5 Income Streams Everyone Need to Know About

Introduction

For most people, it's a constant struggle to make ends meet. If you're like me, then you know the feeling of having too much money—and not knowing what to do with it.

The worst part is trying to figure out which income streams are right for your situation. In this post we'll go over five main types of income that can help you create extra cash flow in your life: traditional employment (full-time jobs), side hustles (small businesses), passive income streams (dividends, interest), real estate (rental property) and financial gains (capital gains).

Traditional Employment

Traditional employment is the most common way to make money in the United States, but it also has its downsides. You're likely to have more invested in your career than you'd like and will have less time for yourself or your loved ones. If you're looking for a way to supplement your income, this could be an option for you.

Pros:

You know what's going on at all times: If something goes wrong with your job—if there's a layoff or other change in management—you'll be able to find out about it quickly. Because many companies keep employee data private, however, there isn't much information available about how much money people are making or how much they're being paid per hour (and thus whether they've been getting raises).

Side Hustles

Side hustles are a great way to diversify your income streams and build a portfolio of income. You can think of them as the “extra” money you earn while doing something that makes you happy—outside your day job.

Side hustles are also incredibly fun, rewarding and flexible—you don't need any special skills or experience to start one! And they can be done part-time or full-time: there's no right answer here. Side hustles can be done from home (like blogging) or on the road (like selling your own products). You could even combine two different side hustles together into one full-time gig!

Passive Income Streams - Dividends, Interest, Rental Income

Passive income is a form of cash flow that isn't necessarily earned through your own hard work. It's earned without any direct efforts on your part and can be referred to as "passive" because it doesn't require you to be involved with the earning process in any way.

Dividends, interest and rental income are all examples of passive income streams. Dividends are awarded by companies like Apple or Google for their shares in these companies (in some cases).

Interest payments come from banks and other lenders who charge interest rates based on how they think they will profit off lending money out over time - so if you've got $100k sitting under your mattress then chances are there's going to be some interest coming out every month!

Rental properties also generate monthly rents which keep accumulating even after someone moves out - so again we're talking about a steady stream of profits over time without any real work required on behalf of the investor.

Real Estate

Real estate is one of the best and most reliable ways to build wealth. It can also be an excellent way to diversify your portfolio, but it's important that you learn how real estate works before jumping into this type of investment.

Real estate involves owning a piece of land or property—for example, an apartment building or house—as well as renting out rooms in those buildings at market rates (or higher). This means there are two things you need: cash flow (how much money comes in) and capital appreciation (how much value goes up). If both these factors are working together properly, then investing in real estate will lead to long-term success!

Financial Gains - Capital Gains, Trading/Investing

Capital Gains

Capital gains are profits from the sale of an asset. For example, if you bought a stock at $10 and sold it for $20 after 10 years, that's considered a capital gain because your original investment was worth more than what you got out of it in dividends and/or interest payments.

If you bought an apartment building with cash, then sold it after 15 years because there were no tenants living in it (no income), then again this is considered a capital gain because your original investment was worth more than what could be obtained from renting out that property or selling it outright through another entity like real estate agents or banks (which may take time).

Trading/Investing

Trading involves buying assets such as commodities such as gold bullion bars or forex currency pairs like USDJPY which can then be sold later at higher prices when demand increases due to market conditions changing rapidly due mostly likely being caused by something happening outside our control like political instability around world leaders etcetera!

There are five main income types.

There are five main income types. The first one is traditional employment, which accounts for the largest number of people in the United States. This includes full-time jobs, part-time jobs and contract work.

Side hustles can also be considered part of this category because they require little commitment from you but are still an important source of revenue for many people who have them as a secondary source of income. The next type we'll talk about is passive income—this refers to money earned by investing your money wisely or by having assets that generate regular returns on investment (like real estate).

Passive income can also be generated through other means such as royalties derived from your writing or music compositions; royalties received when someone licenses your book; licensing fees paid when someone uses an image or likeness from something you created (like an article); licensing rights purchased through copyrights; etc...

Finally, another way to make money is through financial gains such as dividends earned while owning stocks), interest earned on bank accounts/savings accounts where there's no need for additional work outside those hours spent managing finances every day."

Conclusion

We hope this article has helped you understand what these income streams are and their potential uses. However, if you want to learn more about any of the above topics or would like to speak with someone about how they can help develop your own profitable stream—please don't hesitate contact us today!