Are you planning to grow your wealth or wondering about how to do that?
You may have few ideas in your mind, but you are not sure whether it will work in your favour or not. In 2023, having an income producing asset is as important as having meal twice a day.
I know this sounds a little cringe but diversifying your income is crucial to grow your investment portfolio as well as your month income. Investment Experts recommend you to start invest in stock market where you can have an exponential growth but selecting stock for you portfolio is a time consuming task and it involves risk of losing your capital.
So, what you can do to create an income producing asset? Let’s dive into 9 different ways you must try.
1. High Value Skills
High Value Skills are skills that are in high demand and can bring in a high salary in the job market. To acquire these abilities, you must have specialized knowledge, training, and experience in a specific profession.
If you are planning to learn high value skills, you need to first identify your interest and look for the education resources available on the internet or institutions. There are multiple ways to learn these skills such as books, tutorials, in-person courses, online courses and apprenticeships.
After learning these skills, I high recommend you to start building your portfolio by working on any project or offering your services for free. For example, if you are learning Digital Marketing, you can start offering Facebook Advertisem*nt or Search Engine Optimization services to build your portfolio.
Some of the Top High Value Skills Are:
- Programming and software development
- Data analysis and visualization
- Digital marketing
- Design and user experience (UX)
- Project management
- Financial analysis and modeling
- Copywriting and content creation
2. Dividend Paying Stocks
If you want to make few extra dollars in every 3 or 6 month then Dividend Paying Stocks are a great income producing asset.
Before moving forward, let me introduce you to Dividend Paying Stock. A Dividend Paying Stock is a share of a firm/company that share a fraction of its profit with their shareholders in the form of regular dividend payment. These payment are typically made quarterly or annually, but some companies do pay these dividend every month.
Additionally, the amount of income earns from dividend varies on the number of shares you own, how frequent the dividends are paid and dividend yield of the stocks you hold.
However, it is crucial to understand that not all firm offer dividend. So, I high recommend you to do some research on top dividend paying stock or consult a financial advisor before investing your money into stocks.
Also Read: Why You Shouldn’t Pick Individual Stocks?
3. Peer-To-Peer Lending
If you have extra money that you can lend then you can possibly make a fair income every month. This method is used by some of the most popular companies globally and they are making serious money which is commonly know as Peer-To-Peer Lending.
Peer-To-Peer (P2P) is a process of borrowing and lending money to individuals who are denied by the bank due to their bad credit history or cibil score. In order to be a part of these groups, you can get in touch with online financial platforms which works a mediator between borrowers and lenders.
The process of P2P is easy to understand and reliable. Suppose, if a borrower apply for a loan on P2P lending platform, the P2P lending platform will verify their document and credit history to check if they are capable of paying the money back.
After successful verification of document and eligibility of the applicant, the platform connect the lender with the borrower. Now the investor have to decide whether he/she wants to invest or not. Additionally, it is crucial to understand that P2P lending involves risk, as the borrower may default on their loans and investor may lose their money.
4. Rental Properties
If you have some saved up money, then investing your money into Real Estate can be a game changer. Rental Properties are residential and commercial properties which are purchased with an intention of generating rental income by leasing them to tenants. Rental Properties are of different types such as single family home, one bedroom apartment, office building, rental space for business owners and many more.
Also Read:What Is Rental Insurance And How It Works?
You can start investing in rental properties by signing up for a mortgage or cash. After successful purchase of rental properties, you have to find a person who is interested in renting your place but before moving forward, it is crucial to do background checking and credit history check.
If you are planning to buy a house in 6 month then do read a step by step guide on How To Save Money Buy A House In 6 Months?
However, it is important to note that rental properties includes risk. So, I highly recommend you to consult a financial advisor before taking such big financial decision.
Also Read:6 Common Myths About Rental’s Insurance
5. Stock and Equities
Also Read: How To Buy OpenAI Stock – Can You Invest In ChatGPT?
6. Vacation Properties
7. Bonds
8. REITs
8.5. Farm Land
Final Word
Investing any money is an individual choose but how and where you are investing is crucial. I know it is possible in 2023 to invest with few clicks through your smartphone but at the same time you can lose all your life saving in few clicks too.
So, before investing any more, try to consult with a professional finance advisor and try to analyze all the options available in your hand. This allows you to pick the best one that suits your needs and personality.
