21 Income Generating Assets That Will Make You Rich [2021]

Disclaimer: This post may contain affiliate links. Please read my disclosure for more information.

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Have you ever wondered what the secret is to financial success?

The answer is investing in passive income generating assets today so that you will have the cash flow tomorrow to live the life you want.

In fact, did you know that most millionaires have built 7 passive income streams to maintain their wealth?

The average millionaire has 7 income streams

Source: IRS

If you’d like to make passive cash streams with income generating assets, this article will be your go-to guide.

Keep reading.

Sneak Peek: Top 3 Income Generating Investments


Fine Art 👇

The Stock Market 👇

Crypto Interest Account 👇

What is an Income Generating Asset?


Income generating assets are investments that produce consistent, recurring streams of cash flow over long periods of time.

Basically, income producing assets help you earn money even when you sleep.

When you maintain a diverse portfolio of income generating assets, you will ensure you’re producing consistent income over time.

Income generating assets come in many different forms:

  • Rental income
  • Dividends paid
  • Interest earned 
  • Royalties received
  • Appreciation in value

Building a consistent cash flow means you won’t be shackled to your 9 to 5 job. 

Especially in today’s pandemic-ridden and volatile economy, it’s more important than ever to build income producing assets because we can no longer rely on our regular jobs. 

I should note, however, that to build passive income assets, you may have to make larger upfront investments with your:

  • Time
  • Energy
  • Money

Diversifying your portfolio not only means you are hedging your investments (aka protecting your investments) but it also means that you would be receiving passive income across several different income generating assets.

When one passive income asset fails, you can still rely on your other passive income assets to make you money.

21 Assets that Generate Income

There are so many different types of income generating assets.

In this blog post, I will explore some of the best income generating asset ideas, ranging from real estate investments to crypto interest accounts. 

Each income generating asset idea comes with its own set of pros and cons, so make sure you take some time to evaluate whether the investment is the best option for you. 

You’ll want to consider:

  • Risks Involved
  • Potential Return
  • Time Commitment
  • Minimum Investment

…And of course, you’ll also want to consider whether these are the best assets to invest in for you and your particular situation (and only you can make that decision). 

Let’s dive right in.

Income Generating Asset: Private Art Deals

1. Private Art Deals


Are you interested in multi-million dollar paintings?

Do you want to earn profits up to 30%+?

If you answered yes, then investing in blue-chip artwork could be the right option for you. 

Private Art Deals

Pros

- Portfolio diversification

- Protect yourself against inflation

Cons

- Illiquid

- Higher risk

- Fees are fairly high

Potential Return

8% to 30%+

Time Commitment

Minimal

Minimum Investment

Depends on the specific investment offerings available

Accredited Investors Only

No

Best Resource

Masterworks is a blue-chip (aka high quality) art investing app that allows the average Joe to invest in fine art, worth up to $30 million+.

The reason why I’m not opposed to investing in blue-chip artwork is that art is typically seen as a hedge (aka protection) against:

  • Inflation
  • Stock market volatility

Take a look at the chart below, which illustrates the correlation of contemporary art (which is what Masterworks specializes in) versus the ups and downs of the stock market:

graph of comtemporary art correlation factor 1995-2020

This chart shows that when the stock market goes down (represented by the S&P 500), the contemporary art market does not go down. 

Why is this a good thing?

If you’re in the middle of a recession, any investments you own that are in the stock market will go down. 

However, any investments you own that are in fine art, will probably not go down (based on the correlation chart, above). 

I should also note that the performance of fine art has exceeded the performance of the stock market over the past 25 years, from 1995 to 2020, as illustrated in the following chart:

graph of contemporary art annualized performance 1995-2020

From the 1995 to 2020 time period, contemporary art yielded an average annual return of 14% while the S&P 500 (representing the U.S. stock market) returned only 9.5%. 

To clarify, I’m not saying to go and sell every stock position you own and instead invest everything in Masterworks. That would be a pretty bad idea, especially because investing in the fine art market isn’t all rosy.

In fact, there are several cons if you’re looking to invest in the art world, including:

  • The fees are typically high
  • The art world is unregulated
  • Your money is locked for 3 to 10 years

I am, however, saying that investing in fine art could be a lucrative idea.

Below are a few more facts and figures you may want to know before signing up with the Masterworks art investment platform.

Masterworks

Founded

2017

Average Fee

1.5% per year + 20% of artwork sale

Income Generating Asset Type

Blue-Chip Art

Just remember to do your research before you jump head-over-heels into any income generating asset.

Income Generating Asset: Public Non-Traded REITs

2. Public Non-Traded REITs


Want to invest in income generating assets, specifically real estate?

Do you want to find a way to avoid putting in the hard (and sometimes dirty) work, like dealing with tenants, making repairs, etc.? 

…Then you may want to look into investing in public non-traded REITs (aka real estate investment trusts).

