September 2019 update: Passive income 1,792 €


Highlights from past month:
  • Passive income increased slightly to 1,792 €
  • Blog income jumped to 960 €!!!
  • Stocks are taking a beating, but that's O.K!

For those who are new, hi! I'm The Wealthy Finn! I'm glad you're here!

I'm going to become financially independent. I almost feel like I am already. You don't actually need a lot of money to live a good life. With 400k€+, I am already at a point where I feel like I can do what I like. But I can't just stop going to work, not just yet.

My first stage goal is 3,000€ in monthly passive pre-tax income, which translates to 2,100€ post-tax. As per my earlier 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.

What's new?

I've dropped hints here and there about changes in my job front and there's a blog post coming on that, with the kind of angle I want. There's a lot to it that cannot be covered in this post, but in short, I managed to increase my salary quite significantly while transforming my role into something much more interesting and valuable at the same time. It's really a win-win. There's an equity upside to it as well, but not a significant game changer. I'll write more about it in another post.

It was a good month for the blog. Monthly unique visitors grew to 2,075 (1,476), which is a 40% increase from previous month. I've considered a great long-term goal as about 30,000 unique monthly visitors, so need to double that less than four times now!

Subscribers grew to 119 (107), twitter followers to 1136 (891). I am pleased! These things tend to compound. I am absolutely thrilled to see such stead growth in visitors.

I thank you, dear reader!

Let's get to the actual content, what you're here for. Passive-ish income of this month: 👇🏻

income annualized*
Blog 961 € -
Bondora 474 € 17%
Lainaaja 306 € 7%
Mintos 248 € 12%
Swaper 245 € 16%
Envestio 131 € 18%
Robocash 105 € 13%
Crowdestor 91 € 17%
Dividends 83 € 1%
Grupeer 61 € 13%
Kuetzal 17 € 19%
Fastinvest 11 € 12%
Peerberry 11 € 12%
Viainvest 8 € 10%
Bulkestate 0 € 15%
Crowdestate 0 € 10%
Trine 0 € 7%
Agrikaab 0 € 32%**
Total 2,753 €
* Best guess of long-term return on investment
** Agrikaab pays out quarterly

Blog income isn't truly passive, so if we count that out, I'm at 1,792 € for August, which sets me at 60% from my goal (last month 1,775€ / 59%). I have deducted loan principal payment of rental apartment (260 €) from rent. Blog income isn't passive really and with the apartment, it's income I don't really have access to.

Goal: 1,792 € / 3 000 € in passive income
60 %


Passive income of other bloggers

There are quite a few European passive income blogs. The below chart gives a good picture of how we're progressing (instructions to contribute).

Heads up! I'll start to sort the chart based on where it gets most traffic (i.e. where it is embedded), currently onemillionjourney.com is in a clear lead (Cheers Tony!). Those blogs that aren't generating traffic I'll probably clean up. Let me know if you think I'm making a mistake on that.

Check out the full chart 👇🏻




Invested capital reduced by 7,949 €



This chart contains capital changes in August. Positive numbers is net capital added (including reinvestments), negative numbers are net principal paid back. This includes only capital that got invested.

Stocks took again a huge hit, but have I lost any sleep over it? No. Why? Because stocks are 1/4 of the wealth I track, 1/3 of my portfolio.

My crowdlending portfolio was set so strong precisely for the reason that I was expecting stocks to increase in volatility. I will sit tight and when blood runs the streets I will start diverting my crowdlending portfolio to stocks, swinging the other direction. That's the plan!

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

a pie chart illustrating how net worth is distributed across different assets


As the pie grows, I notice getting more concerned about diversification than maximising returns. The size of the pie is about 384,000 €, and has come down from last month (391,000). Main reason is stock markets and not re-investing aggressively enough my cash.

A deeper look into the 1,792 € monthly passive income

passive income by month chart

Passive income increased slightly from 1,775 € last month to 1,791 €. Unfortnuately, I need 26,477 post tax to support my current lifestyle. There's still some way to go.

But as said, blog income jumped to almost 1,000 €! That was surprising.

Let's zoom in on the different sources.

Blog income

a bar chart of monthly blog income. August 2019 income is 961€.

Due to a few requests on this, I decided to start tracking blog income in these posts too. Blog income is not very passive, so I'm excluding it from the total passive income. Still, it's income I can use to quit my job and it scales well.

Blog income almost tripled from 380 € to 960 €. This took me completely by surprise. This does include some income from the Finnish blog too, but I'm mostly nowadays translating my English texts to the Finnish blog, so it's nowhere near twice the effort. Maybe 20% more?

Many have asked me about the blog income: "how do you do it" and "what's your income split". I don't think it's wise for me to give an exact answer, a step-by-step copy-paste guide to my blog income, but I can give you hints.

Compared to the traffic it gets, one of my best performing affiliate programs is a Finnish-only program that helps refinance mortgages. It works because it creates immediate value. I'm currently trying to repeat that on other markets, but am not really succeeding very well, since mortgage refinancers are a little difficult to find. It'll take a while to build that partnership network.

I'll tell you more next time. I'm also thinking about starting a podcast that would focus on this side more. We'll see!

