Wealth can be created by all people who live in a free enterprise system if they are willing to become self-educated, and created a plan. If you have enough income coming in from your INVESTMENTS, to live a comfortable life, you have created wealth. The goal is not to work for money, the goal is to put yourself in a situation where your money is working for you. It is really that simple.
Want to learn how you can earn passive income? Just follow these steps. Here are the 7 best income-producing assets that will start you on a path to financial independence and help you create a life of wealth and financial independence. In this article, we will share with you some foundational investment opportunities open to all, and everyone can participate. Below are seven income-producing assets that you can invest in to start creating your passive income streams.
I’ve split the list up into two ways: Safe and Risky. The former are assets I consider to be more conservative and proven that you can start investing in. The latter is a bit more aggressive — but can yield great results if done right. How are they done right? Find a mentor, it is that simple.
“Formal education makes you a living, if you become self-educated you can create a fortune”
Here is a list of the 7 basic passive income vehicles we will be covering in this article.
- Crypto Currecy
- Real estate investment trusts (REITs)
- Dividend-yielding stocks
- Property rentals
- Peer-to-peer lending
- Creating your own product
Having more than one stream of income can help you through tough economic times. Learn how to start earning money on the side with my FREE 7 Best Side Gig Income Opportunities Safe income-producing assets to invest in These are conservative, low-risk income-producing assets. The trade-off to its low volatility though is that you won’t earn as much as more aggressive assets. It’s still a good idea to have a few of these in your portfolio to ensure proper diversification.
1. Crypto Currency
Cryptocurrency has outperformed all other investment assets over the past 5 years, and I see no reason that trend will slow down. Yes, the market is currently very volatile, but you know what so is the stock market, real estate and every other sector. The difference is main stream media want to keep the volatility in front of you all the time in an effort to preserve the interest of traditional banks. Many bought and paid for politicians have one mission which is to speak out against anything that challenges the huge banking institutions.
I personally believe, now is the time to get crypto educated because the next bull market is coming. A good place to start is with the houses money. You can download a free report here that will show you HOW TO GET FREE BITCOIN.
At the very if you don’t want to totally miss out on this market is to set up a Crypto IRA, and deposit some Bitcoin and Ethereum into the IRA. In my opinion this is the safest investment you can make in crypto, but still has huge upside potential.
But there are a few drawbacks:
- Learning Curve, The crypto market is beyond complex. Don’t move into this market unless you are prepared to spend a lot of focused, education time. If you are willing to do that, this website will help you, www.cmgcrypto.com
- Emotional Highs & Lows The best advice I can give you is don’t jump into a crypto investment until you have an EXIT plan and follow your plan. Don’t be greedy. Take you gains and get out when it hits your predetermined price.
- Your Ultimate Goal The crypto market can be a WILD RIDE. Don’t jump until you have determined your ultimate financial goals and how crypto supports those goals.
If you want a low-risk investment that ensures you peace of mind, CDs might be for you.
If you’re worried about your finances, you can improve them without even leaving your couch.
Much like CDs, bonds are like IOUs. Except instead of giving it to a bank, you’re lending money to the government or corporation. And they work similarly to CDs as well — which means they’re:
- Extremely stable. You’ll know exactly how much you’ll get back when you invest in a bond.
- Guaranteed a return. You can even choose the amount you want a bond for (one year, two years, five years, etc.).
- Smaller in their returns. especially when compared with aggressive investments like stocks. If you want to know exactly how much you’re getting back, bonds are a great investment.
3. Real Estate Investment Trusts (REITs)
The U.S. Congress established real estate investment trusts, or REITs, in 1960 to allow people to invest in income-producing real estate.
REITs are like the mutual funds of real estate. They’re a collection of properties operated by a company (aka a trust) that uses money from investors to buy and develop real estate.
They’re a fantastic choice if you want to get involved with real estate investing but don’t want to commit to purchasing. Like with most blue-chip stocks (more on those later), REITs payout in dividends.
REITs also focus on a variety of different industries, both domestic and international. You can invest in REITs that build apartments, business buildings, or even healthcare facilities.
In all, they are a straightforward way to get involved with real estate without having to eat the upfront cost of buying property. To get started, go to your online broker and purchase a REIT like you would a typical investment.
One I suggest? The Vanguard REIT ETF (VNQ). This is Vanguard’s ETF fund that tracks a REIT index from MSCI Inc, a noted investment research group.
If you don’t know how to do that, that’s okay! I have heard it said that if you read 5 books on any topic you will know more about that topic than 97% of the people in the world. Just find proven mentors in the REIT investing niche, or whatever financial investment vehicle you want to master.
Risky Income Producing Assets
The following are riskier investments that might require more active management on your part. The earning potential for these investments is high. If you put the time and effort into these assets, you might find yourself with a nice sum of money to show for it.
4. Dividend Yielding Stocks
Some companies pay out earnings to their shareholders each quarter via dividends. These are known as “blue-chip stocks” and tend to be reliable and able to weather most economic downturns.
Many investors like to add a few dividend-paying securities via blue-chip stocks in their portfolio to ensure that they receive earnings consistently throughout the year. And while some like to handpick individual shares to invest in, you can get started by investing in index funds that specialize in high-yielding dividends.
Having more than one stream of income can help you through tough economic times. A few suggestions below:
- Vanguard Dividend Appreciation Fund (VDAIX)
- Vanguard High Dividend Yield Index Fund (VHDYX)
- Vanguard Dividend Growth Fund (VDIGX)
- T. Rowe Price Dividend Growth Fund (PRDGX)
5. Property Rentals
Renting out property seems simple enough:
- Buy a house or apartment building.
- Rent out the rooms to tenants for a nominal fee.
- The rental checks come in like gangbusters each month while you sip piña coladas and make passive income.
That DOES sound awesome — but it’s also a complete oversimplification. In fact, renting out property is anything but relaxing. That’s because you’re responsible for all facets of the building you’re renting out as the owner. That includes repairs, maintenance, and chasing down tenants who don’t pay you rent and the list goes on and on. I own a rental property and could share with you multiple nightmares as all rental property owners could. However, today our rental properties have been turned over to real estate management companies. They take a chuck out of our rent payments, but I never talk to a tenant. I just get a check deposited into my bank each month.
You CAN make money from renting out properties (many people do!). If real estate investing is something you want to pursue, I suggest you check out eBay for a discounted course on Real Estate Investing from an established mentor and teacher.
If you’re interested in purchasing properties to rent out, check out the courses available on eBay.
Luckily, with the rise of services like Airbnb, you can just rent out a spare room in your house and not worry about buying a separate apartment unit. You simply sign up for the platform and take advantage of short-term rentals. You’ll still have to deal with certain pains of property management but you’ll be able to leverage property you already own (e.g., a spare bedroom in your house).
6. Peer-to-Peer Lending
Also known as “crowdlending,” peer-to-peer (P2P) lending allows investors to essentially act as a bank. You loan money to others via a peer-to-peer lending platform (such as Lending Club), and later they pay you the money back with interest.
Unlike a bank though, the person seeking the loan doesn’t have to deal with financial background checks or incredibly high-interest rates due to things like bad credit history.
P2P lending isn’t without risks though. In fact, relying on someone with crappy credit to pay back a loan might be one of the riskiest financial investments you make. But if you’re willing to devote yourself and take the time to learn about the platform and use the money you don’t mind losing, it could be a very fruitful financial investment.
7. Creating Your Own Product
This is one of my favorite ways to make money. Not only is it low cost but it’s also easily scalable — meaning the sky’s the limit for your earning potential.
And you don’t need engineering or carpentry skills to create your product either. In fact, you probably use products every day that you can create too:
- Online courses
- These digital information products are perfect ways to earn money without sacrificing overhead.
BUT they come at a cost: Your time and energy. Not only do you have to create the product, but you also have to make sure that the product will sell.
Earn more money today
Income-producing assets are a great way to supplement your income through your investments. If you want to learn how to make even more money, my team and I have worked hard to create a guide to help you earn more today:
In it, I’ve included my best strategies to:
- Create multiple income streams so you always have a consistent source of revenue.
- Start your own business and escape the 9-to-5 for good.
- Increase your income by thousands of dollars a year through top-side hustles.
OTHER TIMELY PASSIVE INCOMES STREAMS WORTH GETTING SELF EDUCATED ON.