Public Non-Traded REITs

Pros

- Low fees

- Anyone can invest

- Portfolio diversification

- Generate passive income

Cons

- Illiquid

- High risk

- May be difficult to understand

Potential Return

7% to 12.42% (assuming you reinvest)

Time Commitment

Minimal

Minimum Investment

$10

Accredited Investors Only

No

Best Resource

Keep in mind that investing in real estate is one of the top strategies used by the wealthy and famous.

Now you can too, thanks to modern technology.

Specifically, you can invest in what is known as real estate investment trust (aka REIT, pronounced “ree-t”) through popular apps like Fundrise 👇

As a REIT investor, you don’t really get to physically “see” or visit the investment properties (unless you decide to pay for a plane ticket to explore the properties).

You put your faith in the REIT.

Here is why Fundrise could be a good passive income asset for you:

  • You want to diversify your portfolio
  • You want to earn a passive income stream 
  • You want to protect your investments during a recession
  • You want to invest in real estate without putting in the hard work

What I like about Fundrise is that you can start your real estate investment journey with just $10, while most real estate investment deals start with minimums of $5,000+.

fundrise real estate portfolio

Based on the image above, Fundrise diversifies its REIT investments in 3 particular property types:

  • Apartments
  • Commercial
  • Single-family

Diversification, especially in the real estate sector, is key.

Over the past 6 years, Fundrise has performed right in line with other real estate portfolios like Vanguard, as you can see below:

fundrise vs vanguard total stock market ETF vs vanguard real estate ETF

Source: Medium

Fundrise claims that its goal is to provide investors with consistent returns over the long term.

Long-term consistency is more important than short-term gains.

Fundrise is actually one of the few real estate investing apps that offers a phone app, so your REIT portfolio becomes a lot more accessible.

Below are a few more facts and figures you may want to know before signing up with Fundrise:

Fundrise

Founded

2010

Default Rate

7% to 12.42%

Average Fee

1%

Real Estate Types

- Apartments

- Commercial

- Single family

Just remember to do your research before you jump head-over-heels into any income generating asset.

Income Generating Asset: Crypto Interest Accounts

3. Crypto Interest Accounts


Are you into cryptocurrency?

Want to earn passive income?

If that’s the case, I might have one of the best income generating assets lined up for you.

Keep reading.

Crypto Interest Accounts

Pros

- Earn passive income from your cryptocurrency

- Interest rates are much higher than regular savings accounts

Cons

- Risky

- Not FDIC insured

- Fees are typically higher

Potential Return

Depends on how much you invest

Time Commitment

Low

Best Resource

Cryptocurrency has become a hot topic over the past year or so – especially with Millennials who have seemed to take a liking to crypto investing. 

In fact, 73% of 20 to 38-year-olds have said they are interested in investing in cryptocurrency

73% of 20 to 38-year-olds have said they are interested in investing in cryptocurrency

Source: YPulse

Time and time again, I read how millennials are driving the Bitcoin and cryptocurrency economy – and I certainly don’t see that stopping at any time soon.

While Bitcoin and cryptocurrency, in general, is fairly risky, you could still stand to earn some money – specifically through passive income – if you consider opening an interest account through the BlockFi investment platform 👇

BlockFi is arguably a leader in the cryptocurrency industry because the platform has pioneered several revolutionary themes when it comes to crypto investing.

Below are some ways BlockFi sets itself apart:

Even if you’re a bit hesitant about cryptocurrency, it might be worth opening an account (which is free) and taking a look at what you could be offered. 

There are 3 steps involved when opening a BlockFi account:

  • Input your personal information
  • Link and transfer your USD to your crypto account
  • Start trading

BlockFi offers you the chance to not only trade your cryptocurrency but also to save it and earn very high interest on your crypto. 

I should note that if you convert your USD into stablecoin (which are essentially a cryptocurrency that represents the value of a fiat currency, like the US Dollar), you’ll probably get a much higher interest rate.

Let’s take the USDC as an example.

Take a look at how much interest you earn on your savings account at your bank.

Now, take a look at how much interest you could earn with BlockFi, if you held a USDC stablecoin (which is the digital, cryptocurrency version of $1 US dollar).

blockfi usdc interest rates september 2021

Chances are, at your regular savings account, you’re probably earning around 0.01% on your cash, while at BlockFi, you could be earning up to 8% interest on your USDC stablecoin.

I have spoken to a few folks in the past, who have said that they use BlockFi’s high-interest savings account as their monthly income stream!

For example, let’s say that they park $1,000,000 in USDC in BlockFi, then they would earn 8% each year, which would equate to about an $80,000 annual income stream (pre-tax).

While I wouldn’t recommend parking $1 million in BlockFi (unless $1 million is a very small part of your net worth), I still think the basic concept of earning an 8% interest stream on your stablecoin is pretty interesting (no pun intended).

Bonus: New BlockFi clients can get up to a $250 bonus when you deposit $100 or more in crypto! Check out BlockFi here.

Income Generating Asset: Private Real Estate Loans

4. Private Real Estate Loans


If you’re an accredited investor and want to earn passive income, then you might want to consider investing in private real estate loans.

