Home Finance 15 Best Income-Generating Assets to Become Wealthy

15 Best Income-Generating Assets to Become Wealthy

Getting income-generating assets should be a major concern for everyone, especially with the growing rate of inflation today.

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Are you looking to secure your financial future and that of your household? Then I suggest you consider investing in some of the best income-generating assets I will mention in this article.

Desiring to be financially stable is essential, especially because inflation is on the rise. According to Statista, the United States recorded a 3.1% price increase in goods and services in January 2024 compared to January 2023. 

With such financial crises lurking around, it’s more crucial than ever to diversify your income sources and invest in income-producing assets (no, I don’t mean only bonds and stocks).

While bonds and stocks are among the most popular assets that generate cash flow, there are tons of other income-generating investments you can explore (I have experimented with 11 of them).

Thankfully, in this blog post, you will discover some of the best income-generating assets and how to get started. Let’s hop in.

What Are Income Generating Assets?

Income-generating assets are assets that simply appreciate over time allowing you to yield money and produce a consistent cash flow. Having these assets in your portfolio enables you to create a sustainable financial flow and attain financial security. This ranges from weekly passive income streams to annual high-yield investments.

Wondering what are examples of income-generating assets? They include real estate, stocks, rental properties, farmlands, and more (Don’t worry, I’ll discuss them in detail going further).

15 Best Income Generating Assets

1. Farmlands

Having farmlands is a satisfying income-producing property (for obvious reasons) – food. Food is an essential aspect of living, making farmlands lucrative. My family used to own farmland in my hometown where we produce food items used as raw materials for producing other products, allowing us to get into partnerships with food-processing companies. So trust me, the perks are impeccable. 

As an investor, you can acquire farmlands in strategic locations (after thorough research) and employ professionals to cultivate them, focusing on high-demand crops such as cocoa. Alternatively, you could consider partnering with farming-based Real Estate Investment Trusts (REITS).

Also Read: Thinking of a High-Yield Investment? Think Land Banking

2. Blogs and Websites 

Looking for the best asset to make money? Blogs and websites are one of them. According to Glassdoor, bloggers make an average of $65,416 annually. 

These are online platforms that allow you to connect with a wider audience by sharing valuable content that either educates, informs, or entertains them. 

You can monetize your blog through different ways including affiliate marketing, display advertising, selling digital or physical products, and lead generation, among others. 

However, to build a successful blogging business, you need to consistently put out evergreen content, devote your time, and be patient. You never can tell – with the right dedication, blogging can become your full-time job. 

3. Peer-to-peer Lending

Popularly known as P2P lending, peer-to-peer lending involves lending money to individuals or businesses without the involvement of traditional bodies like banks and other financial institutions. 

Without being actively involved, you will gain a huge appreciation for your investment when the loan is repaid. 

However, P2P lending involves risks, but then again, which investment is risk-free, right? 

Therefore, be sure to do your due diligence before getting started. 

Want to get started as a P2P lender? You need to:

  • Register with a P2P lending company 
  • Confirm your eligibility by passing the checks
  • Decide on your desired interest rate
  • Lend money and get interests 

4. Digital Products

These are products that are created, sold, and distributed electronically. They don’t have a physical form and are entirely available online. Digital products include ebooks, online courses, software, stock photos, and templates.

Once created, you can close thousands to millions of sales especially when the product solves your target market’s pain points. 

Aside from getting an additional, rewarding, and passive cash flow, digital products are free from hassles common to physical products such as high production costs and oversaturation. 

Moreover, with proper research, an effective marketing strategy, and quality products, you stand the chance of having a global market reach. 

Also Read: 15 Best Platforms to Sell Digital Products Online for Profit

5. Stocks

One of the best income-producing assets today is stocks. Stock represents fraction ownership in a corporation. 

You are entitled to rights such as dividends, decision-making, and profits when you own a company’s stocks. 

Stocks were the first assets I bought when I decided to chase financial freedom. The best part? You don’t need a huge capital to begin I started with as low as $7! 

