Have you ever caught yourself daydreaming about making it big- having too much to spend? You, dear reader, are not alone.
While there’s no legitimate way out there to make you a multi-millionaire, there are a few things that could over time. If you are interested in building your wealth, you might want to explore income-generating assets that will give you a hand. But digging deeper into these, you will come across many false claims of assets that make money. This is precisely what you want to avoid if you’re going to stay away from losing your hard-earned money.
Income generation is a long and intimidating process. One that requires patience and making the right decisions. But whatever you do, don’t panic. Here’s a list of the best assets that will make your life easier.
A Manual of Income Generating Assets
Did you know that there is a way to make your money work? It might sound odd at first, but that’s exactly how rich people get rich.
Wondering how that works? Simple, passive income.
By saying making your money work, we don’t imply your money will do your paperwork for you. Instead, you could invest your existing money into assets that generate cash flow. You might need a hand with that, though. This is why this article is your knight in shining armor.
If you’re wondering, what are assets that generate cash flow? Or what assets to buy? Or where can you find good assets to buy? You’re in luck! Keep scrolling to get the answer to all your questions.
What Are Income Generating Assets?
By definition, income-generating assets are your valuable possessions. But they’re not just any possessions. These assets are capable of generating a stream of cash flow over time. Anything could fit this definition. A bond you bought years ago. Or some property you inherited from an estranged relative. Even your business is an income-generating asset.
Making money through appreciating assets is a good long-term plan. You might already be sitting on a pot of gold without even realizing it. Investment requires good research, planning, and decision-making skills. Anyone with the basic knowledge of assets that generate cash flow and patience can make a whole lot of greens.
All in all, it is not as hard as it seems. It is intimidating, however. But that’s only because the idea is probably new to you. Once you have all your tools and the ground research covered, the entire process is straightforward and stress-free.
Getting started is always the hardest. But once you get going, the road eases up along the way—first thing’s first. If you’ve decided that you want passive income generation, there are a few basics you need to cover.
Initially, you need to identify if you have any earning assets already in your possession. But if you don’t have any, start by evaluating how to create assets by making the best of what you already own. If that doesn’t work out, start researching good assets to buy.
Before you make that decision, you should make sure you live by the 80/20 rule. What is this 80/20 rule?
To put it in the most uncomplicated fashion: going by the 80/20 rule implies that you will be making 80% of your net income from 20% of assets that you own. A good business hinges on this delicate balance.
You will need to keep a check over what you own and what you make throughout this process. But before you get to that, you need assets to build your empire from scratch. You can choose from the many assets that appreciate out there. The right one for you will make the foundation of your earnings.
The main goal here is to make sure your assets are doing most of the heavy lifting for you. At the same time, you sit back and do little to nothing. It does take time to get there. But once you can build the flow, things run pretty smoothly from there with a little bit of caution.
18 Assets That Generate Income
Assets that make money are in abundance. But what are the good assets to buy? This is the first order of business here. You can never be too prepared, right? But don’t worry, we have done most of your hard work for you.
You don’t need to go out there and go through the thousands of available options. You don’t need to spend hours and nights on each one only to overwhelm yourself. Why? Well, because we’ve handpicked the best ones out there. Here is a list of the top 18 assets that generate income to help you get a headstart.
Best Income Producing Assets
Best income-producing assets are not hard to come by. The trick part is picking the right ones. And even more critical is finding ones that work for you. That is easy for you to manage. Ideally, it is something you are already familiar with. This way, you’ll genuinely be putting in minimal effort. Honestly, that is the ultimate dream everyone has.
You will indeed find your best match from the list below. Good luck!
Companies that run by making cash payments will give out such stocks, typically every quarter. The overall performance of that company determines its value.
You’ll be unaware of the net worth of these stock dividends or even if they exist in the first place or not. That is something for the board of directors to know. Unless, of course, they decide to let you in on it.