Lainaaja



Interest from Lainaaja is falling as I am withdrawing the principal from this marketplace. Lainaaja is shutting down their peer lending operations and it might not sense to follow this too much longer.

Lainaaja increased slightly from 285€ in June to  303€.

Bondora


With still 26,470 € in Bondora, I got 474 € (compared to 506 €) in interest. That's 22% 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's currently gives me 14%.

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!

There's also a proper review on Bondora, you should read it!

Mintos


Invest & Access means I need to re-think my Mintos position. It's still a very steady performer. Maybe better than before?

With 23,428€ invested, the revenue from the platform was 248 € (234 €) which is about 13% per annum.

My auto invest settings experienced a bit of cash drag so I converted a bunch of my portfolio into Invest & Access. Since the precedence is always in Invest & Access portfolios, my previous settings no longer work.

If you haven't checked out my Mintos review, please do so! I touch on this point about Invest & Access as well in it.

Swaper


The Swaper portfolio increased to 20,240 € (20,033 €). With an income of 245 € (compared to 119 €) it stands at about 16% annualized returns.

Since I have over 5000 € on Swaper, I'm entitled to a 2% loyalty bonus and most of my loans are 11%, over time I should be looking at roughly 13%+ returns.

Swaper is a fairly hands-off platform. To tackle cash drag, I created multiple auto-investment profiles. I believe it means I'm investing in the same loans many times over, but since Swaper has full buyback guarantee and since they're backed by a larger organization, I am taking the risk.

RoboCash


RoboCash accepts deposits up to 10,000 € only, so that's what I did. That has now grown to 10,508 € (10,412 €) and yielded 105 € interest (90 €), which is about 13% annualized.

RoboCash is a completely hands-off platform. I have a full review on RoboCash too. Please do read it, it's one of my favorite platforms!

Grupeer


I now have 6,108 € invested in Grupeer. I got 60 € interest for this, which is about 13% annualized. The jump is because of increasing the capital by 5x.

I have a lot of trust on Grupeer and I think it has a good chance to grow as my top platform, perhaps even over Mintos.

Most of my investments are in 13%-interest amortized business loans, with buyback guarantee. That is pretty sweet.

Here's my review on Grupeer.

Envestio


Invested principal increased back to 10,833 € (8,828 €) on Envestio and I got 131 € interest for it (196 €). That translates to 16 % annualized. The fluctuation is because some of the principal was unused for a while.

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% cashback for investments you make within the first 270 days.

Go have a look at my review on Envestio!

Crowdestor



Crowdestor is definitely something to consider.

I've currently invested 6,204 € on two different projects, and it yielded me 91 € interest last month. Exactly the same as previous. That's 19% annualized.

I very recently wrote my Crowdestor review. There's a lot to be liked there and especially the way they tackle platform risk with a buyback fund versus a buyback guarantee. Love it.

Fast Invest



Fast Invest is a very clean and simple P2P lending platform.

So far I only have 996 € invested on Fast Invest (there's a bit of cash drag). Interest was 11 €, which means 14% annually.

I like Fast Invest in that it's a very straight forward, clean, usable platform. They provide buyback guarantees and have a lot of loans with 12% interests. So as long as the platform stays up, it's a great one to diversify your portfolio on. I know I will.

Kuetzal


Kuetzal is a brilliant platform that I will definitely bet more on from now on.

I so far only have 1,010 € invested on Kuetzal as I'm just starting out. My interest was 17 €, which is about 22%. Looking at these and since I have a bit of free cash, I decided to deposit another 5000 € to Kuetzal just now.

What makes Kuetzal so frigging great is that it has very attractive projects with high interest, which are still covered by a buyback guarantee. I'm not sure how long that will last, so better be quick if you want to enjoy those. I also like that it is great balance to my consumer loan portfolio.

I wrote a review on Kuetzal, which I think you should also read.

Peerberry


Peerberry is another P2P consumer crowdlending platform.

For now I have 1,004 € invested on Peerberry and got 11 € in interest, which is about 14%. I expect it to stay that way.

Peerberry also offers buyback guarantees for the loans. It's a very simple, clean platform again. Great for anyone looking to diversify their consumer crowdlending portfolio.

Viainvest


A very similar story to Peerberry, Viainvest is another P2P consumer lending platform with very similar specs.

I have 1,010 € invested in ViaInvest and got 8 € in interest, which annualized is about 10 %

Agrikaab

The camel 🐪 is doing very well, thank you.

I have previously told that I bought a camel on Agrikaab and it cost me 1 375 €.

Normally the camel pays dividends of 8% per quarter, so will have to wait for one more month.

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

Other platforms

Trine: I invested 1,000 € in a one-year project to offset 4 people's CO2 emissions, with an expected interest of 7%. I wrote about it in an earlier blog post, but now also covered Trine in a proper review. I love trine: you work on your financial independence while working on saving the planet. Perfect!

I also opened accounts and invested 1,000 € in Bulkestate and another 1,000 € on crowdestate but haven't received any income from them yet.

Just recently I invested on The Sun Exchange, which lets you buy and lease solar cells in South Africa: they get electricity, you get income. If you want to help, like and retweet this tweet:

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.


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