The average millionaire has 7 streams of income...

[WEL]

I don't know if this is true but I read it on a pretty reputable PF blog. Does you think it's true? How many streams of income do the millionaires you know have? I think this kind of defy's the rule I've heard from people like Napoleon Hill who say to put all your eggs in one basket and protect that basket. So I don't know if it's better to diversify or become an expert...

[Fishindude77]

Big believer in having multiple streams of income.
When you accumulate some money, invest it and put it to work somehow so it continues to generate income while preserving the base amount.

[bjl584]

You should definitely diversify and create as many streams of income as possible. Whether it be dividends from stocks or from real estate, multiple income streams is definitely a good way to build wealth.

[james.hendrickson]

I think this is basically correct. Millionaires tend to have small businesses, own rental real estate, have stocks and other assets.

[clatoden99]

I have heard the answer is 7, and it sounds about right but depends on how you analyse the number.
No clarification to whether you would count 5 residential rental properties, one commercial rental and a land lease as 7 streams of income, or one stream of real estate income?
In any case, the short answer is that most wealthy people that are currently growing their wealth have multiple streams of income. I clarify this because there are many people that are born into wealth that only know how to spend, not earn or create.
Another thing to consider is this. I know people who are technically millionaires in the sense that they earn a million dollars a year in income. This, to me, looks like the most stressful and uncomfortable lifestyle I have ever seen.
For one thing, this is their only stream. They are in the 1% and are completely reliant on one thing for their entire livelihood. It's a combination of spending every waking minute thinking about this one thing, and also trying to enjoy the life they believe most millionaires live by spending too much.
It's a scary combination to see. They spend too much on stuff they don't need, and then spend too much of their time on a career they grow to hate, mostly because they end up having to work just to pay for the things they already bought.
Others I see would not be considered 'millionaires' but have a few streams of passive income and all the time in the world to do as they please.
Technically one is a millionaire and the other is not, but only one has the lifestyle I prefer.
Another pro that comes with multiple streams of income is that you can make money in almost any market If you are diversified and patient. Sure, your income might drop, but getting fired from a high paying job brings you down to zero. Owning a bunch of dividend paying stocks that have to cut their dividend just lowers your income for a bit.
It is definitely a mindset though. Some people can only think one way, some think a different way, and a few are able to see both sides.
I would always prefer to work on a project that eventually doesn't need me anymore to produce income, and then move on to the next one.
When you are in your early 20's starting a real estate investment company and all your friends are getting high-paying jobs with benefits, it can be tough.
But a decade later when you now have multiple companies producing income as well as diversified asset portfolio and at best your friends have doubled their salaries, that's when the payoff hits.
I don't say this as a means to try and out-earn your friends. I mean this to show an example that you can only earn so much income by selling your time to an employer. But creating multiple streams allows you to leverage your time to produce much more value.

[FLA]

I couldn't keep track of 7 streams of income. With work gone, I'm still just heavily invested in an aggressive portfolio with four Index Funds. Willing to ride out storms. When my EF gets past 20k, I'm going to look for some taxable investments. I guess that makes me an all your eggs in one basket type. Has worked so far.

I did think of renting out the town house I sold, rent would've covered the mortgage and a good chunk of taxes. But I did not want the responsibility of finding good tenants and having to be on alert for things that go south and need major repairs. If I had been married I'd probably have taken that risk.

[Calacola]

I am not a milionaire so I am can not comfirm this info but I thing it can be true because if you ant to earn milions you must to invest in different projects.

[FrankFacts]

Honestly, most people with large earnings aren't really earning it through traditional "income." You can only make so much money in a 9-5 job. They're more likely to be earning this money through business ventures -- whether online or investments or whatever.

[Gailete]

I'm no millionaire by a long shot, but we are making our income from at least 8 income streams was well as some tiny creeks that spit out money once in a while I also have some long term things set up that save tiny bits of money yearly that adds up to about $100/year/ Doesn't sound like much, but that is $100 every year that we don't have to earn. Sort of a reverse income stream. On that same thought line, I consider paying bills on line and saving the price of stamps one of those tiny things that saves us money yearly. Maybe only $40-50/year but yet again money you don't have to earn.

[ExcuseMyIgnorance]

If the income stream is mostly passive - that is, if its stocks or bonds, you don't necessarily need to put a whole lot of management time into it. Also, some income streams, like royalties from book sales managed by a publisher, can be pretty much out of your control - so you couldn't mange those even if you wanted to.