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TOM@RICHHABITS.NET
What is a Money Tree?
A Money Tree is an asset you create that generates a steady stream of income – an income stream that is automatic and that does not require expending time or energy.
How do you grow your own Money Tree?
You grow your own Money Tree by expending a massive amount of time, usually three to ten years, creating some money-generating asset.
Example: I’ve written 8 books, based on my Rich Habits Research/Study. My Rich Habits Research/Study took 5 years and each book took between six months to two years to write. Each one of those books is a Money Tree, generating Royalties all around the world, even while I sleep.
Other examples of assets you can create:
- TikTok Videos – One of my daughter’s friends shoots videos of tie-dye shirts she creates. She monetized her TikTok account after she reached 10,000 followers. Her TikTok account now generates about about $4,000 a month.
- YouTube Videos – YouTube is more complicated. You have to qualify for the YouTube Partner Program, which requires higher streaming requirements – at least 1,000 subscribers and 4,000 watch hours in the past year, or 1,000 subscribers with 10 million valid public Shorts views within the past 90 days.
- Spotify Songs – Spotify pays $3 to $5 per 1,000 streams.
- Blogging – If your Blog has enough subscribers, you will attract advertisers, who will be willing to compensate you for allowing them to advertise on your blog. Every week, I receive at least one email from an advertiser who wants to advertise on my Rich Habits website/blog.
- Podcast – Similar Money Tree model to Blogging.
- Facebook, Instagram and other social media platforms have their own proprietary Money Tree models.
- Online Courses – You can sell your course through your website or join an Online Course Platform such as Thinkific, Teachable, Learnworlds, LearnDash, Podia, Ruzuku, Acadeny of Mine, WizIQ, Udemy, Skillshare, LinkedIn Learning, Treehouse and Coursera.
- Rental Real Estate – Rental properties are only a Money Tree if you outsource the management of the property to a Property Management Company. In terms of how much cash flow you can generate, if you have very little money for a down payment on a rental property, you will have to take on debt. Paying back a lender will eat into your Money Tree cash flow. Paying a Property Management Company to manage the property, will also eat into your Money Tree cash flow. If you don’t outsource the rental property management to a Property Manager, then you will have to deal with all of the tenant issues, which does expend time and energy, making the rental property less Money Tree and more business.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, Effort-Less Wealth, Change Your Habits Change Your Life, Rich Habits Poor Habits and “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
