April 2019 Update: 17 € from camel milk πŸ•ΊπŸ»


Such an interesting month! Wow! I'm calling this my April update, because I don't think I will be able to always do an update of the passed month right after the month changes. So, as I'm giving my update in April, this is the April update.

Traffic increased from 169 visitors to 243 😁. Now, absolute terms that's no much, but relative terms that's an increase of 44% month-over-month! I'm going to hit over 300 next month. It's a marathon, not a sprint.

I reached 100 Twitter followers, yay! I probably had less than 40 in the beginning of the month, so over +100% growth. I'm sure it gets tougher at some point.

I have 10 readers on my mailing list! That's 5 more than what I did in the beginning. Another +100% growth.

I have a couple of other blogs I write to, but the take off of this one has by far surpassed the others. I feel bad for not finding time to write to all of them enough. I will do my best though! πŸ™ƒ

Let's get to the actual content, what you're here for. Passive income of this month: πŸ‘‡πŸ»

annualized income
Bondora 18% 634 €
Lainaaja 7% 482 €
Mintos 11% 185 €
Dividends 1% 83 €
Swaper 11% 45 €
Robocash 4% 34 €
Agrikaab 28% 17 €
Grupeer 2% 2 €
Total 1 482 €

This gets me just about half-way to my goal

Goal: 1 482 € / 3 000 € in passive income
49 %


Passive income of other bloggers

About a month ago I decided to do something that would glue the passive income blogosphere a bit tighter together. There's already such a tight community around finance bloggers and I wanted to create something that visualizes what's happening.

I was a little hesitant to kick this off, as it meant reaching out to such awesome bloggers and propose joining in my first collaboration idea. What if they said no? What if they wanted a walled garden? But they are all such awesome folk. The personal finance blog community is pretty darn great, I'm so happy I got out of my Finnish-only shell.

Here's what's happening.





I'm the only blogger on a steady decline, yay! Me, financiallyfree and hustletoindependence are slightly further on the road, which is why I would like to highlight some of the other bloggers.

I've always thought that this isn't a zero-sum game. You shout out to others and it's not a favor someone will pay back, it actually helps the whole blogosphere grow. This time I'd like to first highlight Tony from onemillionjourney. Read his two latest blog posts (this and this), where he also has embedded the above graph (cheers!). He also goes on to describe in excruciating detail how he was dealt a real shitty month on March when his algotech investments tanked worse than you have ever experienced I'm sure (if not, let me know in the comments). Go give him a comment, follow on πŸ¦ and subscribe to his blog.

I would also want to highlight route2fi whose blog is featuring my interview today. The guy behind route2fi is staying anonymous, but he's from Norway, early 30s and has about 5 years left to FIRE. He's at the moment probably the most driven blogger I'm following, just judging by the volume of contribution on his blog and twitter. Follow him and subscribe to his blog too. ☝🏻

Readers, every time you comment on any one of these blogs, you're creating positivity. We all appreciate it tremendously and especially those of us with a small readership. So thank you for your comments!

Bloggers, if you wish to join the above graph, just drop me an email, or read more instructions.

44 000 € from cash to investments



This chart contains principal changes in March on the passive income portfolio. Positive numbers is net principal added (including reinvestments), negative numbers are net principal paid back. This include only cash that got invested, which is why e.g. in the case of RoboCash and Swaper it doesn't yet reflect my account values on the platforms, but instead the principal added to loans.

With an additional 4 000 € to a couple of stocks, that brings the total invested up to 44 000 € in March. πŸ€˜πŸ» This is very big money for me. That's almost two years worth of living expenses including travel, everything. When we exclude cash, car and some other random items, here's how my wealth looks like:



As the pie grows, I notice getting more concerned about diversification than maximising returns. Currently, as my stocks portfolio has gone down a little bit again, the size of the pie is about 402 000 €.


A deeper look into the 1482 € monthly passive income


Passive income bounced up a little to 1 482 €. Gone are the days when my passive income portfolio generated nearly 2000 € per month, but I should be bouncing back soon. Let's look at the individual market places.

Lainaaja


Interest from Lainaaja is falling as I am withdrawing the principal from this marketplace. I got a total of 482 € from Lainaaja in March 2019. As I've said previously, it was not a great idea to put all the eggs in one basket 😟, so I'm divesting my Lainaaja portfolio. Also, even though the Lainaaja portfolio is over 3x my Bondora portfolio, the returns are smaller. Not the greatest move there to be honest. Quite disappointing, actually.

