7 Streams of Income: The Secret To Becoming a Millionaire

When I started my dental specialty practice back in 2005, I was laser-focused on just one thing: getting more patients.

New referrals were my lifeline. Everything depended on that one income stream—my practice.

At the time, I didn’t think much of it. Most of us don’t. In school, nobody teaches you how to build financial security. They teach you how to work a full-time job, make a good living, and stay in the game for 35+ years.

But one ski trip changed that for me. A simple wrist injury nearly took out my only source of income.

No patients = no money.

That’s when I realized something: if I didn’t build more ways for money to come in, my future was completely exposed.

From the Rat Race to Reality

Most high-income professionals are stuck in the rat race. Not because they’re lazy or irresponsible—but because they never learned to create various income sources.

If you’re relying on just one paycheck, you’re at risk.
Even if that paycheck is six figures.

I started digging into how wealthy individuals actually build wealth—and I discovered a simple truth: they don’t rely on one stream of income. Most of them have seven.

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3 Types Of Income

Before we go any further, you should first realize that when it comes to making money, there are only three types of income:

• Active (earned) income
• Passive income
• Portfolio income

#1. Active(Earned) income

This is money you get from working (your job, business, or clinical work).

This type of income is also the most heavily taxed of the three types.

Unfortunately, most people go through their entire careers with only one income source as this is the most common way we’re taught to earn a living. 

If you earn active income ONLY, you’re trading your amount of time for money. 

#2. Passive income

This type of income is what I’m mainly focused on growing. The best part is that it’s NOT directly tied to active work performed.

Sounds pretty cool, right?

But realize that it has to come from somewhere. And that somewhere is typically the active income from the work you do.

In other words, Dr. A treats patients and makes an annual salary. Instead of spending MORE than he makes (like many docs do), he focuses on investing in assets that will provide extra cash to pay for his liabilities down the road (i.e. mobile home parks, RV parks, etc.). 

The I-R-S states that passive income streams are derived from:

• rental properties
• limited partnership
• or other enterprise in which one is not actively involved

#3. Portfolio income

The third type of income is portfolio income and profits from things like stocks, exchange-traded funds, or real estate investment trusts (REITs).

Multiple Streams of Income

After my skiing accident, I began to study how millionaires make their money.

One of the things that stood out to me was the fact that most millionaires had multiple income streams.

At that time, I had ONLY one.

Not good. 

“If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffett

I guess we really should NOT keep all of our eggs in one basket. 

I understand that this idea of having new income streams sounds like a great way to live.

But many people go through life and struggle to try and figure out how to create a single income stream, let alone more than one.

Starting out, I felt this same way until I started studying what the most successful people were doing.

It seems that many were learning from the same resources, such as books, podcasts, and courses.

Two of the more popular books were:

• Rich Dad Poor Dad
• The Millionaire Fastlane

These different resources began to open my eyes to how I could get money to start working for ME instead of the other way around. 

Now that we’ve discussed the 3 types of incomes and how important it is to NOT operate your financial life on relying on only ONE source, let’s get into what we’ve all been waiting for…..the 7 income streams of millionaires.

What Are The 7 Streams of Income?

#1. Earned Income

This is what you make from your job—whether that’s seeing patients, managing a practice, or working in a hospital. It’s the most common and the most heavily taxed.

It’s also the income most dependent on time and effort. If you stop working, the money stops too.

In other words, either as an employee or self-employed individual, you have to trade your time for money in order to receive it.

Related article: The Importance of Time Value of Money

Now, there’s nothing wrong with this as it’s the first source of income that most self-made millionaires have.

You got to start somewhere, right?

But again, it’s also risky to go through your entire career relying on active income as the ONLY source for your family.

Also, while some jobs/careers pay well, it’s going to be very difficult to retire from one income stream as opposed to multiple streams of income. 

Don’t get me wrong. I’m not saying it can’t be done.

I’m looking out for you!

