*The 5 Types of Income Streams That Aren't Scams*

Did Bitcoin make the list?

I'm sure you've heard that the average millionaire has 7 income streams.

Millionaires make money in a lot of different ways. The NUMBER of legitimate income streams is virtually unlimited.

But all of them can be categorized into only five TYPES.
1. Work for a Company

This is the most common income stream. Most people start here.


-Work a job
-Work a 2nd job
-Pursue a fulfilling career
2. Own a Company

This a great option for disciplined people. It's harder than a job, but there's potential for more reward.


-Side hustle
-Contract work
-Passion project
-Active partnership
-Start a small business
-Grow into a large business
3. Invest in Companies

This is much easier than running a business. It's a great way to grow wealth with little effort.


-Index funds
-Value stocks
-Growth stocks
-Angel investments
-Passive partnerships
4. Invest in Bonds

A bond is basically just a loan. When you buy a bond, you are the lender and you earn a return on the loan.


-Corporate bonds
-Municipal bonds
-Federal treasuries
5. Invest in Real Estate

Real estate investing is owning physical property. There are numerous strategies.


-SFH Rentals
-House Hacking
-Multiplex Rentals
-Commercial Rentals
-Real Estate Syndications
All 5 types of legitimate income streams benefit society.

The first two provide goods and services.

The next two provide capital for goods and services.

The last one provides space for families and businesses to thrive.
So what's NOT a legitimate income stream?

-Stores of value
-Mediums of exchange

Sorry to say it, but this includes:

But cash earns interest, right?

Yes. But historically interest rates lag inflation.

Holding cash means you are losing purchasing power over time.

An emergency fund is a good form of insurance. But cash is NOT an income stream.
But gold historically beats inflation, right?

Not consistently. And not by much.

If you want to hold a small portion of gold in your portfolio for diversification, have at it.

But don't fool yourself into thinking that gold will provide an income stream.
But Bitcoin is the way of the future, right?

I'm not convinced.

Bitcoin fluctuates too wildly to be a good store of value. And it's too inefficient to be a good medium of exchange.

Buying Bitcoin in hopes of receiving a return is pure speculation.
Profiting from cash, gold, or Bitcoin is a zero sum game.

If you profit from them, someone else must lose.

These "assets" provide no value to society.
Want multiple income streams? Build them. But stick to these five categories:

-Work for a Company
-Own a Company
-Invest in Companies
-Invest in Bonds
-Invest in Real Estate
Did I nail it? Share the first tweet.

Anything to add? Let me know.

Am I wrong? Tell me why.
You can follow @ChrisB_Finance.
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