Here Are 6 Smart Investments You Should Try Out This Week

If you want to have assets that will make money for you, you might need to read this article. Income generating investments are those that will give back a steady revenue. This does not happen by you playing the market and following the stock by selling high and buying as low as possible but simply by investing into one of these. You should also remember that a lot of these will rise in value and give you the opportunity to sell them at a higher rate.

This might sound like an incredibly difficult thing to achieve—and truthfully, it is not a walk in the park—but it is not as unreachable as you might assume. After all, many have achieved this goal and found a way to a life where their income-producing assets are earning more money than they can spend. As such, they have retired early and happily.

Now we will offer some of the examples for you to check out and consider when setting up your own portfolio.

Peer-to-peer lending

Atstock Productions/Shutterstock

This system is still very young and has some issues that need to be addressed. However, it is a steady way to start creating money for yourself without actually working. It is also a great start for those who do not have enough money to invest into larger projects.

Rent out any spare space you have on your property

Spare rooms, the attic, or even your basement can be easily remodeled and furnished to become perfect for tenants. Check if it is legal to do it where you live, what exactly would you need to do before renting your space, and set the system up. You can even go a step further and start renting the room per day instead of a month. Some people have gone as far as to rent out their entire homes and live as tenants in a more affordable part of their towns.

Pixelbliss/Shutterstock

Connect with a rental company that operates on shorter terms

Airbnb (among many others) is the perfect example that is taking a swing nowadays. And what it provides is a constant surge of customers seeing your home on their apps and websites. You will basically receive free advertising, and you can rent out the space you usually occupy by yourself if you are leaving town for whatever reason.

totojang1977/Shutterstock

Royalty trusts

These trusts are already a well known and used asset in North America. It is relatively easy to research, find out everything you need about, and invest in them. The return is steady and, usually, monthly-based. The best part is that they are sometimes given certain tax advantages. These funds mostly operate by having the rights to royalties of pipelines and other resource-based businesses.

Bonds

kan_chana/Shutterstock

Bonds are a great way to make money. It is basically just lending your money to either a business or a government, and thus, it tends to be safer than private lending. The interest is usually fixed, but you should keep in mind that payments can be stretched out. Generally, they only come twice a year. Now, we did say that they are safer, but you still need to check who you are giving your money to. If your borrower is a country that is known for not paying their debts, try to avoid it even if you are offered a better interest rate.

Limited Partnerships

These partnerships are usually created when a group of people has a great investment idea, but none of the members has the money needed to bring it to fruition. It is a good way to meet other capable individuals and create something that will generate your income for you.

A common example is buying or constructing a building. If a limited partnership does emerge to buy a real estate, a property would be owned by every member and the investor (you) gets his share. However, you do not have to be in it from its creation; you can always just buy yourself a way into one of those. However, be wary; they can be a great way to generate income, but they can also be a bad investment. If an LP is poorly managed, never invest in it.

[su_quote class=”cust-pagination”] “But like Machiavelli tells us, you must use the assets and resources at your disposal. Use them all, and use them to maximum effect.” ― Austin Scott Collins [/su_quote]

Now, there are many more ways to start your way to independent, low-effort income, but the most important thing you can do before going into any of these is research. There may be legal issues that you need to be aware of; some ideas might just be bad and, in the end, maybe you would hate the experience it entails.