When most people think about investing, their minds immediately jump to traditional financial assets—stocks, bonds, and real estate investments. But there’s an entirely different class of assets out there, one that doesn’t require a ton of upfront capital and can provide uncorrelated returns with the proper time investment: what I like to call the “Poor Man’s Alternative Assets”.
These aren’t your typical investments. They aren’t traded on any stock exchange, don’t require a broker, and there’s no ETF to package them into neat little portfolios. Instead, I’m talking about building blogs, starting YouTube channels, launching small businesses, and creating other online platforms. In an era where traditional financial markets can be volatile and unpredictable, the “Poor Man’s Alternative Assets” provide a unique opportunity to build wealth at the cost of time and skill. To be entirely clear, this is not passive income, and I do not want anyone to think building an asset in this asset class is passive.
What Are the Poor Man’s Alternative Assets?
So, what exactly qualifies as a “Poor Man’s Alternative Asset”? The term might sound a bit self-deprecating, but it’s really more of a nod to the accessibility of these investments. Unlike buying a rental property or pouring money into a diversified portfolio, these assets are available to anyone with an internet connection, a bit of creativity, and work ethic. Here are a few examples:
Blogs
With consistent content, you can build a blog that attracts a steady stream of visitors. Over time, that traffic can be monetized through various channels such as ads, affiliate marketing, sponsored posts, and even selling your own products or services.
Truthfully, PortfolioLiteracy.com is one of my “Poor Man’s Alternative Asset”. As of the making of this post there is no monetization as of yet, because I want to focus on creating free educational content first. In the future, I will add monetization channels that are consistent with providing free and transparent content around financial literacy. When I get to a point where there is a form of cash flow from the website, I will make a post about it and how well PortfolioLiteracy.com is performing.
YouTube Channels
Video content is great at capturing visual and audial attention, and platforms like YouTube offer an incredible opportunity to build an audience and monetize it. Whether you’re passionate about cooking, tech reviews, or personal finance, there’s a niche for you. Once you’ve built an audience, you can monetize through your YouTube creator account, in video ads, sponsorships, and merchandise becomes possible.
Small Businesses
From e-commerce stores to digital products, there’s no shortage of ways to start an online business with minimal upfront investment. The barriers to entry are low, and with platforms like Shopify, Etsy, and Fiverr, you don’t even need to be tech-savvy to get started. The best form of marketing would be to own your own marketing channel(s), so this should be conjoined with a YouTube channel or a blog, which ever would best capture your target audience’s attention.
I do not want to ignore a small mom & pop or local services business in this subsection. They are different from online businesses predominantly because they have more overhead with a store or paying for gas to get to a customer’s location. The benefit internet would have with these businesses is marketing, every business must have a website today and can build their reach with the other Poor Man’s Alternative Assets on this list.
Social Media Account
Love Instagram or TikTok? Building a following on social media can be incredibly lucrative. Brands are always on the lookout for influencers or ambassadors for their products to a targeted audience. While it’s not easy to build a following, you can make .5%-2% of your follower count in income on a sponsored post depending on how niche your account’s brand is.
The Financial Opportunities from Poor Man’s Alternative Assets
One of the most compelling aspects of the Poor Man’s Alternative Assets is that they provide uncorrelated returns. Uncorrelated assets are those that don’t move in tandem with the broader market. When the stock market is down, these assets can still perform well, maybe even thrive.
For instance, during a market downturn, ad revenue on a popular blog or YouTube channel might remain stable or even increase if your content addresses the concerns of your audience during tough times. A small online business selling unique, high-quality products can continue to generate sales regardless of market fluctuations since the economy is not 100% in line with the stock market. In this way, these assets can provide a hedge against traditional market risks. Your primary form of return is income, while it is possible to sell the Poor Man’s Alternative Assets, they sell at a lower multiple on the asset’s cash flows than a regular business would. This is because the primary drive in the income for the asset is the singular owner’s work.
You have the opportunity to see all the reward of your work, whereas in your normal W-2 job, you only see a portion of it. There is significant room for upside, and you get to capture all of it financially. If you get to a point where you are reaching new milestones, whether it be (justifiably) hiring someone or crossing an insane $100K in earnings from the asset, you are building something incredible, and it means you have potential to keep growing. I believe these assets can outpace your W-2 income growth in the right circumstances; however, it does not come without its challenges.
The Challenges of Building the Poor Man’s Alternative Assets
Of course, it’s not all sunshine and rainbows. Building what I call the “Poor Man’s Alternative Assets” comes with its own set of challenges. First and foremost is the time commitment. These assets require ongoing effort because they are in themselves businesses. You need to consistently create content, engage with your audience, and stay on top of trends in your niche.
Then there’s the issue of getting started. The low barriers to entry mean that everyone can start a blog, YouTube channel, or online business. Standing out in a crowded market is tough, and it can be discouraging when you’re not seeing immediate results. The internet is filled with stories of people who started blogs or YouTube channels only to abandon them a few months later when the traffic didn’t materialize.
But here’s the thing: those who stick with it, who push through the initial growing pains, often find themselves in a very different place a few years down the line. What starts as a ‘side hustle’ can grow into a substantial income stream, or even a full-time business.
Final Thoughts: Is It Worth It?
So, are the “Poor Man’s Alternative Assets” worth the time and effort? In my opinion, absolutely. They offer financial opportunities that’s hard to achieve with traditional investments alone. The uncorrelated returns and the potential for significant financial rewards make them an attractive option for anyone willing to put in the work.
That said, they’re not for everyone. If you’re looking for a quick, easy way to make money, the “Poor Man’s Alternative Assets” probably aren’t for you. But if you’re willing to invest your time, energy, and creativity, the rewards can be substantial. Plus, there’s something deeply satisfying about building something from scratch—something that’s yours, that you control, and that can provide a lasting impact on your financial future.
In the end, the Poor Man’s Alternative Assets aren’t just a way to make money; they’re a way to take control of your financial future. And in a world where so much feels out of our control, that’s an investment worth making.