Three exciting updates!
- I'm going to start tracking my passive income. This is my first update.
- Get a preview of how you compare to others in terms of wealth and savings rate
- A project to make an aggregate glimpse of Europe's FI-bloggers
The Wealthy Finn's passive income
WAAAaaa, my passive income is declining! π±
Tracking passive income is a bit unusual to me. I've always tracked wealth before, but now getting into the international blogosphere I've started to put more focus on sustainable passive income. The above chart shows the first glimpse of it in my case. It is of course pretty obvious that wealth isn't very useful, unless it can do something, like produce returns. (For the same reason, I don't like paying off my mortgage too quickly, as I currently pay 0,35% interest on it. Yes, that is right, a third of a percent interest rate. But that's another story)
As you can see, the chart is going down. Why? Because the previous levels were not sustainable. The gray bars are from a marketplace called Lainaaja, which do not offer buyback guarantees. The result is a phenomenon similar to what Bondora has: interest starts really high, and falls over time as more and more debtors start having trouble paying back. The portfolio has returned about 17% on principal annually before, but is now down to about 7%. The XIRR is 7,2%, but it has a tendency