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!
-
Amazing post you just dropped now, I can tell you just change my view on investment, from the gold and land analogy I can say, the investment with returns as it appreciates is better. This is a new approach I want to adopt, I will also make a post about this.
Thanks for this @khaleelkazi
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great advice @khaleelkazi ...I don't have much to invest and stake myself but I'm very dedicated to the Steem blockchain and it's community and focus 100% on it! That's the beauty of it, one can choose after ones owns circumstances and it can still be greatly profitable...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks @reko! I'm totally get where you're coming from, and I 1000% believe that you're doing an amazing job of giving back and investing your skills and genius to the Steem blockchain through many of your projects like steemfollower! Thank you for all you do! You're truly making the community better and we'll all make it to this moon together 🚀
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
We all really just work here on Steem to make money...I caught my self yesterday getting gas and the wife asked how much it was, and I said it was 10 Steem. Awesome, not even thinking. Wouldnt it be great if it all worked that way.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I totally agree! Steem is a great community and the reason it works so well is because we are all working towards the mission of adding value to ourselves which in turn adds value to the entire platform. By being selfish, you can actually be incredibly selfless towards the whole community! Soon we will all be thinking in terms of Steem!! 🤩
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
soon, my friend!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I like NEO so I know what you are saying. That is so much gas I wish I could produce the same. Hopefully soon I can get to a ton of gas a day. No pun intended ;P
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Haha I love NEO, it's a great source of income as well as appreciation (I bought in at $20 🚀)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
O will apply this methods
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I'm glad you liked the post! Thanks for reading!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
A timely post for me! I side with Warren Buffet. I think Steem is one of the best passive incomes.
I am also looking into coins like SmartCash that have the staking capabilities. SmartCash is down right now so a good opportunity to get the 1k coins to stake and get 7 percent a month return!
Great post.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes, STEEM's ability to produce passive income is off the charts, I love it!
I have also looked into SmartCash a bit, I'm trying to get a better handle on how it all works and I'm also looking into the masternodes. It's exciting stuff!
Thank you @sequentialvibe!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
QOTD my answer: do everything. Finding the exact right trade will not happen unless I have one foot in it. I like to believe I am a good trader but in reality I am below average. If I truly have to pick between earning income versus buy low and sell high I would go with the former. Reason being I can not time things well but when I need capital I will not be strap if my investments are already paying me back. Sometimes the buy low and sell high occurrence takes years.
I too am hooked to passive income investments. I do not have any ARK but after reading your post I believe I must start saving some crypto to invest in ARK. I am aware of LISK, ARK, and RISE all delegate proof of stake and all have been rising in evaluation. I am still undecided between the 3 which to invest in but sounds like ARK is the way to go. Thanks.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hey @mawit07! I agree, diversification and doing everything is a great way to diversify your risk exposure and get the most reliable profits. Income investing is one of the best ways to ensure that you don't tie up all your capital and have nothing to show for it for years on end (a situation that many people find themselves in).
Ark is very interesting! I would recommend doing your research before buying/staking! I am not a financial advisor. I do love Ark and think that it is really going to have a large impact in the crypto space and beyond! It really is a gamechanger and if the team executes, will surely go big! 🚀
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I like the earning income strategy, that means you get consistent funds to pay for the things you need in life. Hoping to transform my basement for air bnb or a renter and to rent the house if I ever move out. I also like steem and NEO because they build on themselves.
Sometimes asset appreciation will win out though, especially in the crypto world, some of these coins have and will continue to 100x or more, they are riskier though.
I'm personally looking to find more sources of income myself, any ideas, I've got a smidge of time and a smidge of money haha!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Exactly, I think its always best to invest in income sources and never touch the principle, but live off of the income it produces!
A relative of mine does Airbnb rentals, she says that it makes pretty good money! That can be a great source of income for you!