Private Real Estate Loans

Pros

- Transparent website

- Earn passive income

- Portfolio diversification

Cons

- Debt only investments

- High minimum investment

- For accredited investors only

Potential Return

6% to 8%

Time Commitment

Minimal

Minimum Investment

$1,000

Accredited Investors Only

Yes

Best Resource

PeerStreet is a debt-only online real estate investing platform for accredited investors to invest in high-quality private real estate loans.

Before you keep reading – I do want to mention that PeerStreet is a real estate investing platform that is strictly meant for accredited investors.

If you don’t qualify under these 2 definitions, then skip this section and move on to the next income generating asset idea.

If you qualify as an accredited investor, then keep reading.

PeerStreet could be an optimal real estate investing platform for you, if you’re:

  • A real estate investor
  • A long-term investor
  • A high-risk investor

Just remember that because you’re investing in real estate debt, you are taking a slightly higher risk versus if you just invested in physical real estate assets.

The process to set up your PeerStreet investing account (and ultimately get paid) is actually pretty simple:

how peerstreet works

PeerStreet’s default rate (aka the number of times you won’t get your money back) is a bit higher than other real estate investing platforms.

However, in the grand scheme of things, 96% of PeerStreet loans were paid off to investors, so the platform itself is relatively reliable.

I should also note that PeerStreet has paid out over $225 million in interest payments to its investors.

peerstreet interest returned

While PeerStreet in general is a little bit more high risk for investors, the platform does offer countless data points for you to analyze, research, and ultimately determine whether a particular real estate investment is, in fact, a good fit for you.

PeerStreet’s transparency is something that I, as a potential investor, truly appreciate.

Finally, there are a few additional points you should keep in mind before investing with PeerStreet:

PeerStreet

Founded

2013

Default Rate

6% to 8%

Average Fee

0.25% to 1%

Real Estate Types

- Refinancing

- Industrial loans

- Multi-family loans

- Rental investments

- Residential acquisitions

- Commercial real estate loans

Just remember to do your research before you jump head-over-heels into any income generating asset.

Income Generating Asset: Dividend Paying Stocks

5. Dividend Paying Stocks


One of my favorite income generating assets is receiving dividends when I 
invest in the stock market.

Dividend Paying Stocks

Pros

- Form of passive income

- Attracts high-quality investors

- Indicate the company is likely profitable

Cons

- Are taxed

- Dividend cuts could decrease stock prices

- Could reduce companies funding sources

Potential Return

Unlimited

Time Commitment

Minimal

Minimum Investment

$100

Best Resource

It might make sense for you to invest your money into dividend paying stocks that can help build long-term wealth.

In fact, from 1927 to 2014, dividend stocks saw annual growth rates of 10.4%, while growth stocks that did not pay dividends only saw a growth rate of about 8.5%.

dividend stocks grew at 10.4 percent from 1927 to 2014

Source: Fool

This study certainly underlines why it might be advantageous to having dividend paying stocks as a part of your investment portfolio.

Let’s back up a little.

What is a dividend?

Basically, a dividend is the company’s way of thanking its investors for owning the company stock and not selling it.

The dividend paying companies don’t want to lose their investors, which they certainly could if they lowered their dividend payout.

So, companies typically increase their dividend payouts when stock prices are falling.

Take a look at the chart below.

sp500 dividend growth rate from 1900 2018

Dividend growth rates are typically more stable than stock market growth.

Cutting a company’s dividend is typically a last resort because that means a company is facing financial stress.

And for that reason, I’m a pretty big fan of investing in dividend stocks.

One of the best ways to invest in dividend stocks is by opening an account through one of the most popular investing apps, M1 Finance 👇

M1 is an awesome investing app for those investors who are committed to the long term.

Once you’ve opened your M1 account and linked it with your bank account, you can start investing in dividend producing stocks – or even dividend focused ETFs (aka exchange traded funds).

With M1, you can either build your own portfolio or you can choose a premade portfolio from the M1 Finance investment team.

Instead of calling it portfolio, however, M1 Finance calls it a “pie.”

m1 finance "the pie"

If you’re serious about opening an account with M1 Finance, then I would suggest you focus on investing automatically and for the long term. 

Your bank accounts will thank me later.

Income Generating Asset: Your Car

6. Rent Out Your Car


Do you have a spare or unused car?

If you do, then you can earn up to $1,200 per month simply by renting out your car!

Renting Out Your Car

Pros

- Earn passive income on your unused car

Cons

- You may be liable in the case of a crash

- You don’t know how the renter will treat your car

Potential Return

$1,000+

Time Commitment

Medium

Minimum Investment

None – assuming you already have a car

Best Resource

HyreCar is a car rental app that allows you to make passive income by renting out your unused car to ride-sharing service drivers like those working for Uber/Lyft.

HyreCar’s focus is to help plug the gap for the ridesharing marketplace (think: there are not enough drivers with suitable cars for Uber and/or Lyft, and Hyrecar is looking to rent out cars to Uber/Lyft drivers).

Talk about side hustling!

