actually published their research on high income tax returns to study the distribution of economic well-being or in other words they wanted to know why some people made more money than others and what they found is that generally the more income streams you have the more income you tend to make so when you see that NUMBER_TOKEN of millionaires have three or more sources of income i would take that into consideration and do your best to diversify as much as you can now if you're curious which income streams are the most common for millionaires mentioned in the study the main income source was derived from a job or earned income from a paycheck this is where almost everybody starts off and it's the equivalent of you working a normal NUMBER_TOKEN to NUMBER_TOKEN job or being paid a salary or working on commission is the main source of income for most people this is the cash cow that makes everything else possible and funds the remaining income sources like number two dividend income this is probably the easiest second income source that pretty much everyone watching could start literally right now and it's as simple as this go to any free stock trading brokerage like public down below in the description because they will give you a free stock worth all the way up to a thousand dollars when you use the code gram then go and buy any dividend stock out there and bam you're done depending on what you buy dividends could range anywhere from point six percent if you're investing in apple to seven point six percent if you're buying a t generally the higher the dividend the more risk you take but you can even throw it in something like a broad index fund like the phi fix which pays you NUMBER_TOKEN percent a year the third closely related to that is capital gains this is what happens when you sell an investment for profit and the amount of money you make is what's called your capital gain and even better if you hold that investment for longer than a year it's going to be taxed at long-term capital gains rates which is a lot lower than the taxes you pay from actively working and if you make under NUMBER_TOKEN NUMBER_TOKEN a year the long-term capital gains tax rate you will pay is zero percent the fourth and other income source could be interest income this is what happens when you keep your money in a high yield savings account or pretty much any bank account that pays you interest at the end of the year they will issue you a NUMBER_TOKEN interest form that you report to the irs as another source of income a fifth once you start earning enough money you could also branch out to this one and that would be rental income now personally this is my favorite from the entire list and it's where i placed most of my focus throughout the last NUMBER_TOKEN years in terms of buying properties fixing them up and then renting them out for cash flow for most people who want to invest their money and build wealth real estate has so many tax advantages that make it very unique and profitable for anyone who wants to spend their time learning how to do this for example if the property goes up in value over time that could be long-term capital gains if you sell it if you rent your property out for a profit that would be rental income and then you could reinvest your profits back into the stock market to make even more money i've also seen so many articles out there that claim that NUMBER_TOKEN percent of millionaires are invested in real estate and even though i can't find any studies to back this up i would not be surprised if quite a few millionaires hold some of their wealth and real estate as a way to hedge inflation
START_SPONSOR_TOKEN like public down below in the description because they will give you a free stock worth all the way up to a thousand dollars when you use the code gram END_SPONSOR_TOKEN