I agree asset appreciation can be a great way to make money and I definitely invest in some assets with the hope that they appreciate in value. I just make sure that I invest the majority of my money into assets that will also produce an income over time. I have bought many cryptos that don't actually pay income, but they represent a smaller portion of all my investments.
haha I know the feeling! I'm always looking for new ones! The 4 I listed in the post are the main ones I'm using right now. There are others that vary depending on risk tolerance, income, capital, etc.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
steem is the best to earn with no Risk
now adays there is a full risk in online market we cannot say anything on crypto so have to b safe working on steem take care!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Steem is very low risk in my opinion, not "no risk" but very little especially in comparison to the rest of the crypto market! Thanks for sharing your thoughts @khaleelahmed! You have a great name by the way 😉
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This reasoning is why i am so bullish on exchange coins that give out dividends (COSS/ Kucoin shares). The coins themselves increase over time and they also spit out coins that will inevitably increase in value. Only negative i see is if something happens to the exchanges themselves. Fingers crossed.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes, exchange coins are very interesting to me. I’ve experienced some really good times and some really bad times in terms of exchanges and I think that they are a great addition to a diversified crypto portfolio! As you say, fingers crossed!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The smartest and richest people often spend their money on investments. While the poor and noodle class spend their money on material possessions. Love the mindset!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
there is no obstacle ahead of you in order to get rich and get rich. you have a very beautiful idea and I am very happy to share it with us, I guess I can trust you.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for reading and for your kind words! I appreciate it!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
just curious, why ark and neo?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Both are rather low ROI
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I'm not sure what you mean low ROI? They both have appreciated more than 4x in the past 6 months and also pay a passive income (~8-12%) to all those who hold/stake the tokens, that's a pretty solid ROI in my opinion.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Right I'm only talking about the staking rewards - the price increase is a whole separate ball game. There are many coins with much higher % staking rewards. If your answer is that you fundamentally believe in those projects, and that they will continue to appreciate in value, that's a good answer.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hi @khaleelkazi bhot are good If you want to be a successful investor then you have to know both term first one is increase your assets column that will give you return of your investment and increase their value with time is too good but also do this things buy at low and sell when high this is smart work i think soo and I'm doing this inshallah in coming months 😊
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
no tactics bam bam bam
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Tactics are king!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for your information. I will try to apply this methods :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Please check my thoughts on a crypto currency ecomomy.
@weddingdresses
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I’ll check it out!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great article! Yesterday i absorbed so much information, i just had to re-read some articles today. I totally agree on the value of a steady income stream. This is what attracted me to Steemit and is what will make it a huge succes! You got my follow.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
To me I consider real estate and housing as a fantastic source of income, because there are numerous possibilities to earn well, it's very lucrative too.
And about the project, you can also tell us about the cost of the materials purchased it can help for people to map out their plans too
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It is amazing your publication, investment is really a double-edged sword, the thing is to know how and in what to invest to make a profit. Very good post I liked a lot
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
EOS holders get Airdroped tokens. 😉
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hmm I'll have to check out EOS, thanks for the recommendation!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
And?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
And who was it that gave you THIS AMAZING idea to blog about your investments ahahahah
If you like cryptos that give dividends you should look into Ven (they are going to give Thor) and XLM ( you can be part of a pool and get x xlm per month)
Waiting to hear more about your dividend stocks :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I am firmly in the belief that income (cashflow) is the best way to go. Although I like and hold some crypto currencies that have no income stream and am waiting for capital appreciation as well as potstocks because this is a totally new frontier opportunity which doesn't come around many times in a lifetime cashflowing into your wallet/bank/pocket is the best way to thrive.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
You've convinced me to stake some NEO!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Glad to hear it! NEO is a great project, just make sure to do your research first (I'm not a financial advisor!!) Thanks for reading!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
If you are looking for a disclaimer, feel free to borrow from mine. I like to link to mine in each post. No promises that it is actually enforceable, though!
https://steemit.com/disclaimer/@samuel-swinton/financial-and-investment-disclaimer
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great post! I don't know much about ARK, will look into it.
I feel that playing the appreciation game is speculating and subject to my emotions. But if I am getting paid no matter what, I does give a better sense of security.
I hope you are using stock options to collect even more income your stocks or ETFs you already have. A covered call strategy is safe and can give you plenty of returns to buy shares or income to spend.
The real state is the best because is safe and you can use leverage.
Looking forward to your next post.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
"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."
I wanted to underline this sentence. I'm agree %100. Thank you for sending your experiences.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you for reading!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I really respect Warren Buffet and what he is doing with his wealth. He is right in principle. In reality gold may be good for teeth fillings or it can be eaten given not much of a profit but it is sure to appreciate. I'm not so sure about farm land. It really depends on climate and the market for what is produced. But the basic principle is right. It would be better to have an investment I can enjoy today rather than investing on something that is just stored away for tomorrow.
