When we talk about income-producing assets, it’s usually centred around common investments like shares or investment properties. In this post, we uncover a few of the more uncanny income-producing assets that you might already have access to.
Finding adequate cash flow to afford your expenses is key. You might also want cash on hand for emergencies, like unexpected surgery, and the odd luxury. Receiving passive income is a dream scenario for so many. So how do you find these income-producing assets and put them to work?
The best way to do this is to make a list of all your assets and explore ways to make money from them
Many people are asset-rich and cash poor, and I’m not just talking about your parents or retirees, but young people too. We all have assets. Cars, owned and rented homes, clothes, household items and even our skills are just a few common examples.
Today, I want to show you how to generate income from your assets i.e. turn them into a one-off or ongoing flow of cash into your bank account. After all, your ability to have cash on hand to cover expenses and save for the fun times is one of the keys to living a fulfilled and happy life.
Here are 7 common income-producing assets you could start with:
1. The house or apartment you live in – Airbnb
We’ve talked about Airbnb before and for good reason, it’s a big deal.
Airbnb gives you the opportunity to rent your entire place when you go away or a spare room or couch for extra money. Plus, depending on where you live and what type of place you have this liquidation opportunity could be incredibly valuable.
We’ve funded entire overseas trips with this!
2. Your car as an income-producing asset – ride-sharing services
Usually, cars are a terrible investment as they lose value over time. However not if you can turn it into an income-producing asset when you’re not driving.
Do you use your car every day? Websites like Car Next Door and GoGet are great ways to rent someone else’s car or rent out your own for extra cash. These sites work so well that you might even consider whether you need a car at all. Could you sell your car? I have lots of friends and clients who’ve sold their cars because of these types of car-sharing services.
Another way to make money from your car is to become an Uber driver. There are no minimum hours and as long as your car is new and clean enough you and your car make your savings grow.
A lot of people are making money from this, and for good reason.
You can use them when you want and choose who to pick up or not. It’s your call, but a great way to make extra money.
3. Your second car – do you really need it?
We’ve got two cars at home and we’ve tried and looked at our options for potentially getting rid of one. But with a young family now and both of us needing cars for work we’ve decided at this point it’s not worth getting rid of either one or both. This may change in the future, and we’ll certainly keep an eye on it.
However, your situation could very well be different to ours. If you have two or more cars at home I would seriously encourage you to think this. Could you make some extra cash by leveraging one of the above ride-sharing services? Or could you sell a car and turn the money you make into something that’s actually going to grow for you?
4. Your wardrobe – sell, donate or swap unwanted items
This opportunity has huge potential. You can sell used clothes on a number of sites. eBay is an obvious option but there are lots of others that specialise in different types and conditions of clothes.
There are sites designed specifically for designer clothes, vintage, and even kids clothes. It really depends on what your wardrobe looks like, but this is a great way to declutter, make room for new clothes, make some extra cash or simply create a bit more space to achieve more in your life.
5. Pre-loved household items – clear them out
Liquidating these assets offers two main benefits: decluttering and cashing in.
If I look around the room I’m sitting in right now I can spot picture frames, books, hats and an assortment of tech accessories that I could sell right away. Now, whilst these items might not be worth a lot by themselves, you could probably make quite a lot of money from all of them put together.
Spend an hour or two going through your home, listing unwanted items with a couple of photos and snappy descriptions and you’ll be surprised at how much you can sell. Turn them all into income-producing assets!
Jump on Facebook Marketplace, eBay, Gumtree in Australia or Craig’s List in the US and Canada to see just how many household items that people no longer need or have room for are selling for good prices. There’s nothing stopping you from taking advantage of these easy-to-use cash cows. You could also consider holding a good old-fashioned garage sale.
6. Your skills, time and creativity are also income-producing assets
Are you creative? Do you love cooking, making cards, signs, jewellery or even helpful Excel templates? If you’re good at what you do, chances are, someone will want to pay you for your products.
Can you cook? If so you could make homemade meals for companies like Food St. and earn extra money in the process. If you prefer craft you have heaps of options. Show them off on Instagram like our friend who creates amazing baby-themed decorations and sells them via @luxebabylove. Community sites like Etsy offer a great platform for selling homemade products without having to build your own website.
Earning income from this type of asset may seem like more of an involved side hustle, but it’s still a fantastic way to create extra cash.
If you’re handy you could even jump on a site like Airtasker and offer to do things like clean, cook, or fix things around someone’s house for cash.
7. Your car park
If you have an unused car park, can you rent it out? We live in a building where car spaces are often rented to other people in the building or shared by a few apartments. There are also a number of sites where you can list your car space for people to rent.
So there you have it: seven income-producing assets that you can use to maximise your financial position.
If you have other ideas we’d love to hear them in the comments. Good luck and thanks for reading!
Do you feel like you’ve maximised your earning capacity and need help minimising expenses instead? If so check out our wildly popular Money Day post for practical tips you can act on immediately.