Hey friend,
This is important.
I recently posted this on X:
Step 1: Make money
— Fiona Smith (@The_MMW) October 25, 2023
Step 2: Buy income-producing assets
Step 3: Act broke
As you can see…
This post gained a lot of attention.
The crazy part?
I received a lot of questions about step 2: Income producing assets.
For example, here’s a common question I received:
"Fiona, what are income producing assets?"
Another question that stood out was this:
"Fiona, what are the best income producing assets?"
Now, if you want to earn passive income…
And become financially free…
Then you need to build income producing assets.
And in this post, I’m going to help you do that by answering the questions above.
So if you’re ready, let’s get started!
What Are Income Producing Assets?
An income-producing asset is an asset that produces passive income.
For example, a rental property that pays you rental income.
Or a dividend stock that pays you dividends.
What are the Best Income Producing Assets?
The best income producing assets pay you recurring cash flow over time.
And they provide you with steady returns even during volatile times.
Here are the 7 best income producing assets:
1. Real Estate
What do Warren Buffett, McDonald’s, and basketball legend Shaquille O’Neal all have in common?
They all invest in real estate.
Here’s why:
- You can get tax advantages
- You earn passive monthly income from rent
- You make money while the property goes up in value
The downside?
Real estate is highly illiquid and a long-term investment.
2. Dividend Stocks
Do you know what type of stocks earn you passive income?
The answer is dividend stocks.
Dividend stocks:
- Diversify your portfolio
- Provide a stable form of income
- Are less volatile than non-dividend stocks
The more shares you own, the more dividends you earn.
But don’t fall for dividend traps, where stocks offer excessive dividends.
Recommended resources:
- Finding top stocks: Seeking Alpha
- Investing in stocks: Robinhood
3. HYSAs
If you’re wondering:
“What’s the easiest way to earn an extra $100?”
Then you might want to open a HYSA.
Aka, a high-yield savings account.
HYSAs offer:
- Liquidity
- Passive income
- Low (or no) fees
HYSAs are one of the best-kept secrets to building wealth.
Most people park their cash in a regular savings account that earns them 0.01% APY.
But with a HYSA, you can earn over 5% APY.
A 5% interest rate on $2,000 cash could earn you $100 for doing absolutely nothing.
Recommended resource:
- Best HYSA rates: Raisin (available in 30+ countries)
4. Farmland
Do you know what Bill Gates’ biggest not-so-secret, secret is?
He’s investing in farmland.
And LOTS of it.
In fact, he owns over 242,000 acres.
For 1 person, that’s a lot.
Why the focus on farmland?
- Low volatility
- Passive income from rent
- Returns can be up to 13% per year
Now, I know what you’re thinking:
“But Fiona, I’m not Bill Gates!”
Well thanks to platforms like FarmTogether, you don’t need to be a billionaire to own farmland.
But you do need to be an accredited investor.
5. A Business
A business is the ultimate income producing asset.
Here’s why:
- You are your own boss
- You can earn unlimited income
- Success (or failure) is in your own hands
But maybe you’re not ready to build up your own business yet.
So why not buy someone else’s business that’s already making money?
With Flippa, you can buy online businesses that generate $1,000s per month.
Just remember, owning a business is hard work and high risk.
6. Your X Account
Want to know how I made $12,000 in 7 days?
Well, I did it by selling my products on X (formerly known as Twitter).
But there are many other ways to make money on X:
- Subscriptions
- Sponsored posts
- Ad Revenue Sharing
And many more.
The easiest method?
Affiliate marketing.
If you already have an audience on X…
You can get paid by promoting products you already use and love.
If that sounds like something you would be interested in…
I recommend taking Twitter Affiliate Mastery.
It will show you everything you need to make money as an affiliate.
7. Your Email List
An email list can be your greatest income producing asset.
Every time you create a piece of content and press the send button…
Your readers get an email from you in their inbox.
It’s a great way to provide value to your readers while earning money for yourself.
Other benefits of owning an email list include:
- Low maintenance
- Full control (can’t be taken away from you)
- Easy way to sell your products or someone else’s
If used correctly, an email list can earn you $10,000 per month…
With less than 2 hours of work per day.
Recommended resources:
- Best email course: Write Once, Sell Twice
- Best email marketing tool: MailerLite
Things to Consider
Each asset comes with its own set of pros and cons.
So you’ll want to consider:
- The risks involved
- The potential return
- The time commitment
- The minimum investment
Take the time to evaluate your options.
The Bottom Line
Building passive income streams is hard work.
But the short-term sacrifice is worth the long-term gain.
Start today.
And be consistent with your efforts.
Your bank account will thank me later.
That’s all for now!
Your friend,
Fiona
PS: When you’re ready, here’s how I can help you…
• Check out my available programs
• Book a one-on-one money coaching call with me (limited spots available)
