For most people, the day job is not enough to meet all their financial needs. Their financial goals seem out of reach because they never have a single cent to spare after paying bills.
To build long-term wealth, you need passive streams of income. Here are assets that are great sources of passive income.
Interest Savings Accounts
Interest savings accounts are not attractive because the interest is very low. But instead of having a high-fee bank keep your cash, you can opt for online banks. They are free and your money earns interest.
Certificates of Deposits (CDs)
As already mentioned, the interest offered by savings accounts is not that great. CDs have a higher interest rate and they are low-risk investments.
You can keep reinvesting your dividends. When you retire, the dividend income may be enough to cover your bills.
Bonds are less volatile compared to stocks although they have a lower growth potential over the long term.
Small Business Bonds
If you are looking for something short-term, small business bonds may be right for you. However, they don’t come without risk.
College Savings Account
College is not cheap. That is why you may want to consider CollegeBacker. They have a 529 college savings plan and the contribution grows tax-free.
Health Savings Account
A huge, unexpected medical bill can put you down financially. With a health savings account, you can make a tax-advantaged investment.
Crowdfunded Real Estate
Real estate investments can seem unattainable for ordinary people. But you don’t need a lot of money with crowdfunded real estate.
This is for people who want a consistent source of income. You will need lot of capital but you will earn higher returns.
If you have a second property or spare room, rent it out to travelers and tourists. List it on Airbnb to get guests.
This one doesn’t sound interesting but it can help you build wealth. Lend cash to farmers or purchase active farm shares.
Buy wooded land and make money by selling trees. Make sure you get a tree surveyor to inspect the land first.
Sometimes, there’s something more valuable underground. So speculative land investors buy mineral rights and earn investment income.
Gold is a very stable investment. Palladium, platinum and silver are popular investments too but they are more volatile.
You buy shares of high-value paintings in a secure vault. After several years they will be sold for profit if the value has increased.
If you have $1000 or more for investing, own fine wine. The taste can improve over time, increasing value and there is also the scarcity factor when the remaining bottle are few.
Lending money to people is risky but the interest is higher.
Tax Lien Investing
Tax liens are a unique way of lending and collecting interest. Before venturing into this investment, check your local laws.
You receive royalty income when you own rights to trademarks, movies, music or any other intellectual property.
Start a Business
Monetize your hobby by investing in yourself. It is not easy but at least you won’t have to share the profits with other shareholders.
If starting your own business is too much, invest in someone else’s vision. You can do this on platforms such as NextSeed.