There are two types of dividend-paying stocks you will come across- preferred and common.
Preferred ones tend to be riskier than common ones.
A good dividend doesn’t just have a good dollar value but also a good dividend yield. Look out for those with 2%-6% yield. They’re the golden geese. Most good corporations are the ones giving these out.
Rental properties will give you a decent overall cash flow. However, this option falls more in the ballpark of high-risk, high-reward investment. Find the best physical assets to buy, and you’ll be sitting on a gold mine. You could choose between apartment complexes, multi-family units, or single-family homes. In any case, your revenues will be from the rent your tenants will pay.
Before you make a decision, beware of the unique challenges that come with rental properties. As a homeowner, repairs, and mortgages aren’t the biggest of your problems. You also need to be on the lookout for Phantom costs and build a safety net.
Real Estate Crowdfunding
How can you have ownership of real Estate if your net worth isn’t a million dollars? What if there was a way you could invest in real estate even if you didn’t make over $200,000 a year?
Your answer is crowdfunding.
Crowdfunding is a genius idea that allows the common joey to have partial ownership of the real estate. A pool of owners then makes money off of a single property simultaneously without each having to spend millions.
Fundrise and Roofstock are two of the best online real estate crowdfunding platforms out there. Fundrise deals in commercial, residential, and single-family properties. Whereas, Roofstock sticks to single-family homes. They have a similar minimum investment of $500. But with Fundrise, the fees are slightly higher, at 1%, compared to the 0.50% Roofstock charges.
Peer to Peer Lending
Peer-to-peer lending is a novel concept. The basic principle is that people looking for a loan come into contact with lenders. And then, just like a bank, pay back their loans with interest.
Two of the most peer-to-peer lending sites in business are Lending Club and Sofi. Most people reaching out to these sites rather than banks do so because of low credit scores. It is a legitimate way of income generation for lenders. But it is on the higher end of the risk spectrum.
If you don’t mind, a few losses here and there peer-to-peer lending will surely make you a decent amount of easy greens.
Building An Online Business
Online business is among the top income-generating assets you can invest in. It comes with a disclaimer, though. Initially, online businesses require tons of time and effort to build. That being said, there are countless opportunities on this front that will free you from a full-time job.
You try your hand at selling things on Amazon. If that doesn’t meet your taste, starting a blog or running e-commerce are great examples of alternatives. You could even make your website. But in case you’re in for a more low-maintenance option. Try purchasing a niche website. With a little bit of experience, niche websites have the potential of generating substantial revenue.
Owning Your Own Traditional Business
By this, we mean anything from a coffee shop, a dry cleaner store, or even a handyman service. Pick a hobby and turn that into your bread and butter. You’ll be your boss. The possibilities are endless.
The goal here is that the owner has to do better in comparison to the employees’ overtime. Don’t worry if you can’t build your empire from scratch. Look for a small business willing to sell. Make the purchase and run it as the CEO. All the earnings you’ll make will add up to your net worth. You can use that money to meet your expenses and feed your business as well.
The only trick here is to figure out how to create assets you can transform into a business?
Safer Income Producing Assets
Everyone finds investments intimidating. You are certainly not alone. For some of us, the stakes are higher than the others. There are other options for all those people who can’t go all in. We get it. There are bills and mortgages to pay that make it impossible for you to take a leap of faith.
If playing it safe are words you live by, here’s a very low-risk appreciating assets list.
You may know money markets by a different name, money market savings accounts. Like all other bank products, they operate similarly. But some key differences set them apart.
For starters, to get the best interest rate, your savings account has to have a relatively high initial balance. Secondly, owners of savings accounts have to face more restrictions than regular accounts. There’s one more thing you should sleep on before seriously considering savings accounts as your earning assets. You’ll only be able to make withdrawals up to six times in a month. Nothing over that.
Money market accounts aren’t high-income investments. They serve their purpose as a saving vehicle. Plus side is they do this while still earning some return.
