How does a millionaire maintain their wealth?
Written by konex on 13 December 2021
If you won the jackpot in the lottery tomorrow, what would you do? Many people would think about quitting their job and go on a well-deserved vacation. We would not begrudge anyone for enjoying the windfall, but unless you have some discipline, the fun could be short lived. In fact, it could only be a matter of time before you are right back where you started and, in some instances, in a worse position than before the lottery was struck.
So, this begs the question – have you ever wondered how a millionaire keeps their wealth?
Sure, there are a number of tricks that can be learned for being tax efficient; which we will not go into. What we want to explore is how they earn income. Did you know that most millionaires average between 3 to 7 forms of income? How does that compare to your friends’ and family’s situation?
Believe it or not, there are many ways to earn passive income – some are easy, and others are a little challenging. In our previous article, we touched on the topic of passive income in the cryptocurrency space, highlighting the examples of crypto mining, staking, and depositing assets on an interest-earning platform. There is also DeFi and NFTs. (Just quickly on NFTs, if you have some talent as an artist, you could create art and mint it as an NFT to sell. The konex team walked everyone through this process during a podcast in early September.)
However, there are also many ways to earn income in a more traditional sense. Naturally the primary method of earning income for most people is through their salary or wages. You would be surprised to know that many millionaires still work for a company, even though they have a very healthy bank account. Some may also have a part time job or a side hustle to bring in extra income. Other sources of income include:
- Rental income
- Investments such as stocks, dividends
- Having a bank account where they earn interest or can put money aside in a term deposit
- Profits from businesses they own
There are also less conventional ways to generate income such as:
- Buying/importing goods from a country or region where the product is cheap and then selling it in a place that values this good at a higher price
- Sell things you own on eBay
- YouTube or influencing on another social media channel
You can see that if you have an aspiration to become a millionaire, there are many diverse ways of earning income. By themselves, some of these ways might not be able to support you, but if you keep working at it, these revenue streams could grow into something that’s big enough to sustain your style of living. The key thing is that you need time and motivation in order to set some of these revenue streams up, and then in 5-10 years, you will be able to reap the benefits.
konex is very interested in helping you take control of your work/life balance by providing you with a side hustle. We have over one thousand open job positions on our platform, and if you were able to introduce your job seeking friend to just one of these roles, then you would receive a reward if they get hired – and receiving bitcoin is an option! If you received bitcoin, then you can consider looking into some of the passive income methods we discussed.
Feel free to check out some of the positions our partners are advertising with us now and see if there is a suitable role for your job seeking friend that you can introduce them to!