How do millionares make money and how can you?

Have you ever wondered how millionaires make their money and why it keeps growing despite soaring inflation and skyrocketing cost of living? 

Especially now, as most people are beginning to find that their jobs just aren't enough to cover their expenses, they wonder how they can increase their income with their limited time and nine-to-five jobs.

 According to Yahoo Finance, most millionaires have seven streams of income that they rely on to make their big bucks.

They are: 

1. Earned income

This is the income you earn from your job or paid employment. You're usually trading your time and skills for money. The biggest upside to earned income is that it is usually reliable and consistent and can cover your basic living expenses or parts of it.

2. Capital gains

This is the income you receive as the profit from selling assets, such as real estate, art, or cars.

3. Interest income

A common source of supplementary income, interest is usually generated from bank accounts and bonds. However, interest income is dependent upon inflation.

4. Dividend income

This is a type of passive income you can generate by owning stocks that pay dividends. Its upside is that it is profitable and acts as a partial buffer against declining prices of assets.

5. Rental income

This is income you can generate by renting out properties such as office buildings, houses, or apartments.

6. Business income

For many people trying to maximise their income, owning a business comes in handy.

There is unlimited earning potential from business income.

7. Royalty income

Intellectual property, such as trademarks, property, or patents, can help prove a reliable and steady source of income.

However, how much you earn is based on monthly sales.

That being said, it's important to remember that building these streams of income takes time.

You're not going to start making money from them immediately. Moreover, another way to make money if you feel these streams of income won't cut it for you, is to try a part-time job.

What part-time jobs can you try?

Here are some productive alternatives to make an extra $1000/month:

1. Use your skills

Are you good at writing, editing, graphic designing, or doing administrative tasks?

Whatever your skill is, you can monetise it by setting up freelance profiles on platforms such as Upwork and Fiverr.

2. Dog Walking

Even though everyone loves their pet, some pet owners, find it more convenient to pay someone to walk their dogs.

It’s super simple to get started with a dog walking job, all you need to do is sign up to one of the many dog walking apps such as Rover, Wag!, or Fetch and get started, Forbes wrote.

3. Become an Uber driver

Companies such as Uber, Lyft, and Gett — in Pakistan, you have Careem, inDrive, and Byeka — all hire self-employed drivers to give people rides to their chosen destinations.

The best part? You decide when and how long you work. If live in a big city and own your own car, this is a great way to earn an extra $1000 per month.

Protip: we know people who only pick rides to and from work in the vicinity of their offices. They say it helps them cover fuel costs.

4. Become a food delivery driver

As long as you've got a clean driving license, no criminal record, and a smartphone, this is one of the easiest part-time jobs to get— and you can start work immediately.

5. Become a handyman

If you know how to fix things around the house, hang pictures up, build some furniture, and fix your computers and televisions, you can always offer your services on a website such as www.craigslist.com, or www.taskrabbit.com.

In Pakistan, you can share your services via WhatsApp messages or social media posts.

If you reside find any of these don't apply to you, other options such as private tuitions, copy, and content writing are also extremely lucrative.

Teachers we have gotten in touch with say they make up to $400 for a month teaching tuition to kids 5 days a week. Depending on where you live, who you teach, and your level of expertise, you could do as much or more.

Just remember: a job is a job, even if it's a side hustle. You need to spend a couple of hours a day applying for work, or building your profile and portfolio if you’re considering taking the freelance route.