The rich focus on assets while poor on liabilities. In simple words asset is something that brings money to your pocket. The long list of assets you have the more financially stable you are. Asset helps you in building multiple sources of income. In true sense, it is putting your money to make more money. Let’s Look at the 10 Income Producing Assets that can make you rich fast.
1. Real Estate
One of the best asset categories. With a growing population, there is a rise in the need for space, need for home, real estate can prooved to be a strong asset. Plus dealing in real estate is more like a stock market where you buy a home, or piece of land at a lower rate and sell it for a higher amount.
The demand and the price of the properties are more than ever before which is why people are finding greater fortunes in real estate. But it doesn’t mean you wake up from the sleep and start buying useless properties. Real estate could be a risky investment without proper knowledge.
2. Certificate Of Deposit (CDs)
Commonly known as CDs, certificates of deposits are money market instruments issued by banks. In simple words, it is an agreement between the depositor and the bank for depositing a fixed amount of money for a specific period of time.
Here unlike a savings account, you can’t withdraw your money before maturity period which can vary from 7 days to 1 year and more.
With higher interest rates and easy to operates, CDs are amongst hot favorites between people who want to put their money to make money for them.
A Bond is basically a loan where a borrower(government) takes a loan from a lender(corporates) and in return borrower provides bonds. Bonds are fixed-income securities. The borrower has to pay a fixed interest rate to the lender.
Bonds are very common among investors and since they are backed by the government there is less risk associated with bonds. Generally, bonds pay higher interest rates than a savings account.
Dividends are the returns on investment in share. Basically, if a company you have invested your money in, makes a profit it pays you some money ( believe me it can be huge) as a token of appreciation. The better your portfolio is the more money you can make from dividends.
There are lots of investing legends that are making hundreds of millions of dollars only through dividends. Dividend income is a strong asset class that can generate a life long cash flow for you.
You have probably heard of stocks. Stocks or shares basically represents ownership of the company. Stocks price goes up and down, and investors make money by it. They buy a stock at a lower price and sell it at a higher price and this makes them profit.
Let’s say you invested in apple’s stocks of worth 100 $ ten years ago, you’d have more than $7000 worth of stocks as per June 2020. Now that’s really a whopping amount. Well, this is how the stock market plays.
6. Savings Accounts
Savings accounts are a type of account where you can deposit or withdraw your money but most importantly, it pays you interest on your money. This is interesting, I mean what’s better than your money is making money for you.
Most savings accounts in India pay an average of 4% interest on your deposited money annually. Earning 4% of interest on your money is a great way to increase the value of your money.
7. Rental Properties
Rent out your free space and earn money. Now let’s see this on a bigger picture suppose you have 3 properties each of rent about 20,000 Rupees each per month that’s total of 60 thousand rupees per month. And in total more than 7 lacs rupees annually.
Earning more than 7 Lacs Rupees only through renting is a great way to earn side income. Plus as the time goes the price of properties increases implies Rent price also increases. There are lots of people making more than millions through renting.
8. Peer to Peer Lending
Peer to peer lending is a method where the lender(a private institution) gave money to the borrower without any involvement of banking authority. This is beneficial for both, borrowers can get money easily even if he doesn’t qualify for the loan according to the bank, and lenders can charge a higher interest rate.
In this way lenders often make money through interest. P2P lending is an old practice in India where borrowers could get loans easily at a higher interest rate whereas lenders earn money from their own self sanctioned interest rates.
With the ever-growing need for the internet, people are spending more time on the internet than ever before for various purposes. And consuming content at a greater speed which makes it a perfect asset to generate income in the long run.
You can start your websites or blog or youtube channel and monetize it to earn money. Blogging and Youtube channel is a hot trending for those who want to earn a handsome amount of money online.
In simple words, royalties are the money you get paid for letting someone use your owned property. The property, in this case, can include your idea, your thought, trademark, copyrights, patents, art, literacy work, music, or simply your name.
A common example of royalties is that of Musicians or actors, they earn millions of dollars, yes millions of dollars for selling the rights of their music to the respected company. The publisher paid the author royalties on every sale of the book.