Tuesday, August 6, 2013

Money do grow on Trees!!!

Money do grow on Trees

Another Passive income that grows on trees


Mango Tree = Money Tree
How many times your parents said that Money don't grow on trees! yes they don't literally, but they can be a good additional passive income added to your portfolio of money farm. Fruit trees are good passive income, they just yield once or twice a year and its cash, it will sell like hot cakes, but before it becomes a money tree, you have to work for it at the beginning, its not easy planting a tree. Like investing, it takes lots of time, lots of risk but small capital if you already have a piece of land.

Mostly it would take 8 years before you actually realized a small fruit bearing tree potential.

You start from the seed, You have to select the best of the best, most seedling would just not grow properly, if you try to plant it, it would just eat space on the land and produce poor results, and would take you years before you realize that.


Most seedlings wont survive in the early stages, some would be eaten by insects, stepped on by frogs, played by dogs and cats, few would grow abnormally, you end up with few successful seedlings.

How strategic location is your piece of land is. Does it flood? grass fire? infertile soil?. Any of these is a threat for your tree growing, some would just die after all these years of growth.

While the fruit tree is growing, the threat of grass cutter can cut the trees accidentally if not marked properly, aside from it will be wrapped up by grass vine and dragged or wrapped on its death, or out grown by talahib grass both the roots and leaves suffocating your still small fruit tree.

Insects would be eating or brooding on your tree leaves, hampering the growth and its need for sunlight.

Duhat bitten by Fruit bats
Infertile land could stun the growth of the fruit tree and produce lesser result, you will need a fertilizer.

Then after it has grown to height, some would just die or not yield any or few fruits. And all that happens in years before you know it.

Its a pain before it reached its full growth potential, even when the trees starting to bear fruit, insects and fruit bats are at it again and even children secretly climb and steal the fruits of your labor.


After a successful strategy and trial by error, you will get your money tree, a single Duhat tree of about 15 feet can earn you P5,000 every harvest and it has not yet reached its full growth. If you go to the Mall supermarket, example is a 3 piece of mango cost P100, so you get the idea how much you will gonna get with your money tree, if you will sell it directly to consumers, and if you did you can beat them in a price war because you eliminate Middle men and overhead cost that jack up the price before it reach the market, you would still earn more even if you sell 3 piece per P60 pesos, kinda like they call Factory Price. All you need is a bike with a sidecar, a trusted person that will sell it with a promised share on the income and a weighting scale or if you want to sell it by piece if you desire, put a large low-price tag sign up front like P60 per 3 pieces as long as its cheaper than the current market price and cater it in a residential/rural area and its going to sell real fast.

Another advantage is; This investment is Economic crash proof, if the world goes upside down, value of money would be gone, stocks and banks crash, but your land is still there and your trees is giving you food, in that situation the value of your trees would increase more than a gold's worth, you can't eat gold you know.

Do you need to buy land? If you are a middle class, its quite common you have ancestral lands in the provinces, which you can talk to your relatives of your planned investments. If not, you might think about purchasing cheap farm lands, some are cheaper than cars you pay in monthly installment that you own, Real Estate is another different investment vehicle, but the best real estate investments are lands that produce money and not just a piece of idle land laying somewhere hoping for its value to increase.

In our situation this is a family farm, bought cheaply after it was ravaged by Volcanic ash fall, the soil is very infertile, it floods during rainy season and grass fire at dry season, the reason why the land is affordable for a middle class person. A select fruit tree will only grow and yield small results, but a locally made fertilizer will do the job. Mango is one of the few fruit trees that grow on it easily aside from Duhat and Guyabano. When the time comes, The income generated would be used to support the farm maintenance and be divided among siblings, aside from it a fruit staple yearly supply, so no need to buy them in the market. The place is also a good outdoor vacation or just sleeping in a hammock under a tree while waiting for the fruits to fall, like what Juan Tamad always do.


Juan Tamad Sayings:

Ok so what is my point? am I teaching you to be an investor or farmer? Well... kinda both, because the concept is the same, but I'm not telling you to dig deeper, you have to be a Jack of all trades a master of none. You don't need to be a master farmer or such, not unless its your passion, just a hobby is enough, its going to be called active income if you will put more work, time and passion on it, each passive income avenue is not a career, its a sideline but being a passive income earner overall can be a career of its own, so once you are pumping money out of something, time to move on to a different money deep well to pump some cash, you must have a diversified passive income and not only one source because it will under-perform against active income, the difference is, you can only have one active income at a time while on passive you can have 10 or more working for you at the same time, better if you have both, but you know me I'm Juan Tamad, for me working for this whole passive income avenues is my active income.



No comments:

Post a Comment