“Millionaires Have 7 Streams Of Income” Focus On One.

Good morning everybody, it’s a very common quote on the internet that millionaires have 7 streams of incomes.

But why are you trying to copy millionaires when you have $60 to your name? You need to just focus on one thing and grow that and become unstoppable in that domain.

Once you have done that then you can build different streams of income.

Diversification

Diversification is a type of risk management strategy. In it’s most basic form it’s a way to not have all your eggs in one basket. If you have all your wealth in stocks, and the stock market crashes then you could potential lose all your money.

It’s a very popular way to invest in a couple of different things and not risking all your money in one asset. It’s also a way that some investors.

Different Assets

Let’s have a look at some of the assets that millionaires either invest in or how they make their wealth, and a few pros and cons on these.

Salaries & Income

The traditional way of earning income, perhaps a 9 - 5 job. People in the position to become millionaires from a job have either worked their way up the ladder and been good at saving/investing, or they are generally older closing in on retirement.

A younger person who is working a job for income isn’t going to become wealthy or a millionaire when they are younger.

You’re also giving up your time if you’re working in a job. Your time that could be spent with your loved ones, or on your hobbies, but instead you’re going to a job that you probably hate. Working with people you most probably don’t like, for a pay check that won’t even last you until your next pay.

Investments

Millionaires have good connections and networks, a lot of them are good with technique or can read future market trends. Investments can includes assets like cryptocurrency, stocks, bonds, real-estates, hedge funds or many more.

You often see investors diversifying into multiple assets. This is because most investors are able to see longer term growth in different sectors of investing.

Investing is great because most of the time you can research the asset, buy the asset and then just hold it for however long you want to before selling it.

A lot of investments have high liquidity, such as cryptocurrencies and stocks. This means that when you want to sell it you click a couple of buttons on a computer and your asset has been sold.

Real-Estate isn’t as easy to sell though. You’ll need to hire somebody to sell the house and pay them multiple fees along the way. It can take a very long time to sell the properly aswell.

This includes the time that the real-estate agent is advertising the house for sale, and also the time it takes for the property to settle.

Entrepreneurship

Many millionaires are people who have started their own business. This is a very common way for people to become wealthy. It’s very hard though and takes a long time.

They say 90% of businesses fail in their first year. When you start your own business though you’ll need to be able to scale to become wealthy.

If your business is selling cupcakes in a small, local shop, or cutting somebodies hair there is limited growth, but if you are mass producing phones and selling them to the whole world you have the ability to grow much larger.

Building a business is a long process and could take years to see any type of growth at all.

Royalties

People who have written books, created music, or own patents have the ability to earn royalties for the rest of their life. This works because you have written a book and got it published, the publisher will give you a certain percentage of the profits every time they sell one of your books.

The same goes for music, your music is on Spotify so every time somebody listens to your song Spotify will give you a certain amount of money.

This is a great way to earn passive income for the rest of your life, the hard part is actually creating something that will attract long-term interest and be able to earn royalties.

Dividends

People who own stocks of profitable companies are able to earn dividends, this is when the company pays out a certain percentage of the profits that they make to the stock holders.

A great way to earn income without having to work for it.

There’s a risk in buying the stock and having the value of the stock drop. If you’re planning on holding the asset long term though this isn’t such a big deal if you believe in the company long term.

Even when the stock is falling in price you have the ability to earn the passive income through dividends though.

Rentals

People who invest in the real-estate market have the ability to earn income through rent payments. Real-estate is great because you can leverage debt, what I mean by this is you have the ability to borrow money, and then pay it back with the renters payments, while keeping the real-estate that is yours.

With real-estate you can also borrow a lot more money than you have. With a $500,000 house you can put down a 10% - $50,000 deposit and then borrow $450,000 from a bank.

When you rent out the property the person living in that home is essentially paying off your debt for you, and your net worth is increasing.

Online Business

One of fastest growing markets at the moment is online business, let’s face it. We are moving towards a digital economy and people are taking part in this in a huge way.

Ebook, digital commerce stores and YouTube are just some of the ways that people are becoming millionaires in this day and age.

Paid through sales, but also advertisements and sponsorships. Entering this market means you probably have a lot of competition though because anybody can do this from their phone and computer.

3 Billionaires

Let’s look at three of the most wealthy people in the world, and see how they made their wealth.

Jeff Bezos, the founder and former CEO of Amazon, made his fortune by starting and growing Amazon into one of the largest e-commerce companies in the world.

He launched Amazon in 1994 as an online bookstore and over the years expanded it into a vast online marketplace offering a wide range of products and services.

Bezos' net worth is primarily due to his stake in Amazon, which has grown significantly over the years and has made him one of the richest people in the world.