The reason why I’m particularly excited about HyreCar is that cars, in general, are depreciating assets – aka, you lose money virtually the second you purchase a new car.

In fact, if you buy a brand new car, by the end of the first year, your car would have likely already depreciated up to 30%.

your new car would have depreciated up to 30 percent by the end of year 1

Source: Nerdwallet

Below is a chart outlining the gradual depreciation of a car:

New Car Depreciation

New Car Value

$50,000

Value After 1 Minute

$45,000

Value After 1 Year

$40,000

Value After 2 Years

$34,000

Value After 3 Years

$28,900

Value After 4 Years

$24,567

Value After 5 Years

$20,833

So, if you bought a brand new car, then 5 years from now, your car would have lost over an estimated value of $29,167 – or it would have made a negative return of -58.33%.

Clearly, new cars lose value over time.

I would caution both drivers and people renting out their cars through HyreCar to take a look at your insurance policies.

Here’s how the insurance policies work for HyreCar drivers:

HyreCar Insurance Policy

You’re driving the car but not yet working for Uber/Lyft

HyreCar’s insurance policy covers you

You’re working for Uber/Lyft

Uber/Lyft’s insurance policy covers you

While HyreCar doesn’t require the driver to maintain a personal auto insurance policy, Uber/Lyft does, so technically speaking, you wouldn’t be able to get around the insurance side. 

You can rent cars anywhere from $20 to $50+ per day, depending on the type of car that you’re driving.

Here’s how you can rent a car on HyreCar and start earning money:

  • Create a HyreCar account
  • Submit your application for the car you’re looking for HyreCar suggests to apply between 5 to 10 cars, and you’ll only get charged for the car that you’re actually driving
  • Pass a background check
  • Receive & upload documents – You’ll receive 3 documents (vehicle registration, 19-point inspection report, HyreCar rideshare insurance) that you’ll have to upload to your Uber/Lyft accounts
  • Pick-up/Drop-off the car

Whether you’re the person renting out your car, or whether you’re the person renting a HyreCar to drive for Uber/Lyft, this is a great opportunity to earn money and build wealth.

Income Generating Asset: High-Yield Savings Accounts

7. High-Yield Savings Accounts


Did you know that one of the easiest income generating assets is opening a 
high-yield savings account online? 

Here’s how you can make passive income without moving a finger:

High-Yield Savings Account

Pros

- FDIC protected

- Earn passive income

- Great for emergency savings funds

Cons

- Compared to stock market returns, the yield is very low

Potential Return

Based on the yield of the savings account

Time Commitment

Minimal

Minimum Investment

$250

Best Resource

To build your financial future, it’s always a good idea to first prepare an emergency savings fund in case life throws you a curveball and you have to pay unexpected costs. 

The only time you should be using your emergency cash is… you guessed it… in the case of an emergency!

How much does your bank savings account pay you in interest?

Given the current low-interest-rate environment, I would probably assume you’re being paid around 0.01% to 0.10% = at the most.

If you’re ready to get started and open your own high-yield savings account, I would suggest checking out Axos Bank 👇

Here’s why I like Axos Bank:

  • FDIC insured
  • No maintenance fees
  • Interest is 10x the national average
  • No monthly minimum balance requirements

I should note that you’ll need $250 to open an account. 

If you want an income generating asset and are looking to stash $1,000’s of dollars in a safe and easily accessible place, then Axos Bank would be one of my top picks.

Income Generating Asset: Yourself

8. Invest in Yourself


Did you know that arguably one of the highest-yielding income generating assets is you? 

It happens when you start investing in yourself.

Investing in Yourself

Pros

- Unlimited income

- Work from anywhere

Cons

- High upfront time commitment

- Potential high upfront financial cost

Potential Return

Unlimited

Time Commitment

High upfront

Minimum Investment

$0+

Best Resources

I can’t say how many times I’ve heard the saying that you should always invest in yourself first.

You know what? The saying is true.

When you invest in yourself, you earn the highest ROI.

That’s because knowledge is power.
And power means money.

In fact, a general rule of thumb I have both read and heard about is to invest about 3% of your gross income back into yourself.

3% of your gross income should be invested back into yourself

Source: 48 Days

Remember that success doesn’t come with shortcuts – you will have to put in the time, energy, and money to achieve your goals.

When you invest money and time in yourself, you are virtually guaranteeing your own future success. You just have to start.

However, I am saying that you should consider some education alternatives, like investing your time and money in programs like Masterclass 👇

Recognize any of the instructors?

Masterclass is a subscription service (as of September 2021, starting costs begin at $15 per month) and offers you access to some of the coolest classes with some of the coolest instructors. 

Take a peek at what classes they offer:

  • Writing
  • Entrepreneurship
  • Economics & Society
  • Business Leadership
  • Art of Communication

…And the list just keeps going.

While Masterclass drops some serious celeb names, the classes that are offered may not go into the nitty-gritty details – and they also aren’t structured as an online MBA.

