1. Earned Income – The Starting Point

“First up is earned income—this is your job, your freelance work, or your side hustle. It’s the money you make by exchanging your time and skills for pay. Now, a lot of people stop here. They rely only on this one source, and that’s risky. Why? Because if that job disappears, so does your income. But earned income is still important—it’s usually the first step and it funds the other income streams.”

2. Investment Income – Money Working for You

“Second, you need investment income. This is where your money starts working harder than you do. Think stocks, bonds, real estate, index funds, or even dividend-paying companies. The beauty here is compounding—your money grows and produces more money over time. It’s not overnight wealth, but it’s steady, powerful, and essential for long-term security.”

3. Business or Passive Income – The Freedom Builder

“And the third stream is business or passive income. This is where you create something once and it continues to generate revenue. It could be a small online business, digital products, courses, affiliate marketing, or even royalties from a book or music. This is the income stream that buys you freedom, because it isn’t tied directly to your hours. Once built, it keeps paying you—sometimes even while you sleep.”