It’s a commonly quoted statistic that the majority of the world’s millionaires have at least 7 streams of income.

Whether your goal is become a millionaire or just to stop living paycheck-to-paycheck, the best way to shortcut your success is to follow this same success shortcut and work on creating multiple income streams for yourself. And the best time to start is right now!

Here are the three types of income you need to build wealth (in your 20s, 30s, and beyond).

1. Earned Income

This is probably the type of income that we are all the most familiar with. Earned income is any sort of income that you “earn” by trading your time for money. Common examples of earned income is any sort of hourly or salaried job where you are working under an employer to earn a paycheck.

While this earned income is easy to acquire, and a relatively stable income source (with earned income, you typically expect a paycheck on a weekly, bimonthly, or monthly basis), it is limited because you are trading your time for money. And you only have so much time that you can give away – whether it’s 20 hours a week or 40 hours a week (or more!) You will inevitably hit a ceiling with earned income; even if your hourly rate increases significantly, you will never be able to achieve exponential growth for yourself.

And furthermore, when you STOP working and spending that time to receive a paycheck, you income will stop as well.

In order to create real wealth for yourself, you need to work on growing the next two types of income streams..

2. Passive Income

You have probably heard the term “passive income” by this point in your life. But let’s break down what it is and how you can start earning it – today.

What is Passive Income?

Passive income is a way to make money and build wealth for yourself where your income is not dependent on any time-based actions. You are not trading your own time for money, and money arrives in your bank account in an evergreen, unlimited capacity.

I also like this definition of passive income from Good Financial Cents:

“Passive income is money earned with minimal activity through a variety of ventures which require little daily effort or upkeep on the individual’s part.”

Bottom Line: Passive income is any sort of earning opportunity where you are not trading YOUR time for money, which creates an unlimited earning potential.

Examples of Passive Income

Some great examples of passive income are:

• Book sales
• Course or online product sales
• Ecommerce store sales
• Affiliate commissions from promoting someone else’s product
• Advertising earnings from promoting someone (usually via a blog or web property)
• Membership in a sales group (such as multi-level or network marketing) where you are paid commission based on the sales activities of someone in your network
• Investment returns
• Real estate rentals

Many of these you can start or set up today! Over the past year, one of my biggest goals was to increase my own passive income streams to be able to stop trading my time for money, and increase my income overnight (because yes, one of the benefits of passive income is that you can make it while you’re sleeping!) Currently, I have 5 passive income streams going – which is 3 more than I had this time last year. Sure, some are more successful than others, but the ability to make money with little-to-no-ongoing effort is an ROI you just can’t beat!

Want to get started setting up your OWN passive income streams? Let’s talk!

3. Leveraged Income

The third type of income you need to really explode your business and create substantial wealth for yourself of the path to financial freedom is leveraged income.

Leveraged income involves finding a way to offer your product or service to multiple people, while still only involving a limited amount of your own time.

Examples of Leveraged Income

Some of the best examples of leveraged income include:

• Conducting an online workshop for multiple people
• Teaching an in-person class or workshop to multiple people
• Giving a talk to multiple people
• Leading a Mastermind or group coaching call for multiple people

In all of the examples listed above, people are paying to attend the service you are offering. So, even though you may only be devoting, let’s say, an hour of your own time to give a speech and answer people’s questions, you are reaping the returns of having 10s, 100s, maybe even 1000s(!) of people pay to listen to you do so.

Here’s an example that combines all 3 income types:

Let’s say you typically charge $100 for an hour of your time.

In an earned income scenario: you will earn $100. You will get paid by 1 person for the time of your services, end of story.

In a leveraged income scenario A, where 5 people are paying for that same service and time: you will earn $500

In a leveraged income scenario B, where 50 people are paying for that same service and time: you will earn $5,000!

(And as a bonus example: let’s say you also have a book that you’re selling for $20. When you finish leveraged income scenario B, you spend 1 minute or 2 telling people about your book, and directing the 50 attendees to your book on Amazon. If 20% of them (10 people) end up buying it – that’s $200 in additional sales, completely earned from passive income!)

So… you can see how a mix of these three different income streams can really add up to create long-term wealth and financial freedom.

If you’re struggling to create wealth for yourself – If you’ve been dreaming of breaking out of a rut, finding your dream job, or starting your own business (or maybe you’ve started one, but hit a ceiling), I got you covered!

I rarely (like once every 3 months…) open up time slots for Free 1:1 Clarity Calls, but I’m feeling extra giving today and want to connect with any dream-seekers who are serious about stepping up into this next level and hearing what it would be like to have a coach to guide you through it.

Because let’s be real… starting an online business solo, or making any other SERIOUS life change to substantially increase your income can feel damn near impossible – that’s why I love opening up Clarity Call spots to see how I can serve you!

I have a few dates/times coming up over the next few days so click here to scoop up one for yourself so we can hop on a call!

They’ll fill up fast, so make sure to grab yours now – and let’s start creating YOUR plan for financial freedom!