If you’re looking to learn about something that goes into much more depth – as in, you’d like to complete an online MBA for a fraction of the cost of a college MBA – then you may want to check out Udemy 👇 

Udemy offers in-depth courses including:

  • JavaScript
  • Blockchain
  • Deep Learning
  • Ethical Hacking
  • Real Estate Investing
  • Lots more

The point is this: When you start investing in yourself, your ROI will be unlimited.

Income Generating Asset: Index Funds

9. Invest in Index Funds


Another one of my favorites is 
investing in index funds to earn passive income.

Index Funds

Pros

- Very liquid

- Low-cost fees

- Long term growth

Cons

- Less flexibility

- May have limited gains

- Very unlikely to outperform the market

Potential Return

Unlimited

Time Commitment

Minimal

Minimum Investment

$100

Best Resource

Have you ever heard of the Buffett challenge?

Warren Buffett, one of the richest men in the world, is very well known for his stance on investing: Invest in low-cost, unsexy, index funds.

According to Warren, index fund investing is cheaper, better, and more profitable than investing in “sexy” investment products like in hedge funds.

Did the hedge fund industry win?

No!

Here are the results:

S&P 500 Return Hedge Fund Return

85.40%

22%

Why does it seem like the S&P 500 index fund outperforms the “upper class” and glitzy hedge funds almost every time?

The main reason is due to the astronomically priced fees that come along with hedge funds.

If you want to have the privilege to invest in hedge funds, you need to pay up – and typically that means you’re paying the typical “2 and 20” fee structure:

  • 2% per year based on the assets under management 
  • 20% performance fee, charged on the profits generated

Arguably, you’re already looking at a -22% return – before you even start investing with hedge funds!

On the other hand, index funds can save you – and make you – a lot of money.

s&p 500 2017-2021

Source: Google Finance

As you can see, over the past 5 years, the S&P 500 index fund has been steadily increasing in value.

While there will always be some sort of volatility when it comes to investing in the stock market, the good news is that if you zoom out and if you look at the bigger picture, chances are, you’ll make a positive return in the stock market.

When it comes to successful investing (just as Warren Buffett preaches), you need to zoom out and focus on the long term. 

And that’s where investing in income generating assets like index funds could get the job done.

Here is a list of the pros and cons of index fund investing:

Pros Cons

Simple

Not flexible

Liquid

Could have tracking errors

Low fees

Can never outperform the market

Diversify your portfolio

May have management differences

Personally speaking, one of the most important reasons why you would want to invest in index funds like the S&P 500 is because of the:

  • Low-cost
  • High-quality

By low cost, I mean that because index funds are passively managed, you typically won’t be charged a high fee (aka expense ratio) for the privilege to invest in an index fund.

The lower the expense ratio, the more money in your pocket. 

M1 Finance is an awesome investment app for those of you who are serious about starting your long-term investing journey

Here’s a little about M1 Finance:

  • No trading fees
  • No management fees
  • Portfolio is customizable
  • Fractional share investing

You will need at least $100 to start investing in a regular, taxable account and you’ll need at least $500 to start investing in a retirement account (aka an IRA). 

The most important part is that you start investing today.

Income Generating Asset: Become a Business Owner

10. Become a Business Owner


Have you ever dreamed of earning income even if you’re retired? 

One way is by investing in your own business and becoming your own boss.

Owning a Business

Pros

- Satisfaction

- Unlimited income potential

- Ability to become financially free

- Ability to build generational wealth

Cons

- Stressful

- Steep learning curve

- High upfront time commitment

- Often a high financial commitment

Potential Return

Unlimited

Time Commitment

Very high

Minimum Investment

Depends on the type of business

Do you want to know one of the fastest ways to becoming a millionaire in your lifetime? 

It’s called becoming a business owner. 

I’m not kidding: 66% of millionaires are business owners. 

66% of millionaires own their own business

Source: The Millionaire Next Door

In other words, if you start your own business (and if you put in 110% effort), then you have a much, much higher chance of becoming a millionaire versus if you “just” remained an employee for the rest of your life.

Of course, there is nothing wrong with being an employee.

In fact, being employed is often much less stressful than being a business owner, you have less responsibility, less liability, and arguably you also have less financial risk. 

However, running a business is not all rainbows and butterflies. 

Here are some red flags that may indicate you’re not cut out to be a business owner (which is totally fine, by the way!):

  • You procrastinate
  • You fail to take action
  • You enjoy the comfort zone
  • You’re not familiar with marketing
  • You aren’t willing to put in the extra work

If your goal is to become a business owner, you cannot let failure hold you back.

In fact, more than 50% of businesses fail after the first 5 years. 

50% of businesses fail after the first 5 years

Source: Statistic Brain

The statistics get even worse, indicating that over 70% of businesses fail after 10 years of starting.

70% of businesses fail after 10 years of starting

Source: Entrepreneur

If you’re really looking to become a business owner, then you’ll have to accept that becoming a millionaire isn’t going to be a linear process.

In fact, studies suggest that the average millionaire actually goes bankrupt 3.5 times on average before they become successful.

