Common motivations for buying assets include the potential for financial gain and stability. Allowing your money to make money for you is one of the smartest moves you can make. 
Ready to dive into passive income? Here’s the list of the 7 best income-producing assets that you can invest in to start earning passive income.

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These are conservative, low-risk income-producing assets. The trade-off to its low volatility is that you won’t earn as much as more aggressive assets. It’s still a good idea to have a few of these in your portfolio to ensure proper diversification
A certificate of deposit, or CD, is a low-risk financial investment offered by banks.

How they work is simple: You loan the bank money for a set amount of time, known as a term length, and you gain interest on the principal during this time.

A typical term length is anywhere from three months to five years. During this time, you won’t be able to withdraw your money without taking a penalty hit. But it’s pretty much assured that your money is growing at a fixed rate.

The interest rate varies on how long you are willing to invest for. The longer you loan money to the bank, the more interest you can earn.

And since CDs are insured by the FDIC up to $250,000, they’re very low risk.

But there are a few drawbacks:

Buying this asset is a good idea if you want a low-risk investment that ensures you peace of mind. You might also want to know which is better for you, CD vs Roth IRA.
Much like CDs, bonds are like IOUs. Except instead of giving it to a bank, you’re lending money to the government or corporation.
And they work similarly to CDs, which means they’re:
If you want to know exactly how much you’re getting back, bonds are a great investment.
For more, check out my article about understanding stocks and bonds.
The U.S. Congress established real estate investment trusts, or REITs, in 1960 to give people the opportunity to invest in income-producing real estate.
REITs are like the mutual funds of real estate. They’re a collection of properties operated by a company (aka a trust) that uses money from investors to buy and develop real estate.
They’re a fantastic choice if you want to get involved with real estate investing but don’t want to make the commitment of purchasing or financing a property. Like with most blue-chip stocks (more on those later), REITs pay out in dividends.
REITs also focus on a variety of different industries, both domestic and international. You can invest in REITs that build apartments, business buildings, or even healthcare facilities.
(NOTE: There are some taxable implications for REITs.)
In all, they are a straightforward way to get involved with real estate without having to eat the upfront cost of buying property. To get started, go to your online broker and purchase a REIT like you would a typical investment.
One to consider is the Vanguard REIT ETF (VNQ). This is Vanguard’s ETF fund that tracks a REIT index from MSCI Inc., a noted investment research group.
If you don’t know how to do that, that’s okay! Check out my article on mutual funds to find out exactly how you can open one.
You can also learn more about how to invest in real estate with my in-depth guide.
The following assets are riskier investments that might require more active management on your part. The earning potential for these investments is high. If you put the time and effort into these assets, you might find yourself with a nice sum of money to show for it.

…but you don’t have to take the same path as everyone else. How would it look if you designed a Rich Life on your own terms? Take our quiz and find out:
Some companies pay out earnings to their shareholders each quarter via dividends. These are known as “blue-chip stocks” and tend to be reliable and able to weather most economic downturns.
Many investors like to add a few dividend-paying securities via blue-chip stocks in their portfolio to ensure that they receive earnings consistently throughout the year.
And while some like to hand-pick individual shares to invest in, you can get started by investing in index funds that specialize in high-yielding dividends.
A few considerations are:
Renting out property seems simple enough:
That DOES sound awesome, but it’s also an oversimplification. In fact, renting out property is anything but relaxing. That’s because you’re responsible for all facets of the building you’re renting to tenants. That includes repairs, maintenance, and chasing down tenants who don’t pay you rent.
And if they do miss a rent payment, you’ll have to find another way to pay your monthly mortgage payment.
You CAN make money from renting out properties (many people do!). It’s just that doing so could negatively affect your finances in a BIG way. Check out my house poor article for a good example of that.
Luckily, with the rise of services like Airbnb, you could rent out a spare room in your house and not worry about buying a separate apartment unit. 
You simply sign up for the platform and take advantage of short-term rentals. You’ll still have to deal with certain pains of property management, but you’ll be able to leverage property you already own (e.g., a spare bedroom in your house).
For many people, owning multiple properties can put a strain on your finances- and your relationship. In episode 88 of my podcast, I talked to a couple facing big problems thanks to their real estate portfolio.

Also known as “crowdlending,” peer-to-peer (P2P) lending allows investors to essentially act like a bank. You loan money to others via a peer-to-peer lending platform (such as Lending Club), and later they pay you the money back with interest.

Unlike a bank, the person seeking the loan doesn’t have to deal with financial background checks or incredibly high interest rates due to things like bad credit history.

P2P lending isn’t without risks though. In fact, relying on someone with poor credit to pay back a loan might be one of the riskiest financial investments you could make. But if you’re willing to devote yourself more to learning about the platform and use money you don’t mind losing, it could be a fruitful financial investment.

This is one of my favorite ways to make money. It’s also a way that you can build an asset instead of buying one. Not only is it low cost but it’s also easily scalable, meaning the sky’s the limit for your earning potential.
And 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, like:
These digital information products are perfect ways to earn money without sacrificing overhead.
But they come at a cost: Your time and energy. Not only do you actually have to create the product, but you also have to make sure that the product will sell.
That’s why we’ve devoted IWT to helping entrepreneurs create, grow, and scale their businesses. Check out the site today for more information on how you can get started with information products too. 
If you’re ready to start buying assets as a beginner, here are some things you can buy with a smaller budget.
Here are 7 assets that can help you build wealth.
You can read the first chapter for free – just tell me where to send it:
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