7 Types of Income Streams to Consider in Kenya

There are several types of Income streams through which people earn money. Seven of them are discussed in this write-up.

Increasing the variety of sources of income is now a crucial tactic in pursuing success and financial independence. Even though having just one job can give security, it’s frequently insufficient to build wealth and become a billionaire.

That’s when the idea of having several sources of income becomes relevant. The average millionaire, as the cliché goes, has seven sources of income.

We’ll examine seven different types of income streams in this post and see how they can help you reach your goal of becoming a millionaire. We’ll also give instances of how different sources of money can be used.

7 Types of Income Streams to Consider in Kenya

1. Earned Income

The main money you receive from your job or career is called earned income. It’s the familiar monthly salary that most people rely on. Earned money is a starting point, but its earning potential is frequently constrained. People in the Philippines have access to earned income in a variety of sectors, including manufacturing, services, healthcare, and technology.

Example: John receives a steady monthly salary from his job as a software developer at a global corporation in BGC.

2. Income from Interest

Savings accounts and products with fixed interest rates for short-term bank deposits produce interest revenue. Even though interest income offers some stability, your money may lose value over time because bank interest rates are usually lower than the rate of inflation.

Example: Maggie earns interest income from her bank deposits and keeps a high-yield savings account. Nevertheless, it is difficult to keep up with growing costs given the low-interest rates.

3. Revenue from Profits

Profit revenue is derived from a variety of side projects, gigs, and businesses. It entails using your network, abilities, and talents to generate extra revenue. This form of income can be generated through part-time enterprises, freelancing, or entrepreneurship, and it has the potential to develop significantly.

As an illustration, Maina successfully operates an online store offering goods that are obtained locally. By utilizing his marketing expertise and growing his clientele, he makes money.

4. Dividend Income

Investing in dividend-paying assets like mutual funds, dividend-paying stocks, company ownership or Real Estate Investment Trusts (REITs) generates dividend income. Dividends are a regular source of revenue that corporations provide to their shareholders as a portion of their profits.

Example: Sarah invests in dividend-paying equities listed on the Nairobi Securities Exchange. Her portfolio consistently generates dividend income for her, which adds to her overall wealth building.

5. Income from Rentals