The average millionaire goes bankrupt 3.5 times before they become successful

Source: The Millionaire Next Door

While I’m not trying to discourage you from pursuing your dream of becoming a business owner, I also don’t want to make it sound like being a business owner is easy – because it’s not.

It’s going to take:

  • Time
  • Effort
  • Energy
  • Failure
  • Hard work

Instead of working a 9 to 5 job, you’ll probably be living, eating, and breathing your business because your business will likely consume almost every minute.

At least that’s what my business does to me. 

However, because I love what I do, I don’t mind it – in fact, I love working on weekends, holidays, etc. because I feel like I’m getting ahead while everyone else is taking a rest.

While passion is a key ingredient, it’s not everything.

To become a successful business owner, you’ll also have to start learning additional things, like:

  • Sales
  • Marketing
  • Advertising
  • Contract law
  • Leading teams
  • Managing your money
  • Understanding areas of liability

You have to become an expert in virtually every field of your business. 

Since most of us didn’t go to business school or received an MBA, understanding certain aspects of a business can become tricky – and demotivating. 

That’s why I suggest you take a course on the online teaching platform Udemy 👇

Udemy offers an online MBA course for a very low cost (relative to what most MBA’s would actually cost you).

This is where you can learn the ins and outs of running a business and how you can implement the tips to run your business successfully, too.

Income Generating Asset: Build and Sell a Course

11. Build and Sell a Course


Are you an expert on a specific topic?

Do you enjoy helping people excel in life?

If so, creating and selling a course could be the right next move for you.

Building & Selling Courses

Pros

- Income is unlimited

- Earn passive income

- Share your knowledge with others

Cons

- High upfront work

- Must provide in-depth value

- High upfront time commitment

Potential Return

Unlimited

Time Commitment

High

Minimum Investment

$0

Best Resource

The first time that someone told me that they were earning $5,000+ per month just by selling their online course, I couldn’t help but grin a little.

They had to be exaggerating, right? 

The truth was, they were not exaggerating – in fact, just today I found out that the same person was earning over $10,000 per month now in passive income just by selling her course. 

You can create a course for just about anything and make money:

  • How to flip used items for cash
  • How to become the perfect gardener
  • How to build a better social media presence

So, how do you create a course and promote it? 

Check out my steps below:

  1. Know what you’re good at
  2. Create your course
  3. Promote it
  4. Sell it

Let’s take a closer look at what I mean by these steps:

Step #1: Know What You’re Good At

Know your strengths, and know your weaknesses. 

To write an epic (and profitable) course, you need to know what you’re awesome at, and specifically what it is that people come to you for.

Here’s how you can start evaluating your strengths:

  • When do you people come to you for help?
  • What’s your area of expertise?
  • What do you enjoy doing?

One thing that I’ve learned the very hard way is that you won’t be successful at creating a course if you’re not passionate and excited about the subject. 

Step #2: Create Your Course

Now that you figured out what you’re good at, it’s time to start creating your own online course. 

You can build and sell courses in many different formats.

Below are some common formats:

  • Record a video
  • Write an eBook
  • Prepare a PowerPoint

Generally speaking, the most profitable courses that I’ve seen have been built on the online course platform, Teachable 👇

In fact, Teachable is the course platform that is used by the creator of Making Sense of Affiliate Marketing (and she earns over $50,000 per month just from selling this particular course!).

Step #3: Promote Your Course

You could create the most epic and the best course in the world, but without promoting your course, you probably won’t be successful in selling it. 

That’s why it’s critical to promote your course. 

Here are some ways you can promote your course:

  • Build a social media following
  • Promote your course on your website
  • Promote your course in your newsletter
  • Promote your course using paid advertising
  • Find others to affiliate for your course and promote it on their media platforms

Step #4: Sell Your Course Using an Online Platform

Once you’ve created and marketed your course, it’s time for the fun part – actually selling your course and pocketing the cash!

One of the best platforms is Teachable, but it’s not the only platform.

Other course platforms include:

  • Udemy
  • Gumroad
  • Skillshare

Depending on the type of platform you use, you might have to pay a small fee (typically a percent) of your overall sales, or you might have to pay a monthly subscription fee to use the online course platform.

Income Generating Asset: Your Property

12. Rent Out Your Property


Do you have unused space in your home (aka you have an extra bedroom/guest bathroom)?

Do you want to convert that unused space into an income generating asset? 

If you said “yes”, then you might want to consider renting out your property.

Renting Out Property

Pros

- Earn passive income from your property

- Someone else pays off your mortgage for you

- Your property continues to appreciate

Cons

- Dealing with tenants

- Typically a lot of work

- Maintaining the property is your cost

Potential Return

Depends on local rent rates

Time Commitment

Medium

Minimum Investment

Depends on your property & maintenance fees

Unused space in your house can cost you money, time, and potentially energy cleaning the unnecessary space. 

Here’s how you can flip the script: Consider renting out the unused space. 

Did you know that 35.9% of US households rent out their homes?

