In today’s age, there are more ways to make money than any time before.
Knowing where and how to make this money can however be difficult. Earning passive income and having income producing assets is one of the easiest and most efficient ways to make consistent money over long periods of time.
The most widely known and most used income producing asset is stocks and bonds. Stocks can oftentimes be the best and most consistent way to easily produce income. On average, they have an 8-10% compounded annual interest rate also making them one of the quickest ways. Bonds are very similar but can take longer periods of time and are not as volatile as stocks. Bonds generally are meant to be held on to for years at a time and will produce consistent returns.
Property is also one of best income producing assets.
Simply buying a property and renting it out can make enormous amounts of money especially if the property has a high value. Another easy way to make extra income off property is to just renovate the house or building once bought, then resell it at a much higher value.
Savings accounts will also help bring in some passive income from year to year. Savings accounts are not as useful as they used to be because of their low rate of return but if given a good rate and a few years pass, it can produce a decent return.
Investing in small businesses can bring in enormous returns as well. Whether it be completely buying out a small business or owning just some of it, as long as the business is making money you will too.
Certificates of deposits or CD’s are great ways to have a safe and consistent income producing asset.
They are very similar to savings accounts but instead of being able to transfer money in and out of the account, you put in a set amount and after the CD matures you are able to take the money back out. CD’s will usually have much better rates of return than savings accounts as well making them more useful.
If you already have a decent bit of income saved up, opening up a franchise could be a great income producing asset. While it does take quite a bit of money in the beginning to open one up, they can bring in large amounts of passive income with little oversight on the owner’s end.
The buying and selling of websites is also a fast growing market that can bring in large amounts of income. Just like regular businesses or properties, online businesses and websites can be bought and sold. Much like renovating a property, websites and online businesses can also be renovated and flipped for much higher prices than what you purchased it for.
Royalties are another modern way in which passive income can be produced. Especially in the music industry, owning part or a whole song that gets used in advertisements can bring in much more income than one may think.
Peer to peer lending is an income producing asset that basically replaces the need for bank loans through personal loans. By giving out personal loans, you are able to earn interest that would otherwise go to the bank but instead now goes directly into your pockets. You are also able to change your interest rates given out much easier than a bank can make your personal loans much more attractive than a banks.
Finally, creating your own products or services is a great way to earn income over long periods of time. Entrepreneurship or invention can lead to enormous rates of return on your products but is also a very risky method.
We hope you gained some knowledge regarding income avenues to take. This was a suggestion blog, however, if you need to consult us about getting started with any of the items in the list don’t hesitate to call us. We will be happy to sit down with you and talk about having success in 2021.