Assets that produce income are those businesses and investments that generate a constant revenue with just your minimal effort or even no effort at all. They are income producing assets as those investments that allow you to make money passively. Many investors use assets to pay all their living expenses. With a good income producing asset, you can give yourself freedom and control to explore other areas of investment and care less about money.
When we talk about investing in assets, their levels of risk significantly differ from one asset class to the other. There are safe income producing assets that produce lower income but have a lower risk. There are also higher income producing assets that equally have a higher risk. Let us have a close look at some of the best income producing assets you can start today;
Certificates of Deposits
A certificate of deposit commonly abbreviated as CD is a low-risk financial investment that is offered by banks. CDs work straightforwardly; you loan the bank money for a fixed amount of time, and you gain interest as agreed during this time. A typical length of time can be anywhere from three months to five years. During this period, you won’t be able to withdraw your money without the bank slashing a penalty on you. However, you are guaranteed that your money is growing at a fixed rate.
Just like a certificate of deposits, bonds operate the same way. The only difference is that instead of lending money to the bank, you’re lending money to corporations or the government. Bonds can be classified in three main ways; there are those that are extremely stable – with these ones, you know exactly how much you will get back when you invest. There are those with a guaranteed return – In this category, you can even choose the amount you want a bond for, be it one year, three years etc. The last category is those smaller in their returns ability, especially if we compare them to other aggressive investments such as stocks.
Real Estate Investment Trusts
Abbreviated as REITs, they are like the mutual funds of real estate. REITs are a collection of properties that are operated by a company – i.e. a Trust that uses a pull of money from investors to purchase and develop real estate. If you want to get involved in real estate, REITs offer a fantastic choice especially for investors who don’t want to be subjected to all the hustles of purchasing and financing the property.
A stock is considered to be a risky producing asset. The earning potential of riskier investments is high, and so is stock. To make money in stocks, you’re paid dividends. These dividends may be paid by companies to its shareholders each quarter. Other riskier investment options include property rentals, peer to peer lending and creating your own products. These products may be eBooks, online courses, podcasts, and webinars among others. Having a digital product may prove to be an effective way to make money on the move.
Have you ever wondered why some entrepreneurs and businesses seem to get almost everything right and prosper, while others do not? The key to success in these businesses lies in some secrets we do not know. Entrepreneurs rarely have the chance to speak about their experiences to share tips and secrets of their business success. If you study successful entrepreneurs, there are many things you can learn from them, be it their hard work or long hours they spend trying to make things happen.
The definition of success varies from one person to another. We all need some form of motivation to propel us to the next level. Based on research and feedback given by top performing entrepreneurs, there are some vital tips on secrets to business success.
Hard work breeds success. We all know that success is not achieved overnight. Success comes from hard work and dedication is required if you want to achieve success. Kevin Durant, a professional basketball player for the Golden State Warriors, once said, hard work beats talent when talent fails to work hard. Many successful entrepreneurs share that hard work is the single greatest competitive advantage as there is no shortcut to lasting success.
Today’s leading companies have achieved a lot due to their efforts on customer satisfaction. Many startups fail to reach their full potential because they focus on transactions instead of building customer relationships. No company can expect to grow without putting the right amount of effort to ensure customers are satisfied. Today’s customers want to have a personalized experience.
Have a Mentor
Research shows that a high percentage of entrepreneurs, – about 93 percent attribute their success to having a mentor besides them. Mentors help in regulating and actively participating in your growth. They teach you what to do and what not to do. Look for mentors who have built companies that you admire and spoke with them to learn their secrets. Find someone who is ready to tell about their failures and sacrifices.
Have a Winning Team
Identify your primary skills and that is well talented and have skills that complement each other. You need to hire people who are good at what they do and are determined to deliver you results. The starting point for your business growth and prosperity is selecting the right people for you. Focus on building a team rather than embracing individual skills. If you hire the wrong people, no matter what you do or even the techniques you employ, the end may not be so right.
Prepare for Hard Times
As an entrepreneur, you have to understand that businesses can be unpredictable. Things can get out of control to put you in a tough situation. It can be as a result of a competitor who launches a better version of your product or just a better business idea. Whatever the situation might be, be prepared to adapt and be flexible in case things do not go according to plan. When times become tough, be ready to embrace change and act accordingly.