The Seven Income Stream Fallacy: The Power of Focus Over Quantity (2024)

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The Seven Income Stream Fallacy: The Power of Focus Over Quantity? ›

The Seven Income Stream Fallacy: The Power of Focus Over Quantity. In a world that champions the mantra “more is better,” the allure of building multiple streams of income is potent. The conventional wisdom suggests that the wealthiest individuals have an average of seven income streams.

That's where the concept of having multiple streams of income comes into play. As the saying goes, the average millionaire has 7 streams of income. In this article, we will delve into these income streams and explore how they can pave the way for you to become a millionaire.

You can have as many income streams as you want, but the right number for you will depend on your goals and current resources. If you don't have a lot of time to devote to establishing many passive income streams, it may make sense to only have a few until you can free up time.

Meaning of income stream in English

a regular supply of money that comes from something such as an investment or business: These bonds provide steady income streams. There would be an attractive income stream from renting out part of the property.

If you're new to this, having multiple streams of income just means that you have income from several different sources. What is this? For example, if you have your normal 9-5 job and Etsy store that you manage, then you have two different ways of making money; therefore, you have multiple streams of income.

The average millionaire has seven streams of income, which may sound surprising to many. However, it is their mindset that leads them to achieve this financial milestone. Having multiple sources of income can help one sail through the ups and downs of any industry, be it network marketing or real estate.

Meanwhile, the top 1 per cent holds an average wealth of 54 million rupees each.

On average, you'll have to earn 300,000 to 350,000 streams to generate roughly $1000. Due to those variables we mentioned above, however, streams are not created equally. The actual number of streams needed to earn $1000 can range anywhere from 150,000 on the low side to 600,000 on the high side.

Understanding the Seven Income Streams

The most written about income streams typically include: earned income, profit income, interest income, dividend income, rental income, capital gains, and royalties.

Do you need 7 streams of income? ›

While having multiple streams of income can be a great way to build wealth and achieve financial freedom, it's important to recognize that you don't need to have all 7 streams of income to build wealth.

Annuities are income streams purchased from life insurance companies or friendly societies with either ordinary money or superannuation money. Superannuation pensions are income streams that are purchased or paid from a superannuation fund.

Passive income is a money stream that requires little or no continuous effort. As a business model, it's largely self-sustaining; often, passive income involves some kind of upfront or initial investment that generates long-term steady gains.

The Bible also offers some pretty amazingly specific guidance on diversifying our income streams. Ecclesiastes 11:2 says, "Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth." In other words, don't put all your eggs in one basket.

However, if you start maximizing your income generating potential through your primary salary, you will find yourself having excess income that you can reinvest to generate additional income streams use different buckets of assets. Remember, the average millionaire has 7 different income streams.

Understanding the Seven Income Streams

The most written about income streams typically include: earned income, profit income, interest income, dividend income, rental income, capital gains, and royalties.

Hypebot recently calculated the average pay-per-stream rate as between $0.003 and $0.005. If we times this number by one billion, we end up with $3 million – $5 million. However, don't think that all of this money ended up in the pockets of the artists you stream.

This is based on the Worldwide Average (all the countries added up, divided by number of countries). So, 1000 streams would be around $2.38, and 100,000 streams would be $238, and 1,000,000 streams would be $2380. The actual amount Spotify pays per stream will change based on where your streams are coming from.

He's the first K-Pop Soloist and Fastest K-pop Act to reach this Milestone in Spotify history!