Elon Musk became wealthy through a combination of entrepreneurship and technology innovation. He co-founded the web software company Zip2 in the 1990s, which was eventually sold to Compaq for nearly $300 million.

He went on to found X.com, an online payment company, which eventually became PayPal and was sold to eBay for over $1 billion. He also co-founded Tesla Motors, which has become one of the most valuable car companies in the world, as well as SpaceX, SolarCity, Neuralink and The Boring Company, among others.

Through these ventures, Musk has amassed a significant personal fortune.

Warren Buffett became wealthy through a successful career as an investor and businessman. He started investing in the stock market as a teenager and eventually formed his own investment company, Berkshire Hathaway.

Through his top stock picks and business insight, he grew the company with holdings in a variety of industries, including insurance, retail, and finance. Buffett is known for his value investing strategy, which involves seeking out undervalued companies with strong potential for growth and holding onto them for the long term.

Over time, his wealth has grown significantly, and he is now considered one of the richest people in the world.

Elon Musk didn’t start Zip2, work at McDonalds, invest in the stock market, and sell plants on the weekends. Elon Musk founded Zip2, spent all day and night in his office trying to build it up and was also sleeping on the floor at his office.

He spent literally every second on his spare time building Zip2.

Jeff Bezos started Amazon in a garage, and worked on it all day and all night. He grew it over time slowly. Jeff Bezos wasn’t building Amazon, trying to be the best football player in the world and studying the stock market.

Focus On One Thing

What I am trying to say is if you’re building a business, you need to focus on that one thing. If you’re into investing, focus on that one thing. If you cannot afford to just focus on your business or investing at all times, then work your 9 - 5 and work on the business after work for 4 - 6 hours before you go to sleep.

Even better while nobody is paying attention work on your goals while you are at work. As long as you’re doing the bare minimum then it’ll be okay.

When you are successful and can quit your job you can think to yourself that you built a lot of your success at work.

Millionaires generally become wealthy through one avenue, once they become wealthy that’s when they move into different ventures. This is a part of risk management. They don’t want to lose all their money in one asset after making a personal fortune.

They also have the ability to make passive income through different revenue streams. This is another reverse why they diversify.

If you’re writing a book and trying to get published, but also researching cryptocurrencies in your spare time, then your book is going to take 5x as long to write, and it is not going to compete with somebody who is only researching and writing a book.

This can also apply to the field you choose. I see this all the time, and I see it as a massive mistake in amateur investing. People go out and buy 30 different cryptocurrencies, hoping that just one goes to the moon and they make $10,000,000.

The problem with this is that if you’re buying 30 different assets, you have not done the research needed to be comfortable in that asset. If an asset goes up, it must come down as it goes up, if you haven’t done enough research on that asset, the mental stress of these ups and down will literally make your brain explode.

You need that confidence, that you can only get from deep diving into 2 or 3 cryptocurrencies. Instead of 30.

This is also relevant with stocks in the stock market. If you’re investing into stocks I suggest you only research one field that you feel with grow in the future. Let’s say artificial intelligence or robotics for example.

Two sectors that will probably grow in the future. Now we have chosen ONE sector out of these, and you have done enough research on your specific sector you can start looking at specific companies.

But taking into account whether you want dividends paid out to you, or you are just looking for long term growth.

Now you can research a company you have found. This is where you are only getting into the ‘one thing’ again. You put everything into researching this company you’re confident in.

You check their financials, you check their management team, market sentiment, growth potential and anything else you need to check.

Doing this will also allows you to be able to ‘buy the dip’ as crypto investors say. As price drops you have spent soo much time researching ONE company that you are very confident in it. it drops 10%, you can buy some more stocks, it drops another 5% you can buy some more stocks.

You’ll be confident enough to not stress about your investment because you have done your homework.

If you’ve bought 40 stocks of random companies in different sectors then you have no chance of getting this confidence built up, and you haven’t put enough effort into each investment to be confident in long-term growth. You’re essentially gambling.

Do you think famous sports stars became the best in the world because they were working on multiple different things at once? No, they became the best in the world because they were working on one thing.

After they become wealthy using that one thing, then they diversified.

This is truly what I recommend, don’t start trying to do 5 different things and expect to become successful.

ONE thing is all you need, put all your effort into that and you’ll see growth and confidence. Once you get more confident, then you become more motivated aswell.

The more confident you are, the more motivated you are. This will reflect through your personality aswell, and you’ll get that fire inside of you when you start to talk about the one thing you have been working on for years.

And BAM! Congratulations you have worked soo hard on that one thing you are now a millionaire and successful in your chosen field