Put money into your pocket working or not with our most profitable assets that will definitely make you rich. Welcome to iRicher-where high-quality content meets high-quality people. What’s the key to getting rich? Multiple income streams. 65% of millionaires have at least three income streams, and nearly 1/3 have five or more. If you want to find out the fastest and easiest way to get rich, then you better stay till the end to find out our top recommended asset to get you to millionaire-dom.
Number 10 – Rental properties Rentals can be a great asset for becoming rich. There are many types of rentals to choose from. A single-family rental may be the easiest with fewer tenants, fewer appliances, and overall, fewer things to break. Single-family properties can have less headaches too. With multi-family rental properties, you can have multiple tenants under one roof, and more money, but potentially more problems.
Airbnb is the classic short term rental money-making machine. It’s never been easier to rent out a place for a couple of nights. Some owners find it more profitable to rent out their property to a lot of different people over a short time, rather than the typical rental arrangement of one single tenant for a long time, with added maintenance of course. Or you can rent out your vacation dream house in the Virgin Islands. However, it’s certainly harder to make money from that obscure vacation house.
Number 9 – Certificate of deposits Certificate of Deposits are like savings accounts, except your bank won’t allow you to access your money for a certain amount of time without incurring a penalty. Banks like CDs because they get to keep and use your money for a longer amount of time, without having to hold your cash on hand in case you get a wild hair to buy the latest infomercial special. CDs are great for you because they pay higher interest rates than cash in a savings account. A CD paying 5% interest is a much better investment than simply a savings account. Although today there are mainly low-interest rates, so you'll be lucky to find a CD paying any more than about 2%, just enough to barely beat inflation. Number 8 – Bonds Interest paying bonds are basically IOUs from businesses to investors.
You invest a fixed amount into a bond, and the company agrees to pay you a certain percentage back. You can purchase bonds from all sorts of entities, including large and small companies, the federal government, state and local governments and more. Interest rates vary significantly, depending on your type of bond and the current interest rate environment. But in general, you can expect bonds to yield anywhere from 1-4%. Bonds are an excellent investment because they are more stable than stocks, which wildly fluctuate. Number 7 – Dividend paying stocks Now we’re getting somewhere with real wealth building power! When you purchase stocks, many of these companies pay out a portion of earnings to shareholders on a regular schedule. These are called dividends. There are few things more exhilarating than a big fat check with your name on it. Typically, the higher the dividend, the more established a company is. The percentage rate of dividends varies by company.
Think of it this way – for someone capable of living off $30,000 a year, a $496,000 investment with a 6% dividend could fund their entire lifestyle! The easiest way to gain some dividend exposure is through index funds, like Vanguard or even Betterment. Number 6 – Peer-to-peer lending Peer-to-peer lending is a growing market of “banking” which serves to cut out the large financial institutions from the lending process. The idea is simple: instead of consumers borrowing from banks, they can borrow from peers. Instead of carrying debt through credit cards, banks, or other high-interest rate options, you can borrow from your peers at a reasonable rate.
As an investor, you’re playing the role of the “bank” by providing your money to a consumer. In exchange for lending out your money, the consumer pays you interest. The biggest risk, obviously, is that consumers default on their loans, which impacts your return on investment. Number 5 – Savings accounts or money market accounts Savings accounts or money market accounts are probably the most basic income-producing assets. Although well-known and common, they are also one of the least profitable. Even though you will be making more interest than your average current account, you’ll be hard-pressed to earn anything close to a living on that interest. Still, it’s a start to the assets game. Like what you see so far? Hit the like button, do it now.
It really helps the channel and don't forget to subscribe and hit the notification bell to receive more enriching video content. Number 4 – Real estate investment trusts. If you aren’t into the tenants and home rental world, try out real estate investment trusts. Real Estate Investment Trusts are companies which own, invest in or manage income-generating real estate properties. REITs trade on the stock exchange, and you can purchase them just like you would the share of any other company. By law, REITs have to distribute over 90% of their earnings to shareholders, which can lead to some seriously high dividend rates. But take caution, as high yielding REITs tend to be extremely volatile. It’s important to remember the golden rule of finance – there’s no such thing as increased returns without increased risk.
Number 3 – Farmland Not what you were expecting? Well, you don’t have to be a farmer to profit off farmland. 39% of all farmland in the United States is rented or leased, so if you can’t raise an ear of corn to save your life, you can still get your income assets growing. By purchasing a piece of agricultural real estate, you can then rent out your land to farmers while you collect rent checks. Renting farmland can provide your portfolio with some strong diversification, since agricultural boom-bust cycles tend to have a very low correlation to the “regular” city-style economy.
Number 2 – Timberland Who says money can’t grow on trees? When you own a timber operation, your money literally can. As trees grow, they become more valuable for timber harvesting. Sure, it takes a bit of patience, but botany was never a speedy game. Depending on the type of tree, from seed planting to maturity takes 15-30 years. Bare timberland can be purchased for $100-500 per acre, and can be harvested for $500-2,000 per acre. Certain tree types, such as Walnut, veneer, and gunstocks, can sometimes produce over $100,000 of timber per acre! From 1905-2005, timber outpaced inflation by 3% per year, and the Timberland Index outperformed even the S&P 500, with an average return of 12.88% per year.
It’s about time to take trees more seriously. Number 1 – Basic businesses. Surprisingly, investing directly in boring businesses tends to be very profitable. Basic business can include anything that people regularly use like laundromats, car washes, coffee shops, bars and snack spots. Remember the wise words of George Soros: “If investing is entertaining, you’re probably not making any money. Good investing is boring.” Laundromats typically have less than 1 full-time employee and minimal ongoing expenses. An average laundromat can earn its owner $46,000 a year in passive income. Self-service car washes have the lowest start-up costs and bring in monthly revenue of $1,500 per bay, according to the US Census Bureau. On the other end of the spectrum, the average large tunnel or conveyor belt car wash brings revenue of $686,000 per year. Thanks to Starbucks making expensive coffee cool, coffee shops are a great investment. Coffee and tea costs pennies to make, yet sells for $3-5. If you’ve ever been to New York City and seen the mile-long food cart lines at 2 AM, you realise the potential in the late-night snack business.
Some of the best cash flowing businesses in the world are these low overhead, high margin options. Time to make a move on that pizza truck. New Text So iRichers, what’ll be your first asset? Let us know in the comment section. If you haven't already, hit the like button. Don't forget to subscribe and hit the notification bell to receive more enriching videos. Bye iRichers… see you in our next video..