35.9 percent of US households rent out their homes

Typically speaking, rental income is also a fairly stable source of income – everyone needs a place to live.

Below is a neat chart to show you how much you could charge for rent, just based on your geographic location:

median gross rent by state

While it might sound like renting out your unused space could be a fun and great income generating asset – I should caution you that there is much more than meets the eye when it comes to renting out property.

The worst-case scenario is when your tenant refuses to pay, and you cannot legally force them to leave without jumping through many costly and timely hoops.

If you are confident in your tenant, then I would suggest you consider opening an account with the rental management app RentRedi 👇

RentRedi helps you manage your tenants’ requests, collect rent, etc.

RentRedi is basically your virtual assistant that keeps track of all rental-related things to make your life easier.

If you feel like short-term renting is more up your alley, you could also always consider AirBnB as a way to rent out unused space.

Income Generating Asset: Your Digital Designs

13. Sell Your Digital Designs


Are you the creative type?

Do you want to learn more about one of the best income generating assets for digital design artists?

I might just have your answer.

Selling Digital Designs

Pros

- Make money designing and selling your art online

Cons

- Could make little profit

- Might be time-consuming

Potential Return

$50 to $1,000+ per month

Time Commitment

Medium

Best Resource

Did you know that you can earn passive income if you create and sell your own digital designs on platforms like Etsy?

Joining and starting a shop on Etsy is free – however, you will be charged listing fees, transactions fees, taxes, etc.

You can also always opt into Etsy Plus for more bells and whistles, at which point you’ll have to pay a monthly subscription fee.

etsy

You can search for virtually anything on Etsy, and chances are that you’ll probably find what you’re looking for – for a relatively low price, too.

Here’s when creating your own digital designs might be the best step for you:

  • You love being creative
  • You want to diversify your income
  • You don’t want to rely on your 9 to 5 job income

If these points describe you, then consider downloading the digital design app Canva 👇

Did you know that this website (and my Twitter profile) are all created using Canva? 

I virtually live in Canva – and if you want to make a lasting impression with your audience through digital artwork, then I suggest you consider Canva, too. 

Here’s how Canva works:

  • Sign up for the free or paid version
  • Customize thousands of individual templates
  • Edit photos even if you don’t have extensive editing knowledge

Canva has more than 50,000 custom templates to choose from – and each one you can drag, drop, and edit further on Canva’s customizable template. 

canva dashboard

Here’s an example of how Canva’s interface looks.

It’s clean, it’s intuitive, and you can drag, drop, and edit pictures without needing experience or a lot of knowledge (as you would with Adobe Photoshop).

Coming from a non-design background, Canva is perfect for my skill set and knowledge base – and it really pulls together the look of my website.

Income Generating Asset: Money Market Accounts

14. Money Market Accounts


Want to know one of the easiest passive assets you can set up today and earn a little money on the side? 

Then setting up a money market account could be the right option for you.

Money Market Accounts

Pros

- Liquid

- Easily accessible

- Typically low fees

- Easy passive income stream

- Higher interest rates than savings accounts

Cons

- Does not earn high returns like the stock market

- Typically higher minimum balance requirements

- Typically withdrawals are limited

Potential Return

Depends on the interest rate

Time Commitment

Low

Minimum Deposit

$100 (for CIT Bank)

Best Resource

The average savings account just doesn’t seem to cut it anymore.

Interest rates are below average (in the September 2021 interest rate environment, they’re hovering around 0.01%) and it’s important to get the biggest bang for your buck.

Enter CIT Bank’s Money Market fund 👇

Money market funds typically pay a higher interest rate than what your average savings account pays you.

If you’re interested to compare how this CIT Bank’s interest rate (0.45%) compares to your savings account interest rate, log into your savings account right now or call up your bank rep to check out your interest rate.

There is a very high chance that your savings account interest rate is lower than what a money market account could offer.

By FDIC insured, I mean that money market accounts offer you insurance of up to $250,000 per account owner in the case the bank fails.

Typically speaking, however, money markets often have minimum deposit requirements (in CIT Bank’s case, it’s $100), so just make sure you know what you’re signing up for first.

For example, in the case of CIT Bank, you are limited to 6 transactions per statement cycle. Anything over 6 transactions would be charged an excess activity fee.

Depending on your goals, a high-yield money market account could help you save for some big milestone goals.

If you’re ready to earn some passive income on your cash, while saving for major life milestones, then consider opening a money market account with CIT Bank.

Income Generating Asset: Your Land

15. Rent Out Your Land


You don’t just have to rent out your building space to earn passive income.

In fact, you can also consider renting out your land with little to no maintenance.

Renting Out Your Land

Pros

- Little maintenance

- Easy passive income source

Cons

- You may have to hire lawyers to write up contracts

- Time-consuming when you’re looking for viable renters

Potential Return

Unlimited

Time Commitment

Medium to High

Minimum Investment

Depends on the cost of the land

Renting out land could be a lucrative option for you, especially if you own fertile farmland that could be rented to farmers for crops. 

