Being an entrepreneur and being a millionaire are two different things (in my mind). Being an entrepreneur means changing your mindset and learning to do things your way and constantly working to improve yourself. However, if you are going to be a multi-millionaire you need to upgrade your thinking. Part of that thinking means understanding that the average millionaire has at least SEVEN streams of income. This means getting your money to work for you and earn you more money.
Below I outline some of my favorite methods for earning additional income! Please keep in mind that these are slow growing assets but if used correctly they stand to make you millions! Let’s Begin!
Crowd Funded Real Estate
Crowd-Funded Real Estate is a recently developed platform and concept that allows accredited and non-accredited investors to invest in real estate projects. It’s the go-fund me of the real estate world.
Multiple people pool their money to invest in various portfolios of property both residential and commercial while making money from rent and property appreciation based upon their percentage of financial contribution. Not only are you able to access multiple projects that have a high potential for return, but the company that owns the platform does also all the leg work (research, analysis, wheeling & dealing) all you have to do is invest your money and manage it correctly. As always be sure to do your research to find the platform that suits you best personally I use FUNDRISE! However there are multiple other platforms out there for you to look into, simply go to google and type in crowdfunded real estate platforms.
PEER TO PEER LENDING
Yet another one of my favorites is what has come to be known as peer to peer lending. This is another up and coming investment class that has really begun to take off over the past few years and has a very bright future. In its simplest form peer to peer lending is the lending of money to people or organizations over a negotiated term length while they pay back your principal plus interest every month. Now before you stop reading, I understand how crazy this sounds, believe me, I do. Loaning money to complete strangers over the internet but, there are some very reputable companies out there. I personally use the industry leader Lending Club. Their vetting process is very thorough and the amount of information they provide you regarding the borrowers is quite outstanding. As always please do your research prior to signing up, figure out what works best with your financial plans and understand that all business investments come with their inherent risks so you need to go into this with the willingness to potentially lose money. However, with proper diversification, money management, and research, this can be kept to a minimum.
I personally love dividend stocks, they are very prevalent, and have tons of research, theory, and evidence behind them. Dividend stocks are a great way to make passive income and if re-invested can make you a pretty penny. The concept of a dividend stock is simple. You purchase what is called common or preferred stock in a company that particular company commits to pay each stockholder a percentage of its overall profit based upon the number of shares they own. For example, if company A is trading at $10.00 per share and they offer a dividend yield of 10%, then every quarter (or whenever they pay their dividend, called dividend ex-date) then you would earn $1.00 per share that you own in that company. The idea here is to re-invest that money over time to earn you higher and higher dividend payments. This is a great option for those who prefer not to day trade and would prefer to park your cash and let it grow!
HIGH YIELD CHECKING AND SAVINGS ACCOUNTS
Out of every option discussed in this article, this is by far the easiest one. This description is going to be short because this is very self-explanatory. All banks offer checking and savings accounts, most of which offer some sort of monthly interest rate. Quite frankly many of these accounts offer absolutely abysmal rates some as low as .10%. However, if you do a quick google search you can find accounts ranging from 2% all the way to 5%. We can thank the power of the internet for this! As banks become more digital they are able to save cost by not needing to open future branches in turn, giving them the capability to provide higher interest rates. SOOOOOO go get a better checking account and let your money make money for you. Remember as entrepreneurs we need to learn to replace the word HUSTLE with LEVERAGE. We must learn to work smarter not harder and this means leveraging assets that are available to use.
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