5 Tried and Tested Income Generating Strategies for Building Wealth

Disclosure:This article is part of Advanced Mining “Money Bit” where we educate our clients on matters Financial Literacy.

Everybody wants to be a millionaire.

However, few people are willing to go through the journey. It comes as no surprise that famous lotteries like Powerball in the USA and El Gordo in Spain attract millions of participants. On the other hand, actual wealth-building strategies have lesser appeal.

See, the journey is as important as the destination. The reality is that the overwhelming majority of people who try the “get-rich-quick” games don’t end up winning. You have better odds with historically tried and tested techniques.

And might that be?

Simple as it sounds, getting your nose down and building your way up is the way to go. Yes, putting in some money, and eventually getting that money to work for you is what makes entrepreneurship worthwhile.

Relying on your middle-class annual income, for example, to earn your way to wealth can be a frustrating exercise. Unless you have ways of keeping your expenditure low and dependents minimal, you are going to always have financial anxiety working an ordinary job.

There are a number of strategies you can deploy to make money while you sleep. As with any sector, there are inherent risks as well as opportunities in the fields you choose. 

Let’s highlight some of them:

1. Purchasing Stocks

Stocks are a popular form of building wealth in America and much of the developed world. Dividend-yielding stocks can work for those with long term considerations. Your exposure to stocks can either be direct or indirect through a 401(k) account or a mutual fund. The latter, especially, require minimal work and can be a great means of making do the work for you if done right. If you have a significant amount of capital, placing some of it in a high yielding stock can generate impressive income over time.

Pros

• In a rising market, it can grow with the economy.
• Easy to buy and sell.
• You can stay ahead of inflation.

Cons

• There is a risk of losing it all in a financial meltdown.
• There is the daily emotional rollercoaster monitoring stocks.
• Needs extensive research if you are making direct investments.

2. Affiliate marketing

Affiliate marketing is a relatively new channel for making steady income. Essentially, a person makes money by promoting other companies, brands, or “affiliates.” To have an affiliate marketing operation, you first need to have a running website, podcast, blog, YouTube, or other similar platforms.  The affiliate pays you for leads, traffic, or sales generated for their product.

Pros

• A great way to generate regular income for website owners.
• The affiliate marketer does not need to worry about logistics like customer support since they are all directed to the merchant.
• The affiliate marketer can still have plenty of time for their main enterprise.

Cons

• You need to have an actual platform like a website to get started.
• There is intense competition for high paying brands meaning that new or smaller platforms will get lesser commissions.
• It requires some level of involvement regularly to actually market.

3. Renting Your Property/Real Estate

Well, for those with property, real estate is another way of making money. The rise of Airbnb services in the last decade means that you could always rent out a room or a house, especially if you live in a prime location. You can even rent out your own house if you will be out of town for a while on Airbnb. One sets the daily rates and reasonable ground rules. To manage risk, Airbnb has an insurance policy in case the tenant causes damage.

Alternatively, one can invest in crowdfunded real estate. Essentially, this means that you pool money; say a few thousand dollars with a real estate company. The company then constructs property using the pooled funds and sells the houses. The company then distributes the profits among the members of the crowdfund after subtracting the costs. Crowdfunded real estate can generate decent income if you partner with a professional real estate company.

Pros

• In an appreciating market, real estate can generate tremendous returns.
• The rise of Airbnb provides great flexibility to property owners as to the times of the year they can rent out their property.
• Renting a property can mean consistent income.

Cons

• The financial crisis of 2008 is an everlasting reminder of the risks of investing in real estate, especially in an inflated market.
• Crowdfunded real estate is not a guarantee that the investment will work out.
• Investing in real estate requires significant initial investment if you are to generate high returns.

4. Creating Digital Products

The internet is a great marketplace for the skilled. There is a market for digital products like e-books, ads, online instruction guides, and basically anything else you can market and sell online.

Anything digital that can solve a problem or create a service is a potential asset. There will always be a disparity in skills among people on the internet. 

Even the seemingly mundane act of converting a document to a pdf is not universally familiar with netizens. You can create digital products on a freelance basis to supplement your income.

Pros

• Digital products can be created and reproduced to earn you money.
• You can get business from friends and local organizations.
• The market is diverse and you can specialize in specific services.

Cons

• Difficult to generate consistent income because of the fluctuations in demand.
• High paying jobs skewer towards more skilled persons, hence low entry-level pay.

5. Mining Bitcoin

Mining Bitcoin could be new but it’s feasible. Bitcoin has been around for just over a decade now and many people still don’t know how new Bitcoins are generated. Bitcoin is a self-regulating decentralized network. To work smoothly, there has to be a way of verifying Bitcoin transactions. This role is played by banks in the centralized financial system.

Miners help verify transactions. For their efforts, they are rewarded with Bitcoins and transaction costs. Mining Bitcoin is digital and utilizes powerful computers to attempt complex mathematical problems for a right to add the next block of bitcoin transactions to the blockchain. 

Should a miner be successful in mining the next block, they are rewarded with 6.25 BTC. Each of those Bitcoins being worth close to $10,000 at press time translates to over $60,000 worth of BTC. Needless to say, Bitcoin mining is a very competitive affair.

Pros

• Bitcoin mining involves computers exclusively meaning that you literally make money as you sleep.
• Mining is a continuous affair meaning that the income is consistent.
• Bitcoin can tremendously appreciate as an asset, meaning that the Bitcoin you mine can generate great returns.

Cons 

• Bitcoin mining is a sophisticated affair that needs sophisticated equipment (ASIC Rigs).
• Mining generates a great deal of heat and needs natural cooling or high expenditure on powered cooling.
• Mining consumes high electricity and can be unprofitable if you don’t have cheap power.

Mine with Advanced Mining: Eliminate the cons of Bitcoin mining 

Luckily, there are ways to eliminate the problems with Bitcoin mining and make it a one-sided affair. First is the threshold of getting advanced equipment. The logistics of power and cooling are other challenges.

Enter Advanced Mining.

Advanced Mining is a professional equipment reseller that also provides mining equipment hosting services at data centers with cheap renewable power and natural cooling. Advanced Mining has a direct line to the leading ASIC rig manufacturer, Bitmain, and has a competent team to make mining Bitcoin viable for you.

today and build up your wealth!