
The average millionaire has 7 income streams.
You’ve probably heard that quote before. It does sound pretty cool to have 7 income streams, but there is a real reason why millionaires have so many income sources: to diversify. If one disappears, you know you can rely on others to survive. If there’s a market crash, you know you can rely on your other income to survive. This is something most people don’t have. Most people have a job, and when there’s no job, they’re completely broke. Not a great situation to be in. 🙄
The best kind of income streams are the passive ones. The ones that generate money without you being in the middle. It’s also important to note that the 7 income streams of the average millionaire does not mean 7 different types, it means 7 different sources, e.g. 4 houses, 1 business and investments from dividends and interest.
The great thing is that if you’re in your twenties, now is the time to start building those income streams so you can enjoy them when you really do need the money. 💸 Here are 6 different types of income streams you can start working on now 😎
1. Freelance Side Hustle
Your side hustle may not be making much at the moment, but in a few years, the experience and skills you’ve built will allow you to create an online business or get higher value clients. Look at what Benjamin did: he started working as a freelancer for 2 years, learnt how to interact with clients and built the right skills. He then started an online business and hired employees to do his work! Now he spends 1-2 hours per day managing his business, and he’s 24!
You can do this too: start off by completing the 3 step method to figure out which side hustle/freelance gig would fit you best. Look for clients on sites such as Upwork and Freelancer and learn how to be professional. The key here is patience – in order for this to be a proper income source in the future, you do need to keep working at it for several years.
I have two freelance side hustles which I plan on producing an income in the future; my digital marketing freelance work and this blog. I don’t make much as a freelancer, and I don’t make anything with this blog, but the plan is to turn it into an income further on. 💁♀️
2. Investment Capital Gains
In your twenties, your investments won’t be generating much. But if you follow the 15% rule and keep investing every single month, your future self will enjoy a pretty snazzy income stream. As your investments use the power of compound interest, your nest egg grows. And suddenly investing £100 per month in your twenties generates £247,154.26 in your 60s. 😱
The thing about this income stream is that this is money you only receive once you sell your investments. For this reason, the stream is more useful if you’re going to reach financial independence or are retiring.
‘Retirement? I have plenty of time to plan for that!’
Nope. Nope you don’t. Start now and you’ll have even more in the future 😉. Oh and it only takes £100 per month.

3. Investment Dividends
For those who feel a bit more confident picking stocks and investing in specific companies, receiving dividends is another great possible income source. Put simply, if you invest in companies such as Coca Cola, they will give out money to their shareholders every month (at the moment they give out $0.4 per share). If you buy stock in several of these kinds of companies, you are essentially are receiving an income through these dividends.
It’s not as risky as it sounds – if you invest in dividend aristocrats (companies who have been paying increasing dividends for 25 years) it’s highly unlikely the company will go bust. We’re talking huge companies such as McDonald’s, Coca Cola, AT&T, etc.
That’s pretty sweet, the only nag is that you need a portfolio of at least £100,000 if you want to receive £1,000 per month in passive income. You’ll only be receiving pennies when you start out, which is why you need patience and consistency to build this passive income stream. Even more of a reason to start early!
4. Real estate
Of course I had to mention property investing. Buying property and renting it out is a great source of income to have. It’s a good diversification away from the stock market and can be very lucrative if done correctly 😎.
But you’re probably telling yourself: ‘How on Earth do you want me buy property in my twenties? I can’t even afford a car, let alone a house!‘
Chill. Yes, you do need a large initial investment. Yes you need to know what you’re doing. But that’s why it’s so great to start early – to start learning now!
Here are some ways you can get started with property investing now:
- Educating yourself with resources such as Bigger Pockets
- Building a good credit score early on
- Saving and investing the money for a down payment
- Hustling: checking out houses, learning about the market, going through the process with others
Learn about stuff such as the 1% rule, the best types of houses and areas to invest in and how a mortgage works. Research the best countries to invest in; many times you’ll get a better deal with higher returns elsewhere. Learn what Flag Theory is and how you can use it diversify over the globe. It may seem impossible, but if real estate investing really is an objective of yours, then it’s a matter of research and hustle 📚

5. Business
A business doesn’t have to mean renting an office, hiring employees, etc. An online business can be a great source of income. As mentioned in point 1, you can follow Benjamin’s path and build an online business after several years in the freelancing market. As you slowly build it up, you set up a system where the business is able to work without you, allowing you to stop exchanging time for money.
What is so great about a business is those last few words: stop exchanging time for money. By removing yourself from the equation , you are building a more passive income stream through automation and systems. This means you can scale and grow an online business much more easily than a freelancing gig. The more work you get, the more people you hire and more income flows in. Not bad, eh?
I’m not saying start an online business immediately, I’m saying build the skills now (that includes the skill of managing people), earn money as a freelancer so you can start that business in the future and treat it as another income stream. Think it’s not possible? Check out my interview with Benjamin 😉.
6. Online products
This could be courses, e-books, videos, etc. If you build a course on a site such as Udemy, it can generate a pretty sweet monthly income. Of course, you may reason that in your twenties you’re still in your skill-building phase and therefore don’t have much to teach others. However, you’d be surprised – that skill you are currently building is something that could be taught to others. And it’s a win win: you learn even more by teaching. 💯
Think of the different things you know enough to teach others, and then see if this is something you’d be willing to turn into a course or e-book. Another pretty sweet income stream 😛

Those are the 6 main income streams that you can really start building in your twenties. Obviously, there are others such as royalty payments, startup investments, property crowdfunding, etc, but these are harder to start building on early. Your twenties are for building the right skills and continuously saving and investing for the future. Work on 2 or 3 sources of income that interest you, and with patience and consistency you’ll see the fruits of your labour when you need them most: later.
Currently, I invest for capital gains in the stock market and in P2P loans, I earn a side hustle freelance income and a salary from a job. In the background, I’m working on two online businesses and constantly educate myself about property investing (having a podcast helps 😛).
Which income streams are you going to go for? 🧐