5 Income Producing Assets Fresh Graduates Can Invest In. Income producing assets are investments, real estate and businesses that generate a consistent, recurring revenue. As hard as life is for young people of today, a comfortable future can still be prepared for. Check out some of the assets you can invest in below.
1. Rental Properties
Single-family homes and condominiums that are transformed into rental units can make for great income producing assets. If you purchase a property using only a small portion of your own capital (the rest is a mortgage borrowed from the bank) and rent it to a good tenant, the rental income that you receive can create substantial cash flow.
2. Creating Your Own Product
Not only is it low cost but it’s also easily scalable, meaning the sky’s the limit for your earning potential. You don’t need engineering or carpentry skills to create your own product either. In fact, you probably use products every day that you can create too.
3. Dividend Stocks
Dividend stocks are publicly-traded companies that regularly distribute their profits and earnings to investors. Most dividend stocks pay quarterly. However, there are also hundreds of publicly-traded companies that do so on a monthly basis.
4. An Emergency Fund
Having three to six months of expenses in cash is a very valuable thing to have. Things will happen. Cars need repairing. Jobs are lost. A three month emergency fund makes the inevitable rough patches–not so bad.
5. Your Health
From a risk/reward perspective, developing healthy habits is one of the smartest skills to acquire. On a daily basis, you’ll have more energy and better focus. Long-term you reduce your risk from serious illness. Saving time, money, and increasing the quality of your life.