Certificate of Deposit
Certificates of Deposit are almost identical to savings accounts. You put your money in a CD for a duration of time. When that period ends, you get your money plus a small return. The basic principle is the loner your cash stays in, the higher the interest rate you’ll receive.
CDs don’t have much potential for growing your wealth substantially. If you put your money in for 5-7 years, chances are all you’ll get is a 2.5% return, which isn’t much. But this is inarguably one of the lowest risk income-generating assets available.
Getting a bond will guarantee you the best asset if you are interested in a safe, low-risk investment.
As a bondholder, you are taking up the role of a lender. This could either be for a government or a corporation. The interests you receive come in fixed rates at a set schedule. At the end of the loan term, your original investment is returned to you as well.
The interest you receive on bonds grows proportionately with the length of the term of the loan. What makes them stand out is that they pay higher claims than both CDs and money market accounts.
Real Estate undoubtedly is a great business. It has higher stakes and hence higher rewards. But like most people, you might be hesitant to get into the hassle of down payments and all other associated risks.
Real Estate Investment Trusts consider the concerns of you and all others who don’t want to place all their eggs in one basket. The system works as a host. The host company is responsible for investments in different commercial and residential properties. All its investors, which are people like yourself, buy their shares. Each investor’s assets are divided into the properties owned by the host company.
You get your dividend paid to you in the form of stocks. In this case, income generation varies. The frequency and volume of your premium will be determined by the total profit loss ratio of the REIT.
Other Clever Income Generating Ideas
The appreciating assets list is given above covers options that fitx` the ideals of most people. But the variety of income-generating assets doesn’t end there.
Something seemingly redundant could also be in your list of earning assets. As long as you have the willpower, the road to passive income generation is yours to conquer.
Let’s look at the many other options for out-of-the-box thinkers we have yet to discuss.
Did your family own a country home at one time, but they never looked back because life happened? In case this is true for you, consider it your lucky day. Even if you don’t have inherited farmland, buy yourself some.
For someone who already owns a decent piece of farmland, you could either sell it or rent it out. If your property is in a suitable locality with fertile soil, you could make $100,000 or more per acre. But if you are someone who has purchased farmland, rent it out and be paid annually.
You can expect to earn anything between $50 and $250 depending on your land and what the soil quality is.
Has it crossed your mind that you can make money with something as mundane as wood? Owning a Timberland to make money is not as rare as it sounds.
This is an ideal option for anyone who already owns land in a wooded area. Just chop some trees down and start selling them. But if you plan on growing your trees yourself, you will need a ton of patience. This is a good plan, but it could take you 15+ years before you start making yourself any actual profit.
Although this is one of the best income-generating assets, if unconventional is your cup of tea, you should make sure to replant every tree you cut down. This business could devastate the planet if run irresponsibly.
This will come as great news for or all the social media music artists out there. If you’re not aware of it yet, you could copyright your music, and your music is now the best asset to make you rich.
For those of you who aren’t artists, even you can benefit from royalties. There are numerous artists out there who are willing to sell copyrights to their creations to make a few bucks. Even big corporations keep an eye out for royalties. Sony paid a staggering $750 million to get their hands on Micheal Jackson’s music catalog. This high-profile purchase speaks for the potential royalties have as income-generating assets.
Storage Unit Rentals
Storage units are good assets to buy since they are very low maintenance. They require little to no upkeep and minimal construction costs. So your net labor costs are next to nothing as well.
People need storage units to store their boats, RVs, campers, and other larger vehicles. Your dividends will be derived from the rent your tenants pay. You can easily rent out your space privately or on platforms such as Stow It.
Your garage or a spare building could also serve as a storage space. Whatever you choose to rent out, your tenants can access that area with a pin or with a key, and your business is all set to go.
Annuities are solid retirement plans. They are much like CDs or savings accounts. The difference is that investors sign annuities with private corporations.
