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Consecutive Layered Investments

Updated on November 5, 2014

When people think of investments, they typically only think of stocks and bonds...maybe mutual funds and CDs. I bet most people don't realize how many investment types there are. Military members who receive housing allowance and buying a home to later sell and collect the equity is one example. Another is buying a big ticket item that is expected to reduce costs in the long run, such as a solar panel system. Here are some investments I've tried. Following this list I will show how I move the profits of one investment into another; hence, layering:

1. Resale! I get stuff from all over, both new and used, then resell it to people who want it. Sometimes I hit up the Goodwill Outlet and get both new and used, then list on eBay or Amazon for a profit. See my other articles for tips on this: http://aubreydurkin.hubpages.com/hub/Ebay-Seller-Jackpot.

2. Peer to peer lending. You can choose who you lend to, and your options run from high risk/high interest to low risk/low interest. I prefer to invest in people who are using the money for the more responsible reasons, and preferably who have never missed a payment. Lending Club is my preferred choice. They take a slice out of the interest you earn, but their platform is fire and forget. You can put the dividends back in to reinvest.

3. Recommended stocks. This one seems obvious. I don't put a lot into these. Just an egg or two into each basket. Sometimes it goes up, sometimes down. With a pot on each burner, you can typically ride it out and still come out with dividends. Just keep a watchful eye on the consistent losers. Sometimes you need to just cut your losses.

4. Passive income. Writing articles and submitting other content yields some money. I haven't gotten rich yet but for example, public domain books make me a cool $100 to $200 per month. That's not bad for a few minutes of work a day to publish it.

Ok, here we are! Now I show you how I take these profits and dividends and redistribute them. My resale profits and passive income get dumped into peer to peer lending first. I put $200 into lending each month. It's essentially making free money from easy money. My dividends go into new loans. I have a full time job so I don't have to rely on the money as income. I reinvest part of my resale profits into new inventory. Whatever is left goes into regular stocks. Dividends go into more stocks. I primarily use leftover resale profits and disposable income to fund my rotating resale inventory.

You could almost see this like the food chain. My disposable income is the producer. Resale profits are the primary consumer. Lending and stocks are the secondary consumer. The reinvested dividends are the tertiary consumer. Someday when I'm old and retired, I'll be the scavenger. Seems like a pretty good system to me!

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