I love building my cash flow assets.
My favorite asset classes are two: 1 ) digital products; 2) dividend-paying stocks: every 3 months, I receive dividend payments without any effort or active work.
Why owning assets is such a great thing? Simply because they earn money even when you sleep.
This is why you don’t have to squander your salary by buying the newest iPhone, and instead, save money to acquire more and more assets.
When your assets will earn enough money for you to maintain your lifestyle, you no longer have to work.
Your assets will literally work for you, and you have reached financial independence.
Dividend-paying stocks are my favourite asset class, but there are many others.
In this post, I’ll share with you 7 examples of income-producing assets that you can invest in build wealth and reach financial freedom.
1. Dividend-Paying Stocks
A very popular income producing asset class are dividend-paying stock.
If a company generates profits, they can reinvest them into the business to grow it or they can decide to pay the surplus in the form of dividends to shareholders.
When you buy shares of a company that pays dividends, you will receive as a shareholder a regular dividend, generally, every three months.
Some companies are famous because they consistently increase their dividends year after year they are known as “Dividend Kings”.
These companies have increased their dividends, at least, for 50 consecutive years.
Here’s some of these companies.
- 3M
- Johnson & Johnson
- Coca-Cola
- Lowe’s
- Colgate-Palmolive
Look out at this website for a complete list of the Dividend Kings.
If you don’t like owning individual stocks, you can choose to invest your money in a dividend-paying stock index funds.
2. Rental Property
Another great cash flow asset is rental property.
You can buy a house to rent it out or decide to rent a part of your own house.
You will receive a consistent monthly cash flow simply by rent payments from your tenants.
If you have enough money to invest, you can also choose to buy several rental properties and rent them.
In this case, you will easily reach a certain amount of monthly cash flow by rent payments, enough to cover all your living expenses.
Short-term rentals
If you don’t have so much money to invest, you can decide to rent out a single room of your home.
Look at Airbnb and VRBO and learn how to make real money through short-term rentals,.
3. REITs (Real Estate Investment Trusts )
Another way to invest your money in Real Estate is a Real Estate Investment Trusts, aka REITs .
This is a company that owns multiple cash-flow-producing properties.
When you buy a share of a REIT, you will receive a monthly or quarterly dividend payments.
This is one of the simplest ways to own rental property and effortlessly earn a monthly income.
REITs are very similar to stocks and you can also invest in REITs index funds.
4. Peer-to-Peer Lending
This is a relatively new way to earn income.
A peer-to-peer lending platform lets people looking to borrow money match up with people looking to lend money
There always is some risk involved, but when you’ll join the platform you will decide what is your risk tolerance level.
5. Automatic Businesses
- Vending machines
- Car washes
- Storage Units
- etc
You can maintain many of them effortlessly.
These can be a completely passive way to get a consistent cash flow.
6. Websites
If you decide to buy a website, you can monetize it in many ways :
- Affiliate links
- Advertisements
- Memberships
- donations
- Publish sponsored posts and product reviews
- Create and sell a product (digital or physical)
It’s not easy.
It may take even a year to get any form of income from a website, but when you’ll get enough traffic you will see real money in your pocket.
If you don’t want to build a website from scratch, you could purchase one on a marketplace. Take a look on Flippa or Empire Flippers.
7. Digital Product
You can create software, app, worksheets, ebooks or online courses.
It won’t be easy to build a product from scratch, but, once you have built it, you can easily leverage and sell the product over and over again.
Conclusion
Building Cash Flow Assets takes time. You can’t do it overnight, buy don’t worry.
Rome wasn’t built in a day.
You have to find what asset class is easier for you to acquire.
Be consistent and patient. Your assets will grow over time, and produce increasing cash flow.
When your cash flow will pay your living expenses, you’ll be free.
