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If you want a more in-depth analysis of the pros and cons, read my article: Crowdfarming: Diversify Your Income Stream By Buying A Cow!
Why Do You Want To Buy A Cow?
There’s a saying that rich people have at least 7 sources of income.
This makes sense because if you invest all your money in stocks and the stock market crashes, you lose all your money.
If you invest most of your money in rental properties and people stop renting, you lose income.
Diversifying your income stream is good for diversifying your risk of loss.
Why do you want to invest in a cow?
Because you want to diversify your passive income stream, and because it’s a cool idea.
Also, because livestock wealth.com, who you’ll see shortly, says that an investment in their cows return about 10-14% when they sell it to the market and give you your cut of the profits.
So without further adieu, let’s get moo-ving.
Step 1. Go to Livestockwealth.com
Livestockwealth.com is the first website I saw that allowed you to buy a cow for passive income investing.
I am not being paid by them to write this.
Nor is that an affiliate link.
I just thought it would be cool for you to diversify your income stream with a cow.
They also take care of the cows for you and will replace it free of charge should anything happen to it (i.e., it dies, gets lost or stolen).
Step 2. Make an Account
Making an account took me less than 5 minutes.
Step 3. Pick a Cow
When I was buying a cow, there were 20 to choose from.
I just picked the one that looked the healthiest and big, like it would get a good price on the market.
Depending on when you check the list, there might not be any available for you to buy.
For example, when I went to check a couple of days later, there were no more cows to buy.
They get snapped up like hot cakes from people all over the world.
In an email, they told me they have investors from America, Europe, Singapore, all over Asia, etc.
I checked a week later and they added 20 more cows from another farm.
So your results may vary.
Step 4. Pay for It
It took less than 5 minutes to pay with my credit card.
Whereas investing in rental properties requires a higher price to enter the market ranging from tens to hundreds of thousands of USD, buying a calf on this website cost me $807 USD (about 10,980 Rand, which you pay for in South African Dollars).
I bought with my credit card to rack up points, plus my Barclay International credit card doesn’t charge international exchange fees.
I then paid off my credit card the next day with cash from my checking account so I didn’t get charged credit card interest.
If you have a credit card that gets 2% cash back, and the cows return 10-14%, you’re able to boost your returns to about 12-16%.
Someone double check my math to make sure.
You can buy a pregnant cow for around $1400 USD.
Step 5. Wait 6-12 months
The calf is sold about 6 months after you buy it, and you get a portion of the profits, along with your initial investment back.
You can then buy another calf.
With the pregnant cow, you wait about a year because it takes the cow about 9 months to give birth, and then 3 months for the calf to be weaned and sold.
You make a profit on the sale of the calf.
You can then invest in the same cow to get pregnant again or in a different cow.
If $807 USD to invest in a cow is too pricey for you right now, what I’m currently doing is putting away $20 a week into my Ally Bank Savings Account so it’s getting 2.20% interest for the 50 or so weeks it’s going to take me to save up that money.
That way, I can buy one cow a year.
I’d do this on top of buying another cow with the money I get back from the first one.
You can imagine in 20 years or so you could have your own mini herd of cows earning you passive income while you sleep!
This is truly the epitome of passive income investing.
Remember, this was merely the simplified steps on how to invest in a cow for passive income.
If you want the more in-depth pros and cons of this investment method, I lay it all out in this post: Crowdfarming: Diversify Your Income Stream By Buying A Cow!
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