Time-Tested Financial Habits, part 2 of 5
From Motley Fool comes this —
2. They focus on raising their income
Millionaires understand that 20% of $250,000 is better than 30% of $100,000. They don’t focus just on saving but look to increase their salary and create multiple streams of cash. Because the more you earn, the more you can save.
According to a study by the IRS, there are seven common types of income millionaires have:
- Dividend income from stocks
- Earned income from a job
- Rental income from real estate
- Royalty income from selling rights
- Capital gains from selling appreciated assets
- Profits from business
- Interest income from savings, CDs, bonds4
Multiple streams of income should help grow wealth faster. They also can add diversification so if one fails, the others may have the potential to help pick up the slack.
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