The Level Up Letter - Vol. 32 - Income Streams

Understand where and how to find more income

Author

Better Board Meeting
July 26, 2024

THE LEVEL UP LETTER

Hi All!
This week’s Level Up Letter is all about income streams. There are 7 different types and we wanted to share them with you just in case you were thinking about diversifying…… Let’s go!

QUOTE OF THE WEEK

THE SEVEN INCOME STREAMS

1. Earned Income
This is income earned through a job or employment, where you receive a regular paycheck in exchange for your work and services. Standard w2 work.

How to make more $: Negotiate a raise. Get a second job.

2. Rental Income
Rental income is earned by leasing or renting out a property that you own. It could be real estate, cars, equipment or something like our new favorite, domain names. You receive regular payments from tenants/lessee in exchange for the use of your property.

How to make more $: Buy assets and lease them out.

3. Dividend Income
Dividend income is generated from owning shares of stock in a company. When a company distributes a portion of its profits to its shareholders, it is known as a dividend. Dividends are typically paid out regularly, often quarterly, and can be in the form of cash or additional shares of stock.

How to make more $: Buy stocks/index funds that have dividends

4. Capital Gains
Capital gains are profits earned from selling an asset, such as stocks, real estate, or valuable collectibles, at a higher price than the original purchase price. The difference between the purchase and sale price represents the capital gain.

How to make more $: Sell off assets you already have. Flip a house, a car, art/collectibles

5. Royalties and Licensing
Royalties are payments received for the use of your intellectual property, such as copyrights, patents, or trademarks. This income stream is common for authors, musicians, artists, and inventors who license their work to others.

How to make more $: Work with a publisher or licensing agent to get royalties on your book, music, art or business patents.

6. Interest Income
Interest income is earned through the interest payments received on loans or investments. When you lend money to someone or deposit funds into a savings account, you may earn interest on the principal amount.

How to make more $: Lend money to house flippers, businesses etc. (Solo 401ks and Self-Directed IRAs are great tools to look into for this)

7. Business Income
This refers to income generated from operating your own business or being self-employed. It includes profits from sales, services rendered, or any other business activities.

How to make more $: Start your own business or side hustle. Provide value and charge for it.

LOOK AROUND

Now that you know all seven, we challenge you to start noticing them in your day to day life. That song on the commercial you just watched was a license. Are the contractors in your neighborhood renting equipment? Do they own it? When you hear about a company in the news, what does that mean for their shareholders and their dividends?

Money and opportunity are around us all the time. If you start to notice it, it might just spark a creative way for you to earn more.

LET’S MAKE MORE TOGETHER

We love talking business, investing, real estate and side hustles. We want all of our BBM Members to get the most out of their life and their businesses. The best way to do that is by having a support system around you. If you’re looking to start something or need help in your business, let’s chat!