If you choose to pay immediately as your annuity begins, it will be an immediate annuity. For payments made, later on, such annuities are called deferred annuities. Whichever you choose, you can either pay a lump sum amount or in an increments-your call.
After that gets taken care of, the corporation decides to pay you a regular income after a fixed date. This could take years, months, weeks, or even begin on the same day as the annuity starts.
Private equity is an excellent option for those it is approachable too. But since not many have easy access to it, it isn’t too high up in the appreciating assets list.
People with private equities essentially invest in private companies. The goal of these companies is to invest their capital to achieve rapid expansion.
Are You wondering why aren’t private equities approachable? That’s because only accredited investors can own them. Another factor that limits access is the sky-high minimum investment amount. Investors need to choose the companies they invest in carefully. All in all, if you can get yourself private equity and have a knack for high-risk, high-reward investment. You should get yourself one.
Investing in Art
Investing in art is a relatively new way of alternative investment. Masterworks is one such organization that provides this service.
The idea is to purchase art below market price and sell the share to investors. Masterworks functions by first researching. Their intense research makes sure they buy pieces with 9%-15% appreciating potential. After purchasing and filling an offering circular, Masterworks owns the piece for about five or seven years. After which, it will be sold to a collector.
Art pieces are great assets that make money, and investors usually get a decent share. For example, Masterworks offers its investors a $20 share per piece. It is an excellent alternative to traditional investing with solid return potential.
There are many properties with delinquent property taxes in many cities. A lot of these cities choose to auction tax lien certificates. Owners of the certificates can then earn interest based on the value of each asset.
The winner of a tax lien auction is typically someone who presents the lowest bid. A tax lien auction can be offered online or even at a courthouse. The bid winner will then be responsible for collecting their tax lien while the government keeps getting its taxes.
There are some loopholes with tax liens. But don’t stress over this. Do rigorous research over your local laws, and you can easily steer clear of these.
What About Crypto, Gold, and Wine?
Cryptocurrency gained popularity among millennials. All you need is a little bit of research, the internet, and a legitimate app. Binance is one such straightforward and reliable app. Many coins have a high value. Bitcoin is the oldest coin and is notorious for its reliability.
Investing in precious metals has been around for centuries. Wars have been fought over gold mines. It is thus impossible to overlook gold while searching for substantial income-generating assets.
No matter what decade it is, people will never stop drinking wine. Winemaking is an art. Wineries are no doubt high maintenance investments. But once you master the art of winemaking, getting your name out is not too difficult. The wine business requires patience and precision. An excellent aged bottle of wine, however, is essential for every event. If you’re on the lookout for the best physical assets to buy and have the cash to spare, take the wine business into serious consideration.
Which Are The Best Assets To Invest In?
Now that you’ve had an opportunity to explore all the options on our list, you should have a pretty good idea of where to start. However, if you need help deciding among these, we can help you there as well.
Every income-generating asset will pose a unique challenge. But some perks will come with it as well. Some of the best traditional ways of income generation are bonds and savings accounts. However, if you want to make it big, the real estate market is waiting to be explored.
For those who taste for an alternative non-traditional income generation asset, the possibilities for you are abundant. There are free online courses to guide you along the way as well.
As time has passed, the world has started giving more attention to passive income generation. People are getting creative every day, and more options are coming along as a result.
All things considered, it is easy to say that you could make a comfortable living without a full-time job.
What are the most profitable assets?
The most profitable assets, in our opinion, fall in the high-risk, high-reward category. Things such as stocks and online businesses possess the highest paying potential. They don’t suit everyone. However, if you want to make it big and are willing to go all-in, your chips will fill your pockets with greens.
What are good assets?
In our opinion, there is no one size fits for those looking for good assets to buy. By definition, a good asset will fulfill your long-term goal and suits your responsibilities. Savings accounts are suitable for those who can’t take the risk and not the best for those who can. So a good asset will be different given your circumstances.