So, to get started, you should follow these four easy steps:

  • Adopt clear investment goals
  • Set up an investment budget
  • Open a brokerage account 
  • Decide on stocks to invest in

However, before getting started, I recommend you equip yourself with stock market knowledge and identify the best income-producing stocks to invest in.

6. Bonds

Bonds are loans given to finance businesses and government corporations for a stipulated time. The lender receives regular interest payments and their initial amount when the loan is due.

In simple terms, it involves you lending out funds to an individual or company for a certain period and they pay back with interest. 

Compared to stocks, bonds have fewer risks and offer steady cash flow but sadly have lower returns. 

Also Read:

7. Short-period Rentals 

Do you own properties (condos, vacation homes, and holiday homes) in high-paced environments that attract business activities or tourists? Then you should consider listing them out for short-term rentals. 

As the name implies, short-term rentals involve leasing out your housing properties for a brief period, usually ranging between a few days to a month.

Compared to long-term rentals, short-term rentals generate more revenue due to higher rates and demand fluctuations.

However, the amount you make from these assets largely depends on the location, community regulations, and property conditions. 

8. Real Estate

Real estate investment is one of the best and most chanted income-generating assets.

It involves purchasing a property to generate income either through rentals or appreciation. Investing in real estate can provide you with a stable and steady cash flow.

Take me for instance, in January 2019 I bought land and I kid you not, by November 2020 when I sold it, it had appreciated 7x my initial capital (it could have been more). 

Therefore, when properly planned and managed, real estate can be your ideal wealth-building and portfolio diversification scheme.

Does investing in real estate interest you? 

Then there are some factors you should consider:

  • Strategic location
  • Excellent property management 
  • Property condition 
  • Expected investment return 
  • Budget.

9. Mutual Funds

Mutual funds involve the collective collaboration of different investors to combine funds and invest in diverse income-producing assets, such as stocks and bonds.

They are usually managed by skilled fund managers responsible for identifying, purchasing, and selling profitable assets.

This is an amazing way to earn money and diversify your income portfolio without being actively involved. 

However, before investing, you should conduct thorough research. Ensure you understand the benefits and risks it comes with.

10. REITs

If you want to invest in real estate without being involved in the property management hurdles, then you should consider REITs. 

Real Estate Investment Trusts (REITs) are corporations responsible for purchasing, financing, and maintaining real estate properties – ranging from residential to commercial. 

Through these companies, you can venture into real estate without being directly involved. Your principal capital appreciates while you earn dividend income. 

To venture into this investment, ensure to:

  • Know the types of REITs thoroughly 
  • Seek consultation from a licensed professional 
  • Decide on the right investment options. 

11. Private Equity 

Private equity involves the provision of funds to private companies or organizations not already available on the stock exchange. These companies utilize the funds to improve and restructure the business and over time, they are sold off and the investors receive massive returns on their investment.

It possesses several advantages including the potential for higher returns on your investment, portfolio diversification, long-term investment, and access to early-stage opportunities. 

 However, I implore you to do your homework diligently before getting started with private equity investment. Make research, understand the risks involved, and ask the right people questions such as private equity analysts and investment bankers to understand the right industry to invest in and how to get started. 

So, does investing in private equity interest you?

 Here are four effective ways to get started:

  • Research and shortlist suitable investment opportunities. 
  • Look into each of the shortlisted companies ensuring they’re the right fit.
  • Reach an agreement with the company and proceed to invest. 
  • Lastly, completely improve the company from the initial state. Then, sell it off at a profit. 

12. Cryptocurrencies

You are probably no newbie to the term “crypto”, especially with the recent surge in its adoption leading to 562 million crypto owners globally (34% increase recorded from 2023).

So, what’s cryptocurrency? A cryptocurrency is simply a digital asset or currency protected by cryptography and isn’t run by the government or any financial setting. Bitcoin and Ethereum are the two most popular cryptocurrencies – I bet you’ve heard of them. 

Investment in the right crypto tokens can serve as money-producing assets offering various advantages, including:

  • Potential for higher returns on your investment. 
  • They are decentralized, making them free of any control or influence from the government and financial bodies. 
  • Secured execution of transactions due to the presence of blockchain technology. 
  • Portfolio diversification opportunities. 
  • The transactions are also fast, easily accessible, and involve low cost compared to traditional financial bodies. 

