of people read it.
For example, Bill gates who is considered as the 2nd richest person in the world has become a billionaire through royalty and profit money where he was so good at creating products and made a royalty product called WINDOWS and changed our way of interacting with computers.
ENDING REMARKS.
These are the source of income to generate wealth and most of the millionaires today have multiple sources of income.
Take an example of warren buffet he is one among the top 5 billionaires in the world had only 2 income streams which are capital gains and dividend income.
He bought shares in the stock market which in the future worked as assets and profit from capital gains but buffet became a billionaire at the age of 56 which represents that you have to think in long term to generate profits in capital gains.
It's impossible to find a billionaire from the income source of earned money. Always remember one important thing that is ''the biggest risk in financial life is being dependent on a single source of income in which you are involved''.
Times have changed, the world has changed with respect to that people's mindset needs to be changed. Inflation increases with the gradual increase in population and we need to not just confine ourselves in limited perspectives, in these tough times to cope up with the inflation we need to have at least 3 income-generating sources to live well in this tough competitive world.
So guys here are few paths of income sources to build wealth. Make sure to read the blog till the end.
Here's the shortlist of the income paths you will learn in this article to build passive income sources and get rich in India,
1. EARNED MONEY.
2. PROFIT MONEY.
3. INTEREST.
4. DIVIDEND MONEY.
5. RENTS.
6. CAPITAL GAINS.
7. ROYALTY.
Each source of money explained briefly, including its details and specialties.
1. EARNED MONEY.
Yes, You read it right. Basically, it is the first and last source of income for the majority of people out there. It is the source of money you earn bargaining your time for some one's need and want in return for some charge.
Obviously, JOB means Just Over Broke, but the reason many end up as employees, working for that paycheck rest of their lives is that this source of income brings with it a couple of elements which are certainty and comfort.
Certainty because you will surely get a particular amount of money at the end of the month.
Comfort because as the time passes you will end up in a comfort zone where you will be left with low courage to leave the job as it provides you certainty and a routine that you are very used to working for.
In the long run, you will end up with regrets for not working out against your comfort zone as you will not achieve the extraordinary life that you normally wish to live, though you spend maximum time in your job you still will not have enough money to lead a wealthy life.
Always remember -
''You will never change your life until you step out of your comfort zone, change starts at the end of the comfort zone.'' - Roy T Bennett.
2. PROFIT MONEY.
Selling any of your products for a little bit more the price you make it and generate profits. Here you will learn about Entrepreneurship.
You have to invest money in whichever business in the initial days of your career as an entrepreneur and also need to make a few changes in your mindset and risk-taking capability.
You need to spend lots of your time in learning and managing your customer and business, Many find it difficult to enter into this stage of career due to family responsibilities and needs.
If you figure out the best product or service you want to sell by managing it excellently, eventually this has the potential to become a passive source of income and perennial flow of money into your wealth.
Hold on, though most of the people can't make it but don't worry as there are few other income sources that you can definitely try and increase your wealth.
3. INTEREST.
This is everyone's cup of tea.
If you already have a set of money in your savings you can either give loans to someone you know for some fixed percentage of money for every month as interest until the borrower pays off his debt or you can go for savings account in banks where you will get an interest of some percentage of cash every month without working for it.
This is a great passive income source as it is a low-risk high-profit game but you should be extra mindful of where you are putting your money into.
4. DIVIDEND MONEY.
It is a sort of income that is both passive and makes you a shareholder of a company. The money you get is a return for the shares of the company you own.
If you have invested smartly on ex-dividend dates in good blue-chip companies you can exceed the dividend incomes than what you get from the interest and you will also have an asset as capital gains as the share price goes up through.
5. RENTS.
You generate cash-out of this by lending your assets to someone like building, vehicles, plot area, etc.
Though you can generate a good sum of money out, this has its cons too. The biggest con or drawback here is massive money is required to generate any asset, where some may not build an asset in their lifetime due to their scarcity of resources.
You can easily start interest money with 2000 INR initially but it's not the same with rental income where you need some lakhs of money to invest in buying any asset before lending it for someone,
6. CAPITAL GAINS.
When you buy assets like gold, land, buildings, shares, etc due to INFLATION these assets value will increase creating a profit value for you in the future.
In the longterm only you can make good capital gains largely in majority cases.
Take the example of gold where a couple of decades back from now the price of 1 gram of gold would be 800 INR for instance but now its price spiked to 5000 INR.
You see the profit, this is how capital gain works, the same applies to every other asset out there but to get maximum gains you have to think in long term view.
7. ROYALTY.
You earn money by letting someone use your products or ideas. If you are a writer then you earn on the basis of the number of books sold and the number of people read it.
For example, Bill gates who is considered as the 2nd richest person in the world has become a billionaire through royalty and profit money where he was so good at creating products and made a royalty product called WINDOWS and changed our way of interacting with computers.
ENDING REMARKS.
These are the source of income to generate wealth and most of the millionaires today have multiple sources of income.
Take an example of warren buffet he is one among the top 5 billionaires in the world had only 2 income streams which are capital gains and dividend income.
He bought shares in the stock market which in the future worked as assets and profit from capital gains but buffet became a billionaire at the age of 56 which represents that you have to think in long term to generate profits in capital gains.
It's impossible to find a billionaire from the income source of earned money. Always remember one important thing that is ''the biggest risk in financial life is being dependent on a single source of income in which you are involved''.
Please let us know by commenting on which income source you are going to think about and start working on it and write your views and opinions or queries in the comment section below.
For ideas of how you can start your profit money or royalty, you can check out our blog by clicking here top online business ideas to start in 2020 and best home business ideas to start with zero investment.
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