According to the IRS, most millionaires have these seven income streams:
1. Dividend income from stocks.
2. Earned income from a paycheck.
3. Rental income from real estate.
4. Royalties from products or license agreements.
5. Capital gains from the sale of investments.
6. Profits from business ventures.
7. Interest from savings, CDs, bonds, or other lending activities.
I would argue that most people have only tapped into three of these seven: earned income, dividends, and interest.
They spend their time earning a paycheck, saving what they can from that paycheck, and then investing the difference in hopes of making a return so they can reinvest and steadily grow their net worth.