My List of Assets that Pay Monthly Income

2. Dividend Stocks and Shares

Dividend stocks are one of my favorites when it come to assets that pay income. I have a portfolio which is diversified and the yield that I've managed to achieve is 7.9%. Most of the companies that I choose are big companies which might wobble but wont go bankrupt. You can do all your research on Dividend.com and screen your stocks according to your criteria. You can then go through the company financials with a fine tooth comb to see if there is anything catastrophic cooking in the books. I have nearly $36k invested in dividend stocks which is paying 7.9% quarterly which means I'm receiving £237 per month. All the income is reinvested to compound the dividend effect.

3. Peer to Peer Lending

Interesting thread! You should definitely include peer to peer lending in your portfolio. At the moment I have $10k invested with LendingClub.com which is paying me 6.3% per annum. Most of the companies that I invested in have an excellent credit scores. I have gone through all the companies financials with and can now spot a good company from a bad company. My ultimate goal is to be invested in 100 companies which will diversify my portfolio. So far I receive $52 per month which is all reinvested into more companies.

4. Bank Accounts and Geo Arbitraging

Most of my money is in a bank account, I guess I could diversify however I like the security of having all my money in my savings account. I work on the internet and so far over the last 5 years have saved religiously to accumulate £230,000. I receive 4% interest and get a monthly payment of £766.00. I live in Bangladesh where the cost of living quite well is £400 to £500. Any excess money along with any more that I earn on the internet is saved and compounded. My ultimate goal would be to reach £1 million and then stop working on the internet all together and just concentrate on living!

How did you make £230k living in Bangladesh?

I actually made most of my money in the UK through property development and on the internet. Once I made the money I decided to go to another country where the cost of living is much cheaper. It was a toss between Bangladesh and Thailand and I chose BD. Dhaka is a great place and it's full of westerners which makes me feel at home.

5. Mutual Funds

In addition to dividend stocks I would also include mutual funds as assets which produce income. At the moment my investment account consists of 30% dividend stocks, 30% Mutual Funds and 30% Fixed Interest Bonds. Here is a list of the top rated income funds in the USA if anyone is interested.

It was interesting how you described money as Freedom Fighters, I also believe that money can buy freedom which is why at least 75% of my income goes towards buying assets. I use 25% of my money to live, any income that is generated is reinvested. I hope to be retired really soon.

6: Peer to Peer Property Investing

Another way to generate monthly income from assets is to invest in property through a peer to peer platform. I'm using a company called House Crowd which allows you to but a share in a property for as little as £1000. You can buy several shares in one property or you can diversify your portfolio by investing in multiple properties. You receive rent on a quarterly basis but if you structure your investments properly you could generate a monthly income.

7: Invest in Royalties

You can invest in Royalties if you want to generate income. Check out the following video and site.

8: Find High Interest Bank Accounts

If you want a secure place to invest your money and want no risk at all then there is an account that is offering 6 to 10 percent interest rate savings account on regular savings. These high interest savings accounts are available to investors offer a great place to watch your money grow and prosper. If you can effectively research the banks you'll find the best high interest savings account rates. Fixed high or hi interest savings account are the best if you can lock away your money.

If you have a lot of savings and you want it to work harder for you then you need to put your money in these accounts using the following strategies.

HSBC is a good bank for savings accounts, they offer a regular savings bank account that is offering a whopping 8 - 10% interest on the money you deposit regularly. You can get a savings account online with HSBC. The maximum you can invest is £500 and if you have a lot of capital lying around you definitely need to start transferring to these bank accounts.

The first thing you have to do is open a HSBC regular savings account and also you need to find the best instant access savings account such as ING Direct. You have to transfer the capital that you have into your high interest instant access account and then drip feed the money into your regular savings account. If you have relatives who are willing to let you open accounts in their name then you can drip feed your money in quicker and earn more money.

If you're a savvy investor then you can use this strategy to really make your capital grow. Normally banks offer a savings rate of around 2 to 4% on deposit accounts so if you can get access to a 10 percent interest account you can really watch your savings flourish fast.

If you cannot get a regular savings account then you can find other banks like the Halifax who are offering regular savings account at a lower rate. You need to apply for as many high interest regular savings accounts to see which one you are eligible for and then start to drip feed your savings into these accounts to rally take advantage. You can get a list of all the high interest regular savings account on comparison sites such as moneysupermarket.

If you know someone who you can trust who has access to one of these accounts but does not have the means to regularly save then you can make an agreement to split the proceeds somehow depending on how much you can drip feed into the account. I know I'm repeating myself, however you need to make sure that you can trust this person with the money.

If you can't find anyone then did you know there are overseas banks that offer interest rates that exceed 10%, although these banks do not have any compensation scheme or regulatory bodies you can make a lot of money. I have found a bank in Bangladesh that is offering interest exceeding 10% and you can have access to the money instantly. Banks in the third world are high risk and you need to consider this carefully before you decide to invest in institutes like these. Whatever you decide to do you need to assess the risks and rewards before you decide on the account you want to go ahead with.

9: Dividend Aristocrat Stocks

I know someone mentioned dividend stocks as a way of building a passive income stream. A better idea I think is to invest in Dividend Aristocrat Stocks. Dividend Aristocrat Stocks are stocks which have a 25 year track record of increasing their dividends. If you invested $10,000 dollars in Dividend Aristocrats and you received $400 dollars in year 1 you would receive more in year 2, possibly $500. This yearly income would be rising all the time and the more aggressively you invested in these stocks the more you would get in return. If you were to reinvest the dividends you would be compounding the returns which would mean more income.

10 : Dividend Kings

Yep, investing in Dividend Aristocrats is a great way to get increasing yearly returns because the stocks are solid. If you want to go one level higher you should consider the Dividend Kings, these stocks like Dividend Aristocrats have a track record of increasing dividends but they have a track record of increasing dividends for at least 50 years which is amazing. These stocks might offer a low yield to start but as the years go on you will get a much better return. The management of these companies are top notch and they have the resilience to go through booms and bust as well as occasional calamities. If you're going to invest Dividends check out the Dividend Kings.