May update: 2,089 € in passive income!


Another very interesting month behind and a big step closer towards financial freedom. My first stage goal is 3,000€ in monthly passive pre-tax income, which translates to 2,100€ post-tax. As per my previous post, my monthly expenses are about 2,200€, so the goal doesn't currently completely cover my expenses, but, there is definitely some wiggle room in my budget (ehm. travel) for me to still live very comfortably with what I'm targeting.


Traffic to the blog increased from 243 visitors to 647! That's 2.7x! I'm glad more and more people are finding my endeavors interesting. I was planning to hit 300, and over-achieved by over 100%. I need to correct my goals upward. Let's see if I can hit 850 next month. I'd be satisfied with that. Spread the word!

I had +288% increase in Twitter followers from 100 to 388. At the same time, I'm finding more and more really interesting tweeps to follow. I love the personal finance blog/twitter community, it's fun to find a place with so many like-minded people from all walks of life.

I've got 25 readers in my subscription list, an increase of +150% from 10 last month 😁. If it wouldn't breach any privacy rules, I'd thank each of you individually.

I also started to look into Pinterest. I'm not quite sure yet how it works, but come say hi! Drop me a comment if I should follow you.

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 17% 759 €
Lainaaja 6% 555 €
Swaper 10% 227 €
Mintos 10% 207 €
Envestio 20% 156 €
Robocash 11% 92 €
Dividends 1% 83 €
Grupeer 12% 11 €
Real Estate 1 €
Agrikaab 32% 0 €**
Total 2,089 €
* Best guess of long-term return on investment
** Agrikaab pays out quarterly

I'm two thirds in to my first goal!

Goal: 2,089 € / 3 000 € in passive income
70 %


Passive income of other bloggers

I sound like a broken record, but the personal finance blog space is quite lovely. My philosophy has always been that the more you give, the better it is for all. There are quite a few passive income blogs in Europe and I want to document how this space is growing. There are some great gems in this list.

There are quite a few European passive income blogs. The below chart gives a good picture of how we're progressing. Last month the chart grew by flowfin.tech's blog. πŸ‘‡πŸ»





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.

I know I gave a shout out to Tony from onemillionjourney.com last month too, but there's just a gem of a post I simply can not pass. You have to read Tony's post about his experiences with trading on Forex with algos. Also, the story posted by cashflowcop of Tony is absolutely worth the read.

Also, do go and have a peek at Janneke's blog over at financiallyindependentmom.com. Her blog is definitely worth following. Why won't you start with reasons not to pay off your mortgage?

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, if not today on my blog, maybe on Tony's or Janneke's?

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

+6,687 € increase in invested capital


This chart contains capital changes in April. Positive numbers is net capital added (including reinvestments), negative numbers are net principal paid back. This includes only capital that got invested, which is why e.g. in the case of Swaper's cash drag the invested capital was actually reduced.

I added again 4,000€ in stocks, following ValueSignal's recommendations. I managed to invest the rest on RoboCash, clearing out all cash drag. I'm reducing my Bondora account, despite tremendously good performance to diversify my portfolio. My Swaper account suffers from a bit of cash drag, and Lainaaja told they are shutting down the consumer loan business! πŸ˜±

Here's what my most significant wealth looks like in categories this month.


As the pie grows, I notice getting more concerned about diversification than maximising returns. The size of the pie is about 398,000 €, and has gone down from previous month mostly due to stock market performance, cash drag and some cash sitting on paused platforms Lainaaja and Bondora.

A deeper look into the 2,086 € monthly passive income



Passive income made an all-time high at 2,089 €. Wow! This feels like a milestone to me, although I'm still far from my actual target. I'm going to celebrate this somehow, when I figure out the right thing. Any suggestions?

Let's zoom in on the different sources, shall we. Grab a coffee.

Lainaaja


Interest from Lainaaja is falling as I am withdrawing the principal from this marketplace. I got a total of 555 € from Lainaaja in April 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 has announced that they are closing their P2P lending business and will be focusing on business loans. This suits me very well as I haven't re-invested my money on Lainaaja for over a year.

