Billionaires are said to have 7 source of income.

1)  EARNED INCOME

      Earned income is the money that you earn by doing something or by spending your time earning like a day job. It is the source of income where billionaires focus less because they prefer passive income more than earned income. You have to give your time to make money, average people focuses on earned income.

No one has ever become rich by depending upon earned income, you're paid less by working more. Rich people first focuses on other six sources of income rather than this one.


2)  PROFIT INCOME

     Money that you earn by selling something for more than it cost you to make is called profit income. Rich people first make their product at low cost and then they sell it at high price to earn profit.

Many youngsters who are new and want to earn profit by selling prducts than you can make some money starting dropshipping business (online business) with less than 100$ or you can sell Amazon or Flipcart products online and earn commission.


3)  INTEREST INCOME

 
 The money you get as result of lending your money to someone else is called interest income. Many people lends their money to others and earn high interest on their money. Warren Buffett also do the same, he lend his money to many banks.

You don't need a huge amount of money to lend, you can start it with few amounts too. You can lend your money to your friends, neighbours or anyone else who need money and charge interest.


4)  DIVIDEND INCOME

 

   The money earned from stocks dividend is called dividend income. It is the income which made Warren Buffett world 3rd richest man. He makes 3.4 billion dollars every year only from his five dividends. It is the source of creating massive passive income, you don't have to work day and night, this type of income you can make while sleeping. Just you have to do is to gain knowledge on investment and then invest your money in stocks.

Their are many apps which can help you to teach trading like IQ Brooker app which are made  specially for beginners.


5)   RENTAL INCOME

      The money that you get as a result of renting out an assets that you have, like house or a building is called rental income. Rich people either buy or built houses and lend it to get monthly income.


6)   ROYALTY INCOME.

      The money you get as a result of letting someone use your product,Ideas or processes is called royalty income. For example: if you own a shop and someone want to open another shop by taking your shop name (as a Franchise) than he will pay you a amount for shop's name (according to the agreement). This is royalty income. Same was happened with Mc Donald.


7)   CAPITAL GAIN.

      The money that you get as a result of increase in value of an assets that you own is called capital gain. House, building, lands, Mutual fund, bonds and stock are some example of assets. The gain is not realized until the assets is sold at higher price than its purchased price.