Money Trees You Can Plant Right Now

 

‘Ok so the Money Tree Man has told me how I can be rich and happy by planting Money Trees. I have some spare cash now and not one more penny can fit under my mattress, so how do I get to start growing my own?’ Well, good sir, my answer to that question is build yourself some passive income streams. ‘Passive income streams’ is a fancy way of saying, ‘go on an’ plant yo’self a Money Tree!’ and it is basically an asset that pays you while you do very little (or sometimes nothing) to keep that cash coming in… indefinitely!
Now this may sound like those ‘Make millions working from home’ adverts, but as you are about to see there is nothing quick and easy about planting Money Trees; the fruit of which are the rewards of long-term planning and commitment to your own financial goals.
Below I have summarised some of the best types of Money Trees out there (in my experience), because I’m just that awesome. Enjoy…
Debt
There are many four letter words that can hurt a person, but not many of them can break families, destroy marriages and literally kill people; debt. Debt does this. But it doesn’t have to be that way. While debt has absolutely no place in the Money Tree lifestyle (this includes your mortgage!), it is in fact a huge opportunity for some big monetary gains! Debt – or rather paying off debt- is the sole investment out there that can give you income FOR THE REST OF YOUR LIFE – GUARANTEED.
I once had a £2000 overdraft*. It was interest-free, and I was a student so I went nuts. Before long, the interest-free honeymoon period ended and left me financially knocked-up paying £29.16/month. I did the maths and found out that was a 17.5% rate they were hitting me with. The swine! After a brief period of struggling with Little bitch syndrome, it hit me; this is the best return on investment I could ever dream of finding and it was a return that was 100% guaranteed! With all symptoms of Lil’ bitch syndrome now gone, I proceeded to clear this debt and now I have £29.16/month more than I used to, and that will last forever! Best. Investment. Ever.

 

Peer-to-Peer lending
*YAWN!*
I’ve been debt-free for years, Money Tree Man, and all that paying off debt stuff is beneath me!’
Well what if I told you that there was a way you lend random strangers your hard-earned money, and they will pay you back with interest? When I first heard about this, I immediately looked into it and, after ensuring that it was not a Nigerian Prince delivering me this information, I was fully on board. The way it works is that a company matches your willingness to lend with those willing to borrow and you sit back, grab a tea, and hit F5**  once every few weeks and literally watch the returns roll in.

 

There are many p2ps out there but I can only speak for the two that I have used, and they work admirably! There is Zopa, which splits my deposits into various £10 loans and lends each tenner to whatever punter wants to get their eyes lasered out or whatever. For example a £2000 deposit becomes 200 different money trees that each get added to various other people’s £10 trees and loaned to the guy down the road that wants a loft conversion. The other p2p I can vouch for is Lendinvest. A p2p that matches your cash with people looking to buy/renovate/build property. The returns are always pretty badass here too so I literally go nuts every time I get an email from them with a new investment opportunity!

 

Stocks and shares
Whenever I hear people talk about the stock market, they seem to have this idea that it’s all Wolf on Wall Street; people running around like headless chickens, screaming their throats out on the phone and throwing a dwarf or two onto a giant dartboard. While I will admit that it is very much these things, it is very much NOT these things for you. My FTSE100*** holdings are some of my most high-yeilding assets to date. Like clockwork, companies spit out dividends throughout the year and, like clockwork, I am there ready to gobble said dividends up – and you can too! More on how I pick shares later, but the point is that it is a lot easier than films, TV shows and books. make you think it is!
I personally buy shares through the Hargreaves Landsdown Fund & Share Account. HL are a very well established stockbroker with rather high fees relative to the competition. Unlike the competition however, their customer service is simply top draw – which was very important to me when I started out on the path to plant a forest of Money trees. I have called them to ask them every idiosyncratic question possible, and they have only been too happy to answer me which has saved me making mistakes that would have cost me far more than the amount they charge me to trade with them!
So there you have it. MTM’s quick guide on how to start growing your own money trees today!

 

*I actually completed paying off this bad boy this month – yay me!
**R for all you Mac twats.
*** Don’t know who decided it was a good idea to name our stock market footsie…

20 Comments

  1. MTM, I am currently a student in my final year – I have also made full use of my interest free overdraft. I think the santander 123 graduate account stays interest free for 3 years (so a pretty decent honeymoon period). How soon should I start paying it off?

    1. Hi Florence, thanks for your comment. You’re already smarter than me in the fact that you’re already thinking about this, though I would err on the side of caution. Banks would love for you to end up paying them interest indefinitely, so if you do not feel that you can pay off the whole amount before the overdraft is no longer interest free, I’d advise you to pay it off.

      If, however, you find that you are comfortably saving alongside the overdraft – that’s great! Save during that time, use the ‘free money’ until it is no longer free, then pay it off in one big swoop!

      1. Thanks for the advice. I hope (when I get a graduate job) to be comfortably saving! Paying it off in one big swoop at the end of the 3 years, I always thought this was quite risky? Banks have a nasty habit of changing their t&cs…

  2. Can you please break down each one? As in how do they work? This sound very interesting but could you make a post that was idiot proof. Because I am and idiot hehe

    1. HAHA! Jess I will do! I was thinking of doing a series that broke down all the streams/trees and invite people to let me know if they know of any that I haven’t covered!

  3. MTM,
    Glad your girlfriend introduced us. Sounds like you got your work cut out for you with the student loan etc. But you’ve got the right mindset. I like what you’ve got going on here, but still trying to figure out what Fug is. My middle school years has me thinking something not money related.
    -RBD

    1. Ha! “Fug Life” was just something I say amongst friends – though now I thing about it, not all readers will understand what it means, so I may have to change that… It basically means Financial Thug Life. e.g. if somebody lives by holding on to more money and spending less, they are living the Fug Life

      And yeah the student loan is the biggie, but the first step was setting up a plan and breaking everything down into digestible chunks – now it doesn’t seem like such an outrageous goal to go from deep in the red, to far enough in the black so as to become financially independent!

      p.s. really means a lot that you took the time to come and read some of my articles! I have had a look at your blog and you are by far a Master at this whole financial independence thing – $800+ in passive income for January ’17 alone… I am rooting for you to get to $1000 in a single month very soon!

      p.p.s. there are a couple of Americanisms that don’t translate (I just googled: ‘what is a 401k roth?’) but from what it read, you an I are very similar in approach – consider this Englishman hooked onto RBD!

    2. RBD, thank you so much for commenting on our blog, it means a lot! I stumbled across your blog not too long ago & it’s amazing how people from two different continents can share such similar views.

      Great to see that the ideals MTM lives by already has a precedent. Thanks RBD for sharing this with us!

      Money Tree Lady

  4. I was just about to comment somewhere if you were going to post about building passive income streams before I saw this golden nugget. Currently looking into how I can invest my money & watch it gradually stack up – I see potential in P2P’s, brill suggestions – thanks for this MTM!

    1. no worries Brooklyn! and thanks for the comment! p2p is a great way of building income streams very easily. it’s also quite fun to watch your money grow! There are many out there and the returns are sooooo much better than a traditional bank. I use Zopa and Lendinvest and the cash you get monthly is excellent! Let me know if you ever need any more information =]

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