Earning Assets

When a company or individual has assets that just sit there making money for them, they’re called “earning assets.” Ideally, earning assets provide a relatively steady stream of income at little to no maintenance, making them good for long-term "set and forget"-type planning.

Earning assets are investments that will keep on giving, and assets that can later be sold for their inherent value. Yep, your typical stocks and bonds can be earning assets, but also landlord income (which does require more upkeep, though), CDs, and other debt instruments designed to gain interest and/or dividends.

When you hear “make your money work for you,” it’s either someone telling you that you should open an investment account that you don’t already have, or they want you to invest in their startup. Which might be a scam. And, uh...it’s probably a scam. Tread carefully.