This is what 65% of Millionaires ALL have in common...

What's up you guys, it's Graham here. So I put something interesting the other day, and that was it: 65 percent of millionaires have three sources of income, 45 percent of millionaires have four sources of income, and 29 percent of millionaires have five sources or more of income.

This is a huge difference from what most people do, which is just have like one job that's 100 percent of their income, and that's it. This small difference between having multiple sources of income versus having just one could mean a difference of a lot of money over the course of your career. It’s really just about creating value with your time and using your time efficiently to lead you to what you want to achieve.

So it usually starts out like this: you have a main job that provides the majority of your income, and this could be like your cash cow. This is gonna be your priority, and this is going to be what's funding the second tier, which is gonna be whatever you decide to invest in. Usually, something like this could be something that's a little bit more passive, that doesn't require as much of your time but still makes you some money. That leads you to the third tier, which is whatever time you have left over. You can do something else with that; it could be like a side gig, a side hustle, something else other than your main job that continues to make you even more money.

So I like this method for a few reasons. The first reason is that you don't have 100 percent of your income coming in from one source. So if that one source of income dries up or something happens to it, at the very least you have something else to fall back on, and you still have money coming in every month. Now this also allows you to focus your time on other ways of running money that are a little bit more passive than what you do with your time, so that way if you ever want to scale back in your main job or had a little bit more free time, you already have some things in place to earn you money passively without you having to actively work.

Now this also allows you to better leverage your time, and I'm gonna be using myself as an example because I have four sources of income. So, as most of you know, my main job is working as a real estate agent in Los Angeles. Now even though I buy properties and I renovate them and I rent them out, and I make YouTube videos, what you're seeing are just my side hustles. In fact, what I make renovating properties and renting them out is really only just a fraction of what I make as a realtor.

So for me, my priority has always been working as a realtor, and this has always been my main focus and where I make most of my money. Just for a little perspective here, I make over 60% of my income from working as a real estate agent. So everything else for me is somewhat secondary, but all the money I make working as a real estate agent funds all the properties; thereby funds the renovations I do, and funds the subsequent rent I receive from those properties.

My second biggest source of income is the equity game from renovating properties. So I'll buy a property slightly under market value, fix it up, and I profit on the difference between what I'm into it and what the home is worth when I'm done. When I'm done with that, my third biggest income source is rental properties: three houses, a duplex, and a triplex. So no matter how my real estate agent business is doing, no matter if I'm buying properties or not, at the very least I'm getting rents paid every single month that I can rely on.

The rents I receive from the rental properties are pretty much passive at this point; it really doesn't require more than like a few hours of work per month just managing expenses and like little things here and there. For the most part, it’s entirely passive. And then I guess in a weird way, the money I make from rents and the money I make from equity funds these YouTube videos because it gets me cool content to document. I hope you guys enjoy it.

So, my fourth source of income is stock market income. Even though I have these invested in tax-advantaged accounts where I'm not really touching it, I'm still making money from that. It's all being reinvested, and I consider that another source of income that I could pull from if I needed to. The stock market income for me is pretty much entirely passive; I don't do a thing to it. I just buy it and forget about it—that's it.

And then if you want to get really nitty-gritty into it, I do make some money from YouTube; but when you factor in how many hours I spend making the videos, getting them perfect, editing them, responding to comments, I’m sure it probably works out to like minimum wage when you factor in how many hours are involved in this. But technically it's something, so I'll mention it here.

So as you can see, you've got the main job; it's a priority that funds the investments that with whatever time you have left can fund the side hustles—which is what you do in your spare time—which is, for me, like managing properties and having fun making YouTube videos. So it’s like this triangle of just income that like one thing supports another which supports the other, and then you just end up making a lot of money from it. Hopefully, a lot of this is gonna be passive, so it doesn't take a lot of time away from your main job, your main priority.

And this concept is something I found true for a lot of the high net worth clients that I work with. Because I work with a lot of the higher-end homes in Los Angeles, I’m around a lot of very wealthy people, and I've noticed all of this to be true from most of the people I work with. Very few of them just have a single source of income; most of them have at least a few different income sources coming in. Sometimes it's real estate, sometimes it's stocks, sometimes they have a business—they have something else in addition to their main job that's secondary to their main job, yet still makes them a pretty decent amount of money.

