Hey everyone! This post is going to discuss money - where I invest my money and why I choose those specific investments.
I follow a general investing philosophy practiced by many esteemed and wealthy investors such as Warren Buffet. The fundamental idea of this philosophy is to invest in assets that produce income streams over long periods of time.
Why Income Streams Rather than Asset Appreciation?
Many investors in the stock market, real estate market and crypto markets tend to look for assets that will appreciate in value over time. Meaning, they buy Stock X or Home X or Crypto X in hopes that they can sell it for more than they bought it for at a later date - it's your typical Buy Low, Sell High philosophy.
While I also subscribe to buying low and selling high, I take a much different approach with my investments. I prefer to invest in assets that will not only appreciate in value over time, but that also pay me an income while I'm holding them and waiting for the appreciation.
Warren Buffet gives a great analogy of income-producing assets by comparing farmland to gold. He begs the question, "What can you do with gold?" Versus "What can you do with farmland?"
The Answer:
- Gold is pretty to look at, but it doesn't offer any other type of value. It may increase in value over time, but it doesn't produce an income while you hold it.
- Farmland may or may not be pretty to look at, but it offers a reliable source of income and it can also appreciate in value over time.
I also apply this to a lot of various crypto investments. The majority of the money I invest in cryptocurrency goes towards cryptos that have some stream of income associated with them. Here's 3 of those coins that I invest most heavily into:
- STEEM
- ARK
- NEO
Of these 3, STEEM is by far my largest holding. STEEM can offer an incredible source of income to someone who's willing to post and engage in the community. ARK and NEO are both passive income streams - you earn your income based on how much ARK and NEO you stake in the network.
I also love STEEM because it has 2 major variables that determine how much income you make:
- How hard you work within the platform
- How much STEEM you stake in the platform
So, that covers my crypto passive income, but I figured I would take it a step further and show you all of the investments I make that provide me with passive income:
- Crypto (ARK, NEO, STEEM)
- Real Estate (rental income from a few properties)
- Dividend Growth Investing (investing in a selection of dividend paying stocks on the stock market)
- Loans (earning interest from loaning money to various loanees)
My next post will take a deeper look at the numbers behind these income streams and will talk more about how you can go about setting these up for yourself!
Here's the Question of The Day, don't forget to post your answers in the comments!
QOTD: What do you think about earning income versus just waiting and hoping for asset appreciation? Do you side with Warren Buffet or with the "buy low, sell high regardless of income" camp?
Thanks for reading! Don't forget to leave your thoughts below and I look forward to seeing you in the comments!
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