“If you do not find a way to make money while you sleep, you will work until you die.” -Warren Buffet
Income investing is the method of slow, steady and usually consistent gains. These investments are what we’d label as things that acquire passive income. In essence, income investing is putting your money into something that will earn you an income apart from your regular job. Something that requires little to no labor on your part, aside from the initial investment.
An income investment can come in a variety of forms. Capital gains are a type of passive income from investments; However, income investments are generally seen as the ones that offer a predictable and steady gain in the investor’s portfolio. In other words, they’re seen as dependable in bringing in the extra cash. Investing in stocks is indeed a pursuit of passive income. Only if they are winning though. Unless there’s dividend payouts, there’s no guarantee that income will even occur, let alone continue; and there is a great deal of risk in investing into any one company or stock without due diligence.
Ol’ Reliable
We see results of income investment usually in the forms of yields on bonds, or dividends paid out from stocks. These are the most popular as they are viewed as the avenues which are most reliable. Bonds give investors opportunities to act as lenders. There are investment bonds, government bonds and corporate bonds. All have the potential to result in a timely and steady return. However, government bonds are seen as the most secured option, as taxes continue to be collected. Dividends are payouts made by corporations to shareholders. The company gives a payout per share over a set period of time. For example, they can offer 57 dollars per share to investors every year, or another can give 72 cents every month. There’s annual, monthly, semi-annual and quarterly payouts. Again, predictable, and usually reliable.
Other Options
However, the options aren’t limited to those specific types of investors. There’s also real estate, Certificates of Deposits and interest earned on savings accounts. New in the realm of blockchain technology, nodes are earning money through transaction fees, mining and staking, costing participants money only in initial investment and in the power and money necessary to keep the nodes active and running properly. Crypto enthusiasts are getting crazy amounts of returns when they stake their coins on their networks or join in on liquidity pools for yield farming. There’s plenty of options out there for any type of investor. Some options offer more risk than others, but as new technology and options arise and advance, some are gaining traction.
Some investors would encourage portfolio diversification. Diversifying can act as a safety net for loss, as your assets are spread abroad and not all suffer loss as much or as often as others. Things like ETFs and mutual funds give investors spread out investment opportunities. The new wave of blockchain tech is bringing an abundance of opportunity for income investments. Bonds and dividends and savings are always reliable. In any case, diversification offers a wide range of gain as well as security.
Gain!
Income investing in a nutshell is putting your money where it can gain without effort in a reliable manner. There are a variety of reasons one would choose this strategy, and it can work for any investor. The options are there, and they seem to continue to expand in the age of information and interconnection. Always compound, always gain. Reinvest your gains, and always gain! HODL if you have to, but be wise in your investments. Thanks for the read!