Yes, even though they have the main job, which is how they make most of their money, very rarely is that over 100 percent of what they make. And like I said, sometimes the business for them is real estate, sometimes it's stocks, sometimes it's a side business. There are really no limits here to what else you can do in addition to your main job. From the side incomes, I've seen sometimes it's long-term sustainable, like real estate for example, and other times it's something with a very short lifespan, like maybe selling a trendy product or going with like a hype of something that makes the money maybe from like one to five years, but maybe after that it might be obsolete.

But whatever it is, they'll still make money from that in addition to their career, and most of the time their other income sources are fairly passive and don't require too much of their time. Now it's less important about what they're doing specifically, and more important to realize that it's just about diversifying yourself and having different sources of income coming in.

Okay, so now what can you do specifically to do this? The first thing I would do is try to figure out what you want. Do you want something that you can create that's entirely passive? Do you want something that could be really long-term sustainable? Do you want something that you could be actively involved in? Do you have the time to even do that?

Figure out how much time you have, what you want to create, and then begin to work around that. And also, what do you like doing? I wouldn't recommend doing anything that you don't like, that you dread doing, that you don't want to do just to create some passive income. Ideally, I'd recommend you do something that you're interested in because, at the very least, even if you don't make a lot of money from it, you're still enjoying yourself and getting a good experience.

Now just for some ideas: if you want something entirely 100 percent passive, I personally like index funds, and that's what I do on the side. It is not something that's gonna get you rich overnight; it's not like you're gonna invest a thousand dollars and make like 10 grand the next year. It's not gonna happen. But for something that's pretty safe long-term, that requires pretty much no work with a low barrier to entry, I personally like index funds and I use Vanguard all the time.

So if you want to look into that, Vanguard index funds are fantastic. If you want something that's much higher risk, much higher return, I've seen a lot of you guys make some pretty decent money from trading cryptocurrencies. Even though it's not something I do myself, and not something I really want to get involved in, I can't deny the fact that I've seen some of you guys make a ton of money from trading like Ethereum, Litecoin, Neo, Bitcoin. So you know the possibilities are out there if you want to look into it.

Then, if you have a little bit more time and a little bit more money, I see real estate as a phenomenal investment. This is something I do myself, and I really enjoy it. I really like searching for good deals and then fixing it up and kind of making it your own, so I really enjoy that. If you want to look into real estate, you could look into buying rental properties, or if you've got the time and you like the hustle, a lot of people are making some pretty decent money from wholesaling. So definitely look into those two if you've got the time and you've got the hustle or you've got the capital to invest.

It's also not the easiest thing to do to invest in real estate and fix them up and find properties while working a nine-to-five; it makes it a little bit more challenging. It's still doable, but it might take away from your main source of career if that's, you know, a nine-to-five job.

There are also hundreds of other ways that you can make money passively from peer-to-peer lending, like Lending Club.com, or making YouTube videos, or writing ebooks, or doing like Amazon affiliate marketing, or trading stocks. The possibilities here are really limitless, so you can kind of go wild with this and figure out something that you really like doing.

Now besides real estate, I'm also a believer that things are really shifting to online and mobile, so I think anything in those sectors is something that would do really well long-term. It's also something that you could leverage and grow and scale without you having to physically be in one location for the entire time, so I think all of those industries are really good to get into.

I also really like the businesses that don't require 100 percent of your time. I like the ones where you can work a few hours here and there, set something up, and have it kind of work for you passively in the background. So overall, there are huge advantages to diversifying your income. It makes you more money; it's something you can do on the side, and it's something you can leverage to make even more.

So anyway, I hope this helps. And as always, you guys, thank you so much for watching; I really appreciate it. If you haven't already, make sure to click Subscribe and smash that notification bell so you know anytime I upload a video; you don't miss out on that. Also, feel free to add me on Snapchat and Instagram; I post there pretty much daily. So if you want to be a part of it there, I'll give you a second to feel free to add me there. Thank you again for watching, and until next time.