Well, this was an interesting month, cause I had a chance to evaluate returns from 2 new platforms. Mintos and Nordstreet. But also my first investment platform Finbee gave disappointing results. So let start my review with that.
During this month Finbee managed to disappoint me on two accounts. First of all, at the beginning of March, I deposited 150 euros. And during the month I also had 41.39€ as returns (debt repaid + interests). So its 191.39€ that I planned to lend out during this month, at 5 euros for each borrower. But sadly at the end of the month, I still have 88.47€ euros that are in the platform but are not invested. I will admit, I have set somewhat strict criteria to my auto lending settings, but I will not change them just to lend the money out. In my opinion, it’s not worth increasing the maximum loan term or the amount you lend out to one borrower, just to have your money invested faster. I would rather just wait.
Another disappointment during this month was the amount of unpaid debt. And it did fluctuate a bit during the whole month with the highest being 42.58€.
Of course, unpaid debt doesn’t mean it will end up as defaulted loans. It’s is natural that some borrowers won’t manage to pay on time. After all, they simply could be late, because their salary got delayed for a few days. And this was the case for the large portion of that money, as in a week it dropped to 8€ being late. And I get the feeling that those 8 euros are going to be late for a while.
As for the first month with Mintos, it was alright. As expected, there are significantly more late loans, than in Finbee. But that’s what you get in platforms that finance already existing loans. At the same time, late repayments are less troublesome, if you have buyback guarantee. At worst, I will only get my money back without profits. Overall, my earnings where lover than expected, but that’s mostly due to late fees.
Although I am not really a fan of this particular platform, I saw another interesting investment, so I added an extra 100 euros to this platform. So far, it is in its funding stage and will be for more than a week. If the loan won’t get financed I will get my money back. As for the existing loan, interests on it got paid in time. Also, it’s worth pointing out what the Nordstreet had to point out to their clients this month. Even though loans can have yearly rates, interests for a month are calculated by days. And given that every month varies in duration, loan repayment can wary too.
I would like to remind everyone, that when calculating monthly returns, I do not account for money invested during that month, given that it
Total size of my portfolio at the end of March is 1242.69€.
|Platform||Size at the begging of the month||Monthly change||Average interest rate||Funds added during this month|
Plans for April
April should be interesting. First of all, I might get my tax returns at the end of April, that I am planning to invest immediately. Hopefully, it won’t get delayed. It’s not a lot, but its 300 euros extra that I technically won’t need. And a year later I can turn them into 330€.
As for my normal investment plan. At the beginning of the year, I did plan to invest at least 200€ every month. But last weekend I wrote a small python program to calculate my investment portfolio growth. Apparently investing only 200€ a month won’t get me far. Or at least not where I would like to be in a year. By investing only 200€ a month, and with a 12% yearly return rate (My expectations), at the end of the year, I would only have 3232 euros. That means that it would take me at least 2 years to reach 500 euro yearly earning mark. And if anyone is not aware, in Lithuania, earnings from p2p lending are not taxed up to 500 euros. So it’s a symbolic mark where I would have to start paying taxes on earnings 🙂
Given my current situation, I am living with my parents, so I don’t pay for rent. I use public transport to go to work and don’t own a car. My expenses are basically minimal. And throughout last year, I managed to save up a couple thousand as my unexpected event fund and so far, it only grew bigger.
So the new plan is to max out on investments at least till the summer. I will have to delay my plans to move out at least till September, but more realistically till next year. In the meantime, I will invest whatever I can. With my calculations, if I keep investing 500€ every month up until the end of the year with a 12% return rate. I should have somewhere around 6000€ in my portfolio and with earnings close to 300 euros for this year. And for the next year, I should be a bit above my plan.
So in short, the current plan is to invest at least 500 euros + tax returns. Investments will be divided between Mintos.com and potentially Estateguru.co or other new platforms.
That’s all for this month 🙂
And if anyone wants to start investing, here are my affiliate links:
Click here for Mintos.com affiliate link and get 10€ bonus if you invest 500€ euros or more
And click here for Estateguru.co affiliate link and get up to 0.5% bonus for every investment during your first 3 months.