In reality, the amount of passive income you could generate from a land rental depends on several factors, including:

  • The use 
  • The size 
  • The location 
  • The soil fertility

While you can certainly rent out your fertile land to farmers who are looking to produce crops, you can also rent out your land for:

  • Gardening
  • Storage purposes
  • Grazing for animals 

There are several websites you can use to rent out your land as one of the fastest (and arguably easiest) income generating assets:

Rental Purpose Potential Resource

Rent your land for storage

StowIt.com

Rent out your land for gardening

Shared Earth

Rent out your farmland

Tillable

Things might get a little more complex just before you rent out the land, since you may have to draft up a contract (which I highly recommend), so you may have to hire a contract lawyer just to be safe.

Income Generating Asset: Reselling

16. Reselling


Do you enjoy buying and selling items for a profit?

Then reselling could be for you.

Reselling

Pros

- Anyone can learn it

- Diversifies your income streams

Cons

- You’ll likely need to make an upfront investment

- The process can be time-consuming

Potential Return

Unlimited

Time Commitment

- Part-time 5-30 hours per week

- Full-time 30+ hours per week

Minimum Investment

$100+

Best Resource

Reselling is a great way to make extra money.

You can resell just about anything – from websites to iPhones. 

The key to becoming a successful reseller, however, is to first learn the art of reselling before you start practicing it. 

I’ve seen folks just go out there, buy a product, try to flip it (but do it wrong), and then either they don’t sell the product at all or they sell it for a loss. 

Don’t be that person.

Here’s a basic process:

  • Setup – admin work
  • Source – find inventory
  • Sell – resell inventory
  • Shipping – ship products

Here are the 2 main ways to find items to sell:

  • Retail Arbitrage – Finding items to sell from local stores
  • Online Arbitrage – Finding items to sell from online stores

If you want to learn how to master the art of reselling, then consider taking the Trash2Cash Course 👇

Here’s what you’ll learn:

  • Where to find items to flip and resell
  • How to do proper flipping research
  • What platforms to use
  • How to avoid scams
  • How to sell items

The good news is that anyone can learn how to resell.

There are so many items out there that you can buy for a low price – or sometimes people even give them away for free – and then resell for a profit. 

For example, you can buy an old website domain (just like you would buy an old physical item) and sell it for a profit.

Typically, you can flip websites by either revamping the website, increasing traffic, making more sales through affiliate marketing, etc., and then ultimately selling the website for a profit.

Remember this: Learn first, implement later. 

Income Generating Asset: Write and Sell an eBook

17. Write and Sell an eBook


Did you know that one of the best income generating assets is your brain? 

You can earn $1,000’s extra each month if you decide to write your own eBook, for example. 

And if you don’t know how – or where – to start, then I have the perfect guide for you, below. 

Writing & Selling eBooks

Pros

- Unlimited income

- Low financial investment

Cons

- High upfront time commitment

Potential Return

Unlimited

Time Commitment

High upfront

Minimum Investment

$0

Best Resource

The COVID-19 pandemic has changed our economy and work system likely forever.

One of the most critical lessons we learned from the pandemic was that relying on 1 job just won’t cut it anymore. You can be fired or let go at any time.

Relying on 1 income source is too risky.

And that’s especially true because about 78% of American workers are living paycheck to paycheck.

I should also note that those living paycheck to paycheck isn’t necessarily those people earning “just” 5-figure salaries. 

In fact, close to 10% of Americans with salaries of $100,000 or more are also living paycheck to paycheck.

10% of Americans with salaries of $100,000 or more are also living paycheck to paycheck

No wonder that many folks are stressed in the modern world – and money worries are never fun to have.

That’s why it’s so important to start building a side hustle income, and invest in an income generating asset, like an eBook, that can earn you money for many years into the future.

Now, I’m going to show how you can generate passive income by writing and selling your own eBook.

How to make money writing eBooks:

  • Think about what you’d like to write about (passion, niche, expert skill, etc.)
  • Download the course, How to Create & Sell eBooks for a Living
  • Start writing your first draft, even if you don’t feel ready
  • Ask someone else to edit your draft, then rewrite
  • Promote your eBook on social media

When I wrote my eBook, How to Get Rich from Nothing, I probably committed over 100 hours to the making of my eBook. 

It may sound like a lot of time, but in reality, I loved every minute of it, because I’m passionate about helping people improve their financial picture, and I’m already fairly skilled in writing (since I run a personal finance blog!). 

Now, 3 months later, I am still earning a modest amount of money from my eBook, without having to do anything. 

Talk about an awesome income generating asset!

Here’s why I love writing and selling ebooks:

  • No inventory costs
  • Low upfront expenses
  • Freedom to work anywhere
  • Passive income generation for years to come

If you want to earn extra money, then you should really consider writing an eBook.

Income Generating Asset: Build a Blog

18. Build a Blog


Have you ever dreamed of traveling the world 
while earning money at the same time?

What about making money while you sleep?

If you like the sound of those ideas, then blogging could be for you.