What I AM trying to say is that you should consider earned income as a way to build up other sources of income based on the other options below.

#2. Business or Profit Income

Have a side hustle? A dental product? A YouTube channel? Run CE courses through an online platform?

Money you earn from business operations outside of your main job falls into this category. Unlike earned income, there’s no cap. The more value you create, the more you can make.

Think:

• Running an online course
• Launching an online store
• Creating digital products like eBooks or templates
• Building a mobile app or affiliate marketing site

Many of these start with initial effort, but the earning potential can grow long-term.

#3. Interest Income

This comes from lending money or holding funds in things like:

• High-yield savings accounts
• Certificates of deposit (CDs)
• Corporate bonds
• Government bonds
• Municipal bonds

The interest might seem small, but in times of higher interest rates, this income stream becomes more valuable.

It’s low-effort and relatively low-risk, perfect for maintaining financial stability.

#4. Dividend Income

When you invest in dividend-paying stocks or funds, you get a cut of the company’s profits. This is portfolio income, and it grows over time.

Whether you’re investing in the stock market, REITs, or stock dividends, you’re getting paid simply for owning the asset.

This is also why many use exchange-traded funds and dividend reinvestment to boost their wealth slowly—but consistently.

#5. Rental Income

One of the most popular income streams that millionaires posses is rental income. 

Property owners earn rental income each month, often with tax advantages like depreciation and write-offs for property taxes and maintenance.

You can go active (landlord) or passive (hire property managers or invest in syndications like I do).

Real estate comes with big risks but also higher returns, especially when done right with proper investment strategy and due diligence.

And during economic downturns, hard assets like real estate often hold their value better than the market.

#6. Capital Gains

Whenever you sell an asset such as a stock or your home, that difference between the amount you purchased it for and the amount it sold for is the capital gains.

For example, if you purchased a home for $200,000 and sold it three years later for $250,000, the capital gain would be $50,000.

This type of income is subject to either long or short term capital gains tax. 

Typically, if you hold an asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.

#7. Royalties or Licensing Income

This income comes from your intellectual property—things you create that other people want to use.

Examples:

• Music or photography
• Inventions
• Digital downloads
• Licensing a course or idea to someone else
• Even writing for affiliate marketing platforms

Today, more people than ever make royalty income from social media, online business, and platforms like Amazon KDP or Teachable.

It’s a great stream to build once and get paid on your own terms.

3 Benefits of Having 7 Income Streams

#1. Risk protection

Whenever you set up your financial life to have income hitting your accounts from multiple different sources, it helps to lower risk.

This is why Dave Ramsey recommends investing in mutual funds vs single stocks.

If stocks in a mutual fund go down in value, there are others that can increase in price, thus helping keep the price from tanking. 

Regarding your income, the same scenario rings true.

We saw this play out first-hand in early 2020 when the world began shutting down.

Those of us who had only one income stream learned quickly that something needed to be done moving forward in order to keep money coming in no matter what happens. 

#2. Pay off debt quickly

When you’ve got extra cash coming in from different streams, it’s the best way to attack debt.

It’s like having multiple sources of water putting out your financial fires.

#3. Total freedom

Want to retire early? Cut back? Spend more time with your family?

Multiple income streams give you options.

You don’t need to wait until 65 to enjoy your life.
You just need to build enough money coming in from the right sources.

BONUS: How to Start Building Your 7 Streams

You don’t need to build all 7 at once.

Start with what you know. Use your high salary from clinical work to invest in rental properties, build a YouTube channel, or launch a side hustle.

Look into peer lending platforms, learn about p lending, or explore online business models.

And most importantly—commit to consistent action.

Bottom Line

If I hadn’t injured my wrist, I might never have learned any of this.
But that injury was a gift—it forced me to wake up.

You don’t need to get hurt to start building your future. You just need to start.

The 7 streams of income model isn’t a trend—it’s how real wealth is built.
Not overnight. Not without initial investment.
But slowly, smartly, and sustainably.

Let’s get to work.

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