The most powerful form of wealth‐building today isn't about earning a paycheck; it's about what you know.

— T. Harv Eker

I received both a high school and college education that emphasized the importance of finding one source of reliable income. It was subliminally marketed to us from the moment we sat down in high school economics class, to when the political science department at my college anxiously asked me where I “planned to work” after graduation so they could boast about the success of their students to other professors.

The idea of pursuing not one, not two, but multiple streams of income was nowhere to be found. If someone had suggested such a thing, both the class and the educators would have probably snickered. I caused a lot of snickering in my college classes for going against the grain. My alternative approach to political philosophy and the study of history was sometimes welcomed—only if it fit the narrative of the professor. Watching my curiosity annoy quite a few educators told me something powerful: I was teetering on the edge of discovering something big. Questioning the working world for its obsession with just one stream of income unknowingly launched me into the world of freelancing. It's funny when you can reflect on all of it years later, seeing that nothing, ever, is a coincidence.

As I learned more and more about this remote working economy and the potential of taking on a side hustle, I began to read a lot of books. At some point in their pages, they would all reference this “seven streams of income” rule. I would think to myself: “Wow, seven?!” And here I thought I was a revolutionary for suggesting the average person pursue two to three streams of income.

Just think of how stark of a contrast that is, when you compare just one stream of income to seven. No wonder millionaires and billionaires end up pulling further and further ahead of the average person with their wealth accumulation. I realized these people don't play by the same set of rules as most of the population. But I didn't sit there and hate them for it. I figured, “Wow, these people know something I don't, and it's clearly working for them.” Let's see what it's all about (shifting your mind into a place where you pause and react with rationality—before emotional resentment kicks in—will do wonders for you in the world of business).

It was this very inspiration that motivated me to try out my first few additional streams of income to freelancing on Fiverr. It started with my ebooks, and moved its way into online courses, content creation, and well, you know the rest. The more streams of income I added, the more confident I felt that I would never face a situation in which the flow of money just “disappeared.” I had that same fear, too, starting out as a freelancer, relying just on Fiverr. But as my income streams surpassed five, and then seven, and then 10, I began to realize the more diversified and extensive your income sources are, the more invincible you will become. And so began my obsession with telling every person I can about the seven streams of income rule.

How Do We Know the Average Millionaire Has Seven Streams of Income?

The IRS decided to get to the bottom of what makes the average millionaire by conducting a study that reviewed tax returns from the years 1996 to 2002 (Bourne and Rosenmerkel n.d.). The IRS looked at a sample of 6,053 individuals who died during this time period, while also factoring in the work of Tom Corley, who studied millionaires as well, during a five‐year period.

The IRS found that wealthy people build up to seven streams of income to diversify their money, create tax shelters, and protect themselves against unforeseen market changes. Diversified income would ensure that if one or two income streams were taken out by a market collapse or dissolution, the other remaining streams of income could pick up the slack. Tax shelters, or legal ways to withhold having to pay tax on earned income by way of real estate and investing, were another motive for the multiple streams of income. If one business reported a gain, and the other a loss, or by way of depreciation in real estate investments, the person would be able to lower their final taxable income for that year. Lastly, millionaires had weathered their fair share of market changes and knew how to guard against them.

I have attempted to conduct similar studies through polls in my Instagram Stories. I have come to similar conclusions, finding that almost every person under the age of 30 who classifies themselves as a millionaire on my social media has at least seven streams of income. And, when considering that this study looked at a time frame a couple of decades ago, I would be willing to bet the income stream number has increased drastically with the arrival of AI and automation. One business, like making content on social media, can generate multiple income streams (course sales, ebook sales, affiliate links, sponsorships, ad revenue, and so on).

What Are the Seven Streams of Income?

I have mainly focused on active and passive income for the purposes of this book. But that does not encapsulate every form of income in the world. In this same study done by the IRS, they broke down the different forms of income they observed in wealthy individuals’ tax returns. They are as follows:

1. Investment income: income from stocks owned.
2. Earned income: payments from employment.
3. Rental income: rental payments from tenants.
4. Royalty income: payments from selling rights to use something that has been created or invented.
5. Capital gains: from selling appreciated assets.
6. Profits: income after expenses were accounted for in any kind of business.
7. Interest income: money that's accrued from bonds, CDs, or other forms of lending.

Currently, I own investment income, rental income, royalty income, soon‐to‐be capital gains, and profits. But I have multiple forms of profits coming from different corners of the internet. Profit was my first form of income on my own. I soon added on investment income, then royalty income, followed now by rental and capital gains.

You do not have to follow or mimic how I have chosen to diversify my income. There is no one right way to do it. But the studies do not lie: diversifying how and where your money comes from is a commonality among all successful financial freedom aficionados.

How to Get Started Chasing the Lucky Seven

As mentioned, there are many different paths to hitting that lucky number seven, and no single one is the “ultimate” right way to make it happen. I can only go over how I was able to make it happen for myself, since I can vouch for its success and effectiveness. The following pursuit of the seven streams lines up perfectly with the structure of this book, starting with freelancing, and then side hustles, followed by investing.

• Step 1: Prioritize Earned Income and Profits

  I went down the profits route by opening a Fiverr account and scaling it as quickly as possible. In your case, that may be working as a freelancer for an already established agency, thereby qualifying you as an employee. You could also possibly work for an agency and freelance using a platform on the side. There are far fewer rules in the remote work economy—and that's why I love it. Work on opening two to three different forms of income in this first step.

• Step 2: Investment Time

  Once you really hit your profitable flow, set some of that money aside and invest it. Place it in accounts, real estate, cryptocurrencies … wherever you feel called. Just make sure it's making you some money every month without ever having to touch it.

• Step 3: Double Up with Royalties

  Royalty income embodies most passive income today. This should be a huge focus of yours for financial freedom. I consider my courses to be royalty income, since I charge a subscription price every month to give people access to the courses until they decide to cancel their membership. This is where you stop trading time for money, along with your investment income, to really start to build out that empire.

• Step 4: Rental Income and Capital Gains

  I have been investing in real estate for the multitude of monetary and tax benefits that comes with it. Depreciation can lower your taxable income, appreciation can increase the amount of money you will get when you sell the property down the line, rental income can become highly passive if you opt to use a management company, and overall real estate comes with more tax breaks than I should probably explain since I am not a CPA.

• Step 5: Consider Interest Income

  Last, as for interest income, although I do not currently pursue this type of income, that does not mean you should avoid it. Try it out at steps 2–4 and see what it can do for you. There is no harm in having a desire to build out your business and expand where your money comes from.

Our society has demonized this in recent years as being greedy or capitalist of you. It's merely leveraging from the systems in place and working with a tax code that rewards the creation of businesses, jobs, and housing. There is nothing wrong with wanting more for yourself and to create a reality in which you live free from money woes. We all want to break out of the matrix, but we must be pragmatic to make that a reality.

Before I wrap this book up, I want to touch on a very important concept, especially in the social and spiritual realm. While you are in hot pursuit to become a beacon of hope in the world of financial freedom, you are going to need a community that supports you. You are not meant to do any of this alone. What's the point of total financial freedom if you can't share it with the people who mean the most to you? Let's look at building your financial freedom tribe.

Chapter 25 Key Points

• The IRS confirmed that the average millionaire has at least seven streams of income.
• There are seven very different kinds of income that, when combined, can set you financially free.
• There is no one right way to diversify your income—if you pursue diversification altogether, you will be all set.
• Remember to take your time and invest your money in a way that feels right to you.