While they can serve as money-producing assets, I must inform you that cryptocurrency investment comes with a fair share of risks.

The market is highly volatile, meaning prices can change quickly and you may incur huge losses when the wrong tokens are invested in.

Therefore, before getting into crypto investment, you should have proper knowledge of the crypto market and assess your risk tolerance.

13. Royalties

As a creative, whether an author, photographer, musician, etc, you can create a continuous stream of income through royalties. Royalties are payments you receive from individuals or organizations that allow them to make use of your intellectual property. 

With royalties, you can get paid for what you enjoy doing without having to undergo the day-to-day struggle of managing it. See it as a way of getting value for your talent or intellectual property. 

For example; if you’re an artist or photographer, you can monetize your creativity by receiving royalties from stock image agencies. 

Royalties are among the best income-producing investments and compared to others they offer you maximum security. Your income isn’t dependent on interest rates and the stock market. 

Want to start receiving royalties? You should: 

  • Decide what asset you’d like to put out e.g. photographs, paintings, etc.
  • Develop the intellectual property and ensure to fully grasp the process of monetization. 
  • Register and license your property to enable others to utilize it in exchange for royalties. 
  • Join the royalties collection organization and agree on the terms.

14. High Yield Savings Account 

Do you want an investment opportunity that involves minimum management? You should consider getting a high-yield savings account.

 A high-yield savings account is a type of account wherein you get a higher interest rate on your money compared to the regular savings account, leading to a significant increase in your initial deposit. Examples of HYSAs are SoFi, LendingClub, etc.

While this isn’t exactly ideal for long-term wealth building, it’s suitable for short-term savings and storing money not needed immediately. With HYSAs, you can grow your money faster instead of letting it sit at home or in a traditional savings account. 

15. Start a Business

Owning a business is one viable way of generating a continuous income. And when properly managed, it could grow to become an income-generating asset. 

Look around you, most of the top guys around the world today are business owners. 

I’m not saying starting a business is a bed of roses – far from it. Compared to being an employee, it requires a lot of time, hard work, and energy. But not to worry, the rewards are worth it. 

However, I must point out that you don’t necessarily have to be successful in your first attempt. 

Most successful entrepreneurs you admire today e.g. Steve Jobs didn’t get it right on the first attempt. 

What I’m trying to say is that you’ll probably experience failures and setbacks when starting your business. But that shouldn’t discourage you. 

With time, perseverance, hard work, and consistency, I assure you that you’ll not only beat the ups and downs of building a business but grow it to be a wealth-generating asset.

At this point, I bet you’re wondering what business to start – well, whatever business you want to venture into, ensure it has these three characteristics:

  • Something you enjoy doing.
  • Profitability.
  • And solves an unmet need in the market. 

FAQs

What’s a good first asset to buy?

Stocks, bonds, farmlands, and real estate, among others, are all ideal first assets to buy when building your portfolio. Remember that whatever asset you choose to invest in should have growth potential and align with your financial goals.

What is the best asset to make money?

Stocks, real estate, farmlands, and all other assets I mentioned above have the potential to generate a lot of money. You simply need to be consistent, assess your risk tolerance, and consult the right people. 

What assets generate the most income?

Starting a business, REITs, crypto tokens, farmlands, stocks, etc can all serve as great income-generating assets. 

Final Words 

Getting income-generating assets should be a major concern for everyone, especially with the growing rate of inflation today. The increase in prices the last time I went shopping was worrisome. 

Therefore, to avoid hitting rock bottom and running out of money, you should consider investing in some income-producing assets including real estate, cryptocurrencies, stocks, bonds, and short-term rentals – remember to conduct research and consult the right people. 

Putting your money in any of the investment opportunities I mentioned in this article could turn out to be one of your best financial decisions ever – I promise, at least that was the case for me.

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Hafsat Ahmed is an SEO content writer and contributor at EntrepreneurBusinessBlog.com. You can connect with her via [email protected].

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