Lainaaja is very much like Bondora, but in Finland. Only they offer consumer loans with up to 28% interest to investors. They don't have buy back guarantee, which is why many avoid them. Early on Lainaaja performed very well, hitting close to 18% returns, but now I'm barely getting 6%. If you want me to, I can write more about my whole Lainaaja experience, but as it's a Finnish service it would need to be quite generic about what things to avoid.

I'm not going to sell my portfolio, since I would have to give ridiculous discounts for my late loans. Instead, I'll investigate how late loans work and I imagine there will be actually quite a bit of money to be made from buying defaulted loans from the aftermarket - if you're willing to wait.

Bondora


I'm having very mixed feelings about Bondora. The truth is, I love it. With a 30 000 € stake, I got 634 € in interest. That's 28,5% per annum. The unfortunate part is of course that not all principal is recovered, which means there will be some defaults and losses. To try and estimate what your overall annual returns end up being, there needs to be some assumptions, like how much will you need to write off from your principal. I'm going to keep developing my own Google Sheets for this purpose, which currently gives me a guess of 18% IRR, while Bondora expects 22%.

It's a record month for Bondora, but it's going to be the last one for a while. I've decided decrease my portfolio in Bondora to balance it with other platforms. I'm not going to sell the portfolio nor will I convert to Go & Grow, since I'm interested in how the late loans behave. Stick with me!

Mintos


I'm really happy with Mintos as it's just a steady performer. Revenue from the platform was 185 € in March which is about 10,8% per annum. There's little surprises, things just work. Sometimes there's a bit of cash drag, but now as P2P-millionaire proofed that the secondary market is so liquid, there's very little concerns for me. It's a steady backbone of any P2P portfolio in my opinion.

Swaper


I had quite high hopes for Swaper for March. Before March begun, my position was already at 5000 € with 25 000 € added during March. As it happens, the new principal had too little time to generate returns, which were left at only 45€, but even that is already 11,4% per annum, and I believe that doesn't include the 2% loyalty bonus I am entitled to. So yay!

RoboCash


I decided to max out RoboCash straight up, meaning I invested 10 000 €, which is the maximum they let you invest. All of it is now invested and during March it generated 34 € interest. This isn't a lot in terms of annual returns, only about 4%, but it's only the first month and there was some cash drag, so I believe it will go up to the 12% they are promising.

Did you notice RoboCash was relocating to Croatia? I imagine Croatia has a more favorable legal environment for such operations.

Grupeer

Principal of Grupeer for me is only 1 000 € for now, so the returns aren't so very high either: 1.50€ for March. I'm beginning to like Grupeer and consider making it a significant piece of my balanced portfolio. I'm so glad there's so many great platforms to choose from!

No graph for Grupeer just yet, or return rate calculations. Next month, I promise!

AgrikaabπŸͺ

Now the thing everyone has eagerly been waiting for. How is my camel πŸͺ ?

So I bought a camel on Agrikaab and it cost me 1 375 €. Milk is returned quarterly, and so far I have 17 € paid back to my Agrikaab account. Since I had time to own the camel for 13 days, that converts to about 28% interest per annum.

Now, the real hard reality.

5 bombs have gone off in Mogadishu in the last 30 days only. One of the buildings that got destroyed by a bomb in the beginning of March is the same one that Agrikaab held their office. Two employees were injured and other lives were lost.


 I got an email later from Agrikaab where they were fairly apologetic, saying that these bombings have lead to law enforcement severely limiting access to the city. This means of course that delivering camel milk to the customers from the farm outside of the city is more difficult than usual, and can therefore lead to smaller returns.

Look, I'm just happy bombs don't go off where I live. I'm happy owning a camel if it helps them build a more sustainable way of living.

Thanks for reading

Thank you so much dear reader for visiting! I hope you've subscribed! I've got some nice content coming up, hopefully already during April. Do you know what hyperbolic discounting is? You do it more naturally than exponential discounting and I'll tell you how people are making money from it. For example.


And before you leave, why don't you say hi? πŸ˜Š πŸ‘‡πŸ»


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