You can say that I am investing in my children and in my health. These are investments that pay off today as well as in the future. The investment for a child begins in infancy. That time invested is worth a thousand times compared to 20 years later. The same is with the child's development and education. Time invested to work with a learning disorder like dyslexia at the age of 6 is worth 10,000 the investment at age 20. My money goes there to therapy for the youngest son. The pay of in the short term is that he can attend school with regular kids. The pay off in the long run is one day he will be able to blog here and may be a better writer than me.
As far as investments that create a passive income. I think this is wise. One of my friends took out a lot of stock from a blue chip company in the 90s. The stock went close to $200 and gave dividends up to 2009. But now it is selling for around $15-20. He just waited around thinking the stock would pay for his retirement. He was too busy to do anything else. Now I am in the same situation.
Since 2009 I have been passively looking for a passive income. I started searching websites looking for information about earning a passive income and came to the conclusion that most of it was a scam. I tried some projects with publishing with Amazon and using code to make a cell phone game but nothing worked out.
Actually there are no real "passive" incomes. Steemit is not a passive income. If users are not with it they will lose support and if you don't use SP it is not making any income either. But this is the closest I have ever seen to a passive income. I have not seen such results anywhere so fruitful as Steem. This is the only place I started out with nothing then just by searching other's blogs I made some friends and posted about it and made a profit almost equivalent to the time I put into it.
Crypto is not a passive income but a kind of a stress and health hazard. It draws my attention away from more important things. I want to find the best time to buy or trade and have a headache in the end.
Of course I would like my money to work for me. You are really privileged to start investing at an early age to to enjoy it.
I wish you the best in your endeavors.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@minepoly if you want a really passive income in crypto take a look at smartcash. All you have to do is hold and earn smartrewards.
https://steemit.com/smartcash/@nitego/58vdau-introduce-your-teens-to-smartcash
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I heard of that before. I didn't look into yet. Thanks. Why does it sound like a scam?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hello @khaleelkazi
I see your great sense of investment, I think this is one of the best post I have read on steemit so far, I will shift my investment strategy into investing in things that pays while they appreciate. You just gave me a new and better approach to investment.
I will also want so clarification here;
How do ARK and NEO pay investors, I will consider investing here too.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
yes this 3 are good coins , but really i suggest you to take a look at tron , stratis and qtum
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
hmm I'll take a look! Thanks for the suggestion!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I love your investment strategies, I will adopt some and add to the once I already use. Investing in things that gives high returns will appreciating is great. But some investment don't appreciate as planned so the returns compensate for that.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
You are right, investment should be done base on returns while appreciating. I love your approach on investment, you are a real investor that many should emulate.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks @kehindeumoru! I appreciate your kind words! Investing for income is the best way to grow real wealth, in my opinion.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think generally we all love the idea of doing nothing and earning a steady stream of passive income.
But I think it is in our intrinsic nature as human beings to be on the move. To work. To do stuff and to enjoy being rewarded the fruits of our labor.
To me I try to find bliss in both of it. Whether it be waiting for an asset to appreciate or to grind and do stuff that involves working, I think we need both in our lives.
So STEEMit and investing in other assets like property, you know I'm a fan of the way and where you invest your time and money.
Bless ya man and have a great rest of the week ahead!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for this post @khaleelkazi. Now I see the reason to invest no matter how little it may be for a start. I appreciate this post. Thanks for sharing
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes! Start now, no matter how little. Cultivate the habit of investing as early as possible and you will win over time!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Useful information. I did not know that NEO and ARK had a passive income stream. I will check them out. Since you are like me and like passive income. You may want to take a look at smartcash. I like it for that and more. Smartcash has what we call a smartreward. This works like an interest on your savings account. To earn smartrewards all you need is 1000 smarts. This has to be held on an address by the 25th of the month (snapshot is taken for next payment) and still be untouched by the next snapshot to qualify for a share of the smart rewards. The smartrewards comes from the block rewards. I particularly love this as it is NOT staking. The address with the smarts can even be a paper wallet.
One of my previous articles speaks about it:
https://steemit.com/smartcash/@nitego/58vdau-introduce-your-teens-to-smartcash
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit