October 2019 Update: Passive income grew to 1,892€


Highlights from past month:
  • Passive income increased to 1,892 €
  • New sustainable investment platform Sun Exchange
  • Stocks are still taking a beating, but that's O.K!
For those who are new, hi! I'm Eelis! I'm glad you're here!

I will be financially independent. I almost feel like I already am. You don't actually need a lot of money to live a good life. With about 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?

It was a superb month for the blog. Monthly unique visitors grew to 5,782 (2,075), which is a  whopping 179% 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 three times now!

Subscribers grew to 297 (119), twitter followers to 1280 (1136). I am pleased! These things tend to compound. I am absolutely thrilled to see such great growth in visitors for a blog that's only 8 months old.

I thank you, dear reader!

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

Income IRR
Bondora 443 € 14%*
Lainaaja 272 € 11%*
Swaper 215 € 12%
Mintos 201 € 13%
Crowdestor 178 € 20%
Envestio 165 € 21%
Agrikaab 113 € 34%**
Robocash 103 € 14%
Dividends 83 € 1%
Grupeer 64 € 13%
Trine 21 € 6%
Fastinvest 11 € 13%
Viainvest 9 € 10%
Peerberry 7 € 10%
Kuetzal 6 € 21%
Bulkestate 0 €
Crowdestate 0 €
Total 1,892 € 15%
* Lainaaja and Bondora will have defaults, this is long-term best guess at the moment
** Agrikaab pays out quarterly

For passive income I'm at 1,892 € for September, which sets me at 63% from my goal (last month 1,792€ / 60%). My crowdlending IRR is almost 15% on the portfolio level. 😎

Goal: 1,892 € / 3 000 € in passive income
63 %


Check out other passive income 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). I'm cleaning the chart up a little for stale content.

Check out the full chart 👇🏻




Invested capital increased by 569 €


This chart contains capital changes last month. Positive numbers is net capital added (including reinvestments) or value appreciation. Negative numbers are net principal paid back / defaulted / deprecated. This includes only capital that got invested.

I've sold stock positions but haven't yet started buying more. I've been lazy.

My crowdlending portfolio was set up 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.


As the pie grows, I notice getting more concerned about diversification than maximising returns. The size of the pie is about 377,000 €, and has come down from last month (384,000). Main reason is selling positions and not re-investing aggressively enough my cash.

A deeper look into the 1,892 € monthly passive income



Passive income increased slightly from 1,792 € last month to 1,892 € (chart excludes stock dividends for technical reasons). Unfortnuately, I need 26,477 post tax to support my current lifestyle. There's still some way to go.

The red dotted line is now the internal rate of return up to that point. That's the best, most stable and honest metric of long-term return rate. It does not however consider any future defaults.

Let's zoom in on the different sources.

Bondora



With still 25,716 € in Bondora, I got 443 € (compared to 474 €) in interest.
The IRR for Bondora is still at 29%, but it's going to drop still heavily as the defaults start to roll in.

If for Bondora I give a 10% discount on the principal (which is a little optimistic) then the IRR drops to 20%. With a more pessimistic 20% discount the IRR sits at 11%.

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


Revenue from Mintos was 201 € (248 €) and IRR sits steadily at 13%.

Invest & Access means I need to re-think my Mintos position. It's still a very steady performer and good for diversification.

I'm down-scaling my Mintos a little and balancing with other platforms. It's still over 15k though. Due to the high supply of capital on Mintos platform, I'm experiencing a bit of cash drag, so figured it's a great moment to diversify on other platforms.

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 reduced slightly to 19,553€. Income was 215 € (compared to 245 €) and IRR sits steadily at 13%.

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

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.

I need to write a proper review on Swaper as it is starting to grow into a big favorite due to its stable progress and returns.

RoboCash


RoboCash accepts deposits up to 10,000 € only, so that's what I did. That has now grown to 10,608 € (10,508 €) and yielded 103 € interest (105 €). IRR is a very comfortable 13%!

RoboCash is a completely hands-off platform. I have a full review on RoboCash too. Please do read it, it's definitely one of my favorite platforms! I haven't had any issues with RoboCash so far, and no cash drag. I'm just sad I can only invest 10,000€ on it.

Grupeer


I now have 6,142 € invested in Grupeer. I got 64 € interest for this. IRR is even 14%!

I have a lot of trust on Grupeer and I think it has a good chance to grow as my top platform. Given that Mintos' rates are falling and also Swaper has a bit of cash drag, I will likely increase my Grupeer balance next.

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

Here's my review on Grupeer - definitely worth getting to know this platform!

Envestio


Invested principal increased back to 10,994 € (10,833 €) on Envestio and I got 165 € interest for it (131 €). IRR is at a steady 21%. The fluctuation in income 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 10,386 € on four different projects, and it yielded me 178 € interest last month. previous. IRR has climbed already up to 20%.

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.

Fast Invest


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

So far I only have 1,020 € invested on Fast Invest. Interest was 11 € and IRR is at a steady 13%.

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, some even 13%. FastInvest is a great one to diversify your portfolio on. Being such a steady performer, I believe I will increase my stake in it.

Kuetzal


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

I increased my stake on Kuetzal to 6,010 €. The interest for last month fell to just 6€ as I'm waiting for the new loans to start producing revenue. The IRR is at a great 21%.

Kuetzal definitely comes with high risk - high reward combo. The rates are phenomenal, but the ones covered with buyback guarantee have collateral too. I will likely increase my stake again soon.

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

Peerberry


Peerberry is another P2P consumer crowdlending platform.

For now I have 1,035 € invested on Peerberry and got 7 € in interest. IRR is at  a decent 10%.

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 1,028 € invested in ViaInvest and got 9 € in interest. IRR for Viainvest is also at 10%.

Agrikaab


I own a camel (Yes, the animal 🐪) in Somalia through Agrikaab. The animal cost me 1,375 and as it lactates, the milk is sold and I get most of the revenue. Quarterly dividends are around 6%-8% and this puts the IRR at this point to 34%.


For those of you interested in reading more about Agrikaab, check out the review I wrote on them. Need a camel for yourself? Buy one on Agrikaab!

I'm waiting for the next project to invest my available cash into on Agrikaab. I think I will expand next to rainwater harvesting ponds.

Trine


First revenue from Trine!

I have 1,000 € invested on Trine in a 7% p.a loan. This was the first month I got revenue from the project, 21 €, which puts the IRR at 6%. It might not reach 7% completely, since after committing it took a little while before the project started and the loan was issued.

Trine is a spectacular sustainable investment crowdlending platform. With my 1,000 € investment I am offsetting 38 tonnes of CO2 while getting a 7% return.

I've covered Trine in a proper review, but if the topic of sustainable investing interests you, please read the post: Sustainable investing: how to profit while healing the planet.

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 decreased slightly from 306€ to 272€. The long-term IRR is now 13% and falling steadily. If I give a 10% discount to the principal - which is reasonable -, it falls to 11%. That's where I anticipate it to land long-term.

Lainaaja is a good example of a platform that issues long loans and doesn't provide buyback returns - it's a waiting game when you want to exit. It's not for everyone, but for me, as long as the IRR stays above 10%, I'm all OK!

Other platforms

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 Sun Exchange, which lets you buy and lease solar cells in South Africa: they get electricity, you get income. Read my Sun Exchange review to learn more and get a free solar cell! 🌞

Income statement

My gross salary is 6,912€, gross passive income was 1,892€ and I managed to land a staggering 2,043€ in blog income. A total of 10,847€. Sadly, I forfeit 2,384€ of my salary to taxes and the like. Probably 60% of blog income, i.e. 1,225€ and 30% of passive income, i.e. 568€. This nets me 6,670€.

My monthly expenses are on average 2,206€ and with those expenses my savings rate from my salary would be 51%, from all active income 58% and from my total net income it's 67%.

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? 😊 👇🏻

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