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6 Amazing Income Streams Of The Wealthy

Income streams

How wealthy do you want to be? What do you know about income streams? You need to know streams of wealth to understand how you can become wealthy. These income streams applies everywhere in the world, including Nigeria. Because there are wealthy people all over the world, and the all of them follow the same streams.


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These income streams define how and what the wealthy make their money. And what income streams you fall into and how you might be on the path to wealth. Although, it’s not all income streams that may lead to wealth. Some just take you as far as being rich but you will never be wealthy if you continue on just that income stream.

This is what the wealthy knew that makes them decide how they invest their money better. And if you want to be wealthy, then you have to understand what income stream you currently fall into and what stream you should move into.

Also, look beyond your country of origin when investing in these streams of income. Like, if you live in Nigeria, look beyond Nigeria to invest. The internet has opened up every country through online investment potentials.

How Do The Wealthy Build Their Wealth?

If you want to know how wealth is made, these income streams will give you a much clearer idea. The wealthy invest for different reasons. Unless you understand their reasons you may not know how they invest.

I once heard about an older gentleman who invested so much in properties. His plan was simple, when he’s old, he will use the properties to take care of his wife and himself till they die. It may seem selfish but that was his plan that lead to his investment.

When you have a reason for investment, it will inform the kind of income streams you will adopt. These 6 income streams covers from beginners up to the very rich and powerful.

If you want to be a Warren Buffet, you will find an income stream that will work for you. Also, everyone belong to an income stream. If by mistake you didn’t find yourself belonging to any of these 6 income streams, that means you are either a student with zero income or currently unemployed and without unemployment benefit.

{1} Earned Income Stream

Simply put, earned income is income earned from a job or business. If you have a job or operate a business you fall into this category of income stream. However, earned income can be extended to include income from self employment, unemployment benefits, retirement income, etcetera.

The importance of knowing what’s earned income is to help you consciously channel what you earn into building multiple streams of income and growing your wealth. Earned income is like a startup capital the wealthy use to build their wealth. You should use your earned income to build other income streams.

What Qualifies as Earned Income?

You also need to know what qualifies as an earned income. When you filling your annual tax, your earned income should include all Gross income from employment, and net earnings from self-employment. As well as business income, if you are a business owner that didn’t fall within the category of self employment.

Examples of earned income are:

  • Wages
  • Salaries
  • Tips
  • Taxable employee compensation
  • Commissions
  • Bonuses
  • Retirement income
  • Social security
  • Unemployment benefits
  • Alimony
  • Child support

{2} Profit Income Stream

Profit income is a kind of income you earn from buying and selling. Any such transaction that strictly involves buying or selling is categorized as profit income. And if you are involved in buying or selling or both, what you earn from it is categorized as profit income.

Since most other income streams may also involve some buying or selling, the best way to classify profit income is to explain it as merchandizing. This describes such business that is primarily buying and selling as the focus of the income.

When you either buy or sell anything simply for the sole purpose of making profit, it’s the. categorized as profit income.

{3} Interest Income Stream

Another amazing income stream is interest income. This kind of income is derived from lending to someone for a certified period, with an agreed interest to be paid for the same period.

This is different from rental income, where the income comes from a rented item or property. A good example of lending is bank loans. When you need to borrow, a bank lends you money after your application for loan is reviewed and granted. Other methods of lending is mortgage brokers and peer-to-peer lending services.

Also, your savings are categorized as an income stream under interest.

Types of Savings Interest Income:

  • Basic savings accounts
  • Online savings accounts
  • Money market accounts
  • Certificates of deposit
  • Interest checking
  • Specialty accounts

{4} Dividend Income Stream

Dividend income is part of a company’s earnings distributed to shareholders from stocks or mutual funds you own. This forth income stream is derived from stocks. This is a major income stream for the wealthy. They buy up stocks of major companies and earns dividend from their profits over time.

The word dividend is akin to the word divide. The earnings from a company is being divided to multiple shareholders, but according to individual stock contributions.

Types of Dividend Income:

  1. Cash dividend.
  2. Stock dividend
  3. Property dividend
  4. Scrip dividend
  5. Liquidating dividend

{5} Rental Income Stream

One of the amazing income streams is rental income. This kind of income comes from renting properties. It’s defined as any payment you received for the use of a property. Rental income is derived from rent payment that tenants pay monthly to cover their rent.

However, rental income is not restricted to land property alone. Any kind of property can be rented. For example, car rental is also a part of rental income. Anything that can be rented out to users and rent is paid for its usage, qualifies as a rental income.

Small Business Trends gave us 50 rental business ideas you can start. These ideas represents other rental businesses including lands and buildings type of rentals. Here is a few of the ideas listed here. You can read the rest of the 50 on their website.

50 Awesome Small Business Ideas in the Rental Niche

  1. Bicycle rental
  2. Car rental
  3. Party rental
  4. Storage rental
  5. Sporting goods rental
  6. Tools rental
  7. Camp equipment rental
  8. Boat rental
  9. Furniture rental
  10. Chair rental
  11. Tent rental
  12. Mobile toilet rental
  13. Generator set rental

Tips to Start a Rental Business:

  • Get some experience in the type of property you plan to rent
  • Register your rental business
  • Set up your office, at home or get an office space
  • Write a business plan
  • Promote your rental business online and offline
  • Start with the right rent price for your type of property

{6} Capital Gains Stream

However, the most amazing of all the income streams is capital gain income. This kind of income is from increase in value of something. It could be value if a property, or stocks or mutual fund. Anything that has the capacity to increase in value over a period is capital gain income.

Capital gain means a rise in value of a capital asset. The asset that gives a higher value than the purchase price when it’s sold. Capital gains are both short and long term. When it’s just a year or less, it’s short term. But if it’s more than a year that makes it long term gain.

Moreover, there’s huge gain when you keep an investment for a longer period. Apart from the increase in value overtime, it also reduces the amount of tax due for payment when it’s finally sold off.


If you dream about multiple income streams, I have covered all the 6 categories to pick from. You can start by implementing any of the income streams here.

I particularly love the 6th income stream. It’s the sweetest and the easiest to gain from. This kind of income is derived mostly from what you already owned or invested in. You reap from its increased value overtime. Like a land property, which appreciates in value over time.

One thing you must pay attention to, is where you are now in your income stream. Once you identify where you are, then plot where you want to be in the next 5 years, 10 years or even 20 to 50 years from now. Think of income streams as a long term investment plan.

Chinedu David
About The Author: Chinedu David An inspiring writer with several years of experience in journalism, consulting and training. Worked with Success Digest magazine for over a decade. Founded MyStore - an online store in 2013. Trained several startup entrepreneurs in telecom sector, LPG (oil & gas), and on Cryptocurrency investment. A born again christian, who's committed to spreading the gospel of Jesus Christ with passion. Drop a comment below and he will respond to your query. He can also be reached via email: or Call/Text/WhatsApp: 07087770518
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