9 Income Producing Assets Every Investor Needs to Know About

Income Producing Assets for 3 Streams of IncomeIncome 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:

  1. If you lose a job, you’re still generating income elsewhere.
  2. You can bring in triple the income while working the same amount of hours, optimizing your time.
  3. 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

  1. Attend business conferences in your chosen career path
  2. Take continuing education classes in your community
  3. Go back to school to finish or further your degree
  4. Enroll in online courses to learn a new skill
  5. Read books on topics that interest you
  6. Focus on your health and wellness (less sick days mean more productivity)
  7. Optimize your schedule to be more efficient
  8. Seek out networking events in your area
  9. Participate in workshops to stay current on industry topics
  10. Listen to podcasts and TEDTalks on ways to grow wealth
  11. Watch YouTube tutorials
  12. Continually set achievable goals (and enlist a friend to hold you accountable)
  13. Pursue what you’re passionate about
  14. Take breaks for creativity and brainstorming new ideas
  15. Practice public speaking to boost your confidence
  16. Be thankful for what you have and focus on improving your attitude
  17. Invest in a coach or therapist to help you on your path to success
  18. Start a side business (consulting, blogging, crafting, tutoring, etc.)
  19. Organize your work space (clutter has been linked to stress and lack of focus)
  20. Create a budget and start tracking your spending
  21. Cut out an hour of TV per day and use that time to work on your business
  22. Spend quality time with family and friends; studies show relationships bring happiness
  23. Surround yourself with people who inspire you
  24. Purchase experiences rather than material things
  25. Use an app like DuoLingo to learn a new language (or brush up on the Spanish you learned in high school)
  26. Get a planner to keep track of your to-do list (and all you’ve achieved)
  27. See your doctor regularly; prevention is the best medicine and can save you a lot of money down the road
  28. Drink less; alcohol is expensive and decreases your ability to productive
  29. Learn to cook; you’ll save money on eating out and it’s generally healthier 
  30. Lock in your sleep schedule; the whole “early to bed, early to rise” motto really works in terms of increasing productivity
  31. 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?

 

Paradigm Life

Paradigm Life (362 Posts)

Financial Services Company focusing on Infinite Banking and providing solutions to problems many American are currently facing. Located at 132 Pierpont Avenue, Suite 250, Salt Lake City, UT 84101.