Bondora


With a 30,000 € stake in Bondora, I got 759 € in interest. That's 35% 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 17% IRR, while Bondora expects 20%.

I thought last month would've been the all-time record month for Bondora, but looks like I was wrong. April beat March. 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 207 € in March which is about 11,7% per annum. There are no surprises, things just work. Mintos is a solid back bone of my P2P portfolio.

I don't mind getting interest rates like 18% (see Crowdestor below for example), but I would be thrilled to get even 10%+ on a long-term and with the muscles Mintos has, it is well equipped to weather some bad times, too.

Swaper

The Swaper portfolio is 25,862 € strong. With an income of 227 € it stands at about 11.7% annualized returns. I believe that doesn't include the 2% loyalty bonus I am entitled to, so I will see if I get that afterwards. Since Swaper has had a bit of cash drag and since I need to shrink my P2P consumer loans and grow my crowdfunding, I'm putting the free cash from Swaper into Crowdestor instead.

Swaper is a fairly hands-off platform. The only thing you need to adjust is the interest rate you're willing to accept in case you see cash drag.

RoboCash


I decided to max out RoboCash straight up, meaning I invested 10k, which is the maximum they let you invest. It has grown to 10,121 € and during April it generated 92 € interest, which is 11.5% annualized.

RoboCash is a completely hands-off platform. You are promised 12%, but you can only invest 10,000 €.

Twino

I added Twino to the portfolio. Being 3rd largest P2P marketplace in Europe, having buyback guarantees etc, I could not avoid it. I'm starting with just a 1,000 € stake for now.

Anything else missing from my list? Let me know.

Grupeer

I have 1 000 € invested in Grupeer  for now, so the returns aren't so very high either: 11 € for April, but it does translate to 13.4% annualized. Most of my investments are in 13%-interest amortized business loans, with buyback guarantee. That is pretty sweet. I'm very much starting to like Grupeer and will likely increase my investment there.

Amortized loans means my principal is also returned to me monthly. This improves my liquidity in case of a stock market opportunity. The same doesn't apply for most other crowdfunding platforms.

Envestio

First income from Envestio! I have now 10,150 € invested in Envestio and got 156 € interest paid in April. That translates to 20% annualized.

Through Envestio, I've invested in aluminium production, fruits wholesale, urban mining, sawn timber and wood pallets. All are secured debt and Envestio has a 90% buyback guarantee themselves.

Envestio has become so popular that most of their projects fill up in hours, so, if you are looking to get on board investing through Envestio, it's a good time to sign up and transfer money ready to your account. When you sign up using my affiliate link, you'll also get a 0.5% bonus interest for the first 270 days. It's a particularly good time go start on Envestio now, since they will be on holiday until the 7th of May. New projects are promised to be published on the 8th, so in a week.

Crowdestor

There are so many great marketplaces to choose from, so it took me a while before I got around investing in Crowdestor. So far I have only put 6,000 € in one project: INCH2. The company's sales growth is staggering and they are looking for funds to fuel that growth. They're also global, having access to Russia, Asia and United States. The project is still open until 5th of June. The interest is 18%, backed by Crowdestor's BuyBack fund as well as a commercial pledge by the borrower on the stocks funded. As mentioned, I took some uninvested cash from Swaper and put into the INCH2 project.

AgrikaabπŸͺ

The camel πŸͺ is doing very well, thank you.

I told last time that I bought a camel on Agrikaab and it cost me 1 375 €. In March, I got 17 € in milk dividends, but since Agrikaab pays milk dividends only quarterly, for this month and for May, there won't be income.

However, I can already see on my account that there is 124 € coming by end of Q2. That accounts for 8% of the net worth of my camel and compounded four times results in 36% annually.


For those of you interested in reading more about Agrikaab, check out the review I wrote on them.

Thanks for reading

Thank you so much dear reader for visiting! I hope you've subscribed! I think I will need to start writing some more review content on the site, let me know if there's a specific one that would interest you.


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


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