Income producing assets are what separate the wealthy from the working middle class. In fact, during his five-year study of habits of the rich and poor, author Tom Corley found 65% of millionaires had at least three streams of income. It’s important to have multiple income producing assets for these reasons:
- If you lose a job, you’re still generating income elsewhere.
- You can bring in triple the income while working the same amount of hours, optimizing your time.
- Early retirement and financial freedom become realistic possibilities.
What are income producing assets?
Traditional income producing assets run the gamut from extremely safe to very risky:
CDs (Certificates of Deposit with your bank, or Share Certificates through a credit union)
Pros: Federally insured up to $250,000 with guaranteed return, low barrier to entry
Cons: Interest rates typically below inflation rates, ties up money for a set time period
Bonds
Pros: Get principal and coupon payments when held to maturity
Cons: Dependent upon interest rates, could lose money if you sell before maturity
Dividend investing
Pros: Generally less volatile than newer stocks/growing publicly traded companies
Cons: Advisor fees, requires investment consistency, not for the risk adverse
Cash flow life insurance
Pros: Tax advantages, earns interest and can use for policy loans, death benefit
Cons: Initial costs can be high, requires premium payments
Real estate
Pros: Low interest rates and high returns
Cons: Low liquidity compared to other investments, maintenance and upfront costs
Peer-to-peer lending
Pros: High returns, earn double the interest when you fund with Wealth Maximization Account
Cons: Risk of defaulting
Stocks
Pros: Potentially high returns, a variety of options to choose from
Cons: Management fees, market volatility, not for those afraid of risk
Creating your own products
Pros: Leverage your own creativity and expertise, low start-up cost you can control
Cons: Requires time, may or may not be successful
There is one income producing asset every person on earth already owns—yourself. The returns on this asset are limitless; the only barrier to entry is the limit you put on your worth. When you invest in yourself, you increase your earning potential and open up doors that lead to financial independence.
31 Ways to Invest In Yourself
- Attend business conferences in your chosen career path
- Take continuing education classes in your community
- Go back to school to finish or further your degree
- Enroll in online courses to learn a new skill
- Read books on topics that interest you
- Focus on your health and wellness (less sick days mean more productivity)
- Optimize your schedule to be more efficient
- Seek out networking events in your area
- Participate in workshops to stay current on industry topics
- Listen to podcasts and TEDTalks on ways to grow wealth
- Watch YouTube tutorials
- Continually set achievable goals (and enlist a friend to hold you accountable)
- Pursue what you’re passionate about
- Take breaks for creativity and brainstorming new ideas
- Practice public speaking to boost your confidence
- Be thankful for what you have and focus on improving your attitude
- Invest in a coach or therapist to help you on your path to success
- Start a side business (consulting, blogging, crafting, tutoring, etc.)
- Organize your work space (clutter has been linked to stress and lack of focus)
- Create a budget and start tracking your spending
- Cut out an hour of TV per day and use that time to work on your business
- Spend quality time with family and friends; studies show relationships bring happiness
- Surround yourself with people who inspire you
- Purchase experiences rather than material things
- Use an app like DuoLingo to learn a new language (or brush up on the Spanish you learned in high school)
- Get a planner to keep track of your to-do list (and all you’ve achieved)
- See your doctor regularly; prevention is the best medicine and can save you a lot of money down the road
- Drink less; alcohol is expensive and decreases your ability to productive
- Learn to cook; you’ll save money on eating out and it’s generally healthier
- Lock in your sleep schedule; the whole “early to bed, early to rise” motto really works in terms of increasing productivity
- Travel to new places to expand your perspective
When you start seeing yourself as an income producing asset, your whole attitude toward money starts to evolve. What will you do today to put yourself on the path toward growing your wealth?
At Paradigm Life we can customize a policy to fit your financial situation. Our expert Wealth Strategists are available to answer your questions and show you customized illustrations, outlining an individual plan of action to help you achieve your goals. 
, no strings attached.
FAQ
Q: What are some examples of income-producing assets that individuals can invest in?
A: Examples of income-producing assets include rental properties, dividend-paying stocks, and bonds, which can generate regular income for investors.
Q: How can individuals benefit from investing in income-producing assets?
A: Investing in income-producing assets can provide a source of passive income, help diversify one’s investment portfolio, and contribute to financial stability and wealth accumulation.
Q: Are there any considerations individuals should keep in mind when investing in income-producing assets?
A: Yes, individuals should consider factors such as risk tolerance, investment goals, and market conditions when selecting income-producing assets to ensure they align with their overall financial strategy.
