Buy income producing assets
Income-producing assets are high or low-risk, traditional assets that can make you money while you sleep. What is better than that? Not much. This is a perfect way for you to make money without having to work for it.
Safe and risky income producing assets can either give you lower income, steady returns or you could hit the jackpot by investing in short-term assets. Acquiring safe income producing assets is a long term game, while, riskier assets are a much quicker return.
1. Dividend yielding stocks
Dividend yielding stocks are more of a riskier income producing asset because of the active management you need to care of on your part.
You have the potential to make high returns with this asset. Take care of these assets and you will see yourself with a comfortable quantity of money.
You can benefit two ways from dividend yielding stocks and make some serious money. First, you can make money from the appreciation of the stock you own. The second way you can make a profit is through the distributions from the company.
Many dividend yielding stocks are known as “blue-chip stocks” which are massive, reliable trading companies that make enough profit to pay their stockholders a dividend.
Some examples of amazing dividend yielding stocks are listed below:
- Lumen Technologies Inc. (LUMN)
- AT&T Inc. (T)
- Simon Property Group (SPG)
- Verizon Communications Inc. (VZ)
You could also get into investing in dividend yielding index funds, which can be a much safer route to go.
Index funds are essentially a group of companies that are put into a portfolio(fund) and follow the S&P 500 and Nasdaq 100. You are investing your money into multiple companies allowing you to have more of a diverse portfolio, which can lead to safe, steady returns.
Some examples of the best dividend yielding index funds include:
- Fidelity ZERO Large Cap Index
- Vanguard S&P 500 ETF
- SPDR S&P 500 ETF Trust
- iShares Core S&P 500 Core ETF
There is no better time to invest money into your portfolio than right now.
Go to Fidelity or any investment brokerage that attracts you, create an account, and start putting money into these different stocks and index funds.
If you want to learn more information about investing into the stock market, creating an account, and you want to start making returns, then check out this Investopedia article.
2. Bonds
Bonds are another great income producing asset that you should highly consider.
Bonds are issued by the government and companies that want to start raising money. By buying the bond, you are giving the government or company a loan, which then leads to you getting your money back and interest payments along the way.
Bonds are a much safer investment because you know exactly how much you get back when you invest in a bond.
Since you are guaranteed a return you can also choose how long you want to have the bond for (1,2, or even 5 years).
If you want to learn more, check out this article that covers everything bonds.
3. Rental Properties
Personally, rental properties are the one income producing asset that gets me the most excited. I think they are an interesting and efficient way to make money.
This type of investment is high risk, but can be very rewarding if done right. This is an asset that takes a lot of commitment and effort as you have to constantly manage the property as an owner.
Here is a very simple overview of investing in rental properties:
- Buy a house or commercial building (apartment buildings, duplexes)
- Rent out the rooms to tenants for a monthly fee
- Get paid monthly cashflow and watch your bank account grow passively
I know this sounds amazing, however, it is a lot more work than you actually think. You are the owner of the property and have to manage all aspects of the rental including repairs, cleaning, maintenance, acquiring tenants, and maintaining tenants.
In an article by The College Investor, 90% of millionaires are created through real estate. This just goes to show that if all these people are doing real estate investing, why can’t you?
Want to learn more about real estate investing click here.
4. Real Estate Investment Trusts (REITs)
If you thought that investing in rental properties were cool, then I think you will feel the same way with REITs.
What are REITs?
A real estate investment trust (REIT) is a company that invests in income producing real estate assets. REITs usually own commercial real estate including apartment buildings or office buildings.
This is an easy way to get your money into som real estate investments. They act like an index or mutual fund, but for real estate investments.
There are many different REITs you can invest your money in that specialize in different industries like apartment complexes, office buildings, sports facilities, distribution centers, or hospitals.
I highly recommend using Fundrise which is an online real estate brokerage that allows you to invest in REITs with the access of your phone.
Learn more how to invest in REITs in this article by Investopedia.
5. Sell your own product
This is a very exciting way to make a good amount of income.
By selling your own product, you have total freedom of what you want to sell and how much energy you want to put into selling your product.
Technology and social media has made it easy to create your own product and sell it online.
Some product ideas that are selling out big right now include:
- Courses
- Podcasts
- Blog
- E-books
- Anything you really want
Obviously this income producing asset will require putting in an immense amount of effort in order to sell your product and make sales.
You need to put time and energy in creating the product and actually selling the product.
Click this article to learn how to get started in selling online products.
Some tips to remember
I just want you guys to remember I am not a certified financial planner, I am just sharing what I know and what I do with my money. Would like to put that out there
Try to have a diverse portfolio
Ever heard of the saying “don’t put all your eggs in one basket?”
This is exactly what you need to do with your money. It is so important you invest your money into different assets.
This is what is commonly said by many people, but it is so true.
Having all your money in one basket or asset brings a lot of risk to the table. What if there was a natural disaster that forced your asset to crash or lose a lot of value? You would lose a lot of your money.
You would be a lot safer if you put your money into multiple different assets. By doing this, you reduce your risk of loosing all of your money. It is that simple.
Hold long term
Holding your investments for the longer-term is a lot more reliable and cost-effective way to make money off your investment.
Short-term buy and sell transactions are more risky and could take you off track of your investment goals.
Don’t wait, invest now
Time in the market is more important than timing the market.
Stop getting analysis paralysis and wasting your time trying to find the absolute best time to invest. You are simply just wasting your time and energy.
The best time to invest was yesterday. Stop wasting time not putting your money to work, the sooner you get your money in an asset, sit back and watch it grow.
That’s It!
Everybody should have these five assets, so you can invest and have your money working for you.
I hope you guys learned something in this blog post and go out there and start investing your own money.
Comment something you loved about this post and if there is anything you would like to learn about in future posts shoot me a message!
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NL