The 75 year old millionaire founder of Fraser Nation and author of the book Success Runs In Our Race breaks down the seven fundamental revenue streams everyone must have or at least aim to having, especially in the black community, which collectively are nowhere near economically included in comparison to other communities.
Dr Fraser gave an insight to the categories of income starting from what is perceived to be the bottom of the economic totem pole to the very apex.
His ethos?
There should be no black adults living today with only one stream of income. And if you want to know how not to only make money but most importantly keep it, pick up his books for a more elaborate understanding.
EARNED INCOME: This is pretty much the starting point and what it simply means is get a job. Earned income is really selling your time for money. Pay varies depending on skill set and this category is 99% employee based.
PROFIT INCOME: This is the income from buying and selling something, where he points out that black people love buying but detest selling goods as they would prefer security of a job to opportunity of a profit income.
INTEREST INCOME: This is the income of lending money. Although a little provocative and volatile as it may go against certain certain convictions but if you have the wherewithal to do it legitimately, I see no reason why not. If the banks can do it why can’t you?
DIVIDEND INCOME: This is the income from owning something that cannot be physically seen or touched. The most obvious example is stocks, shares and bonds. I know for a fact very few people know how it works. Shares is simply ownership, if you drink coca cola, wear Nike or you eat from McDonald’s, there is no reason not to own a piece of it.
RENTAL INCOME: Although the trajectory or buy in is a little steep, but this income is the number one source of cash flow. Put it in a company and get tremendous tax write off.
CAPITAL GAINS INCOME: Typical example of capital gains is your residential property. The home you live in is not an asset. It is a liability when you live in it and capital gains when it is sold. In other words, capital gains is simply defined as any asset that goes up in value with time, when it is sold the difference between what you paid for it and what it is eventually sold for is your capital gains.
ROYALTY INCOME: This by far the best form of passive or residual income. This is the income received from someone using your creativity, idea or brand. This sort of income never cease even when you are long dead and gone. For example if you want to open a KFC spot, you must first clear it with Colonel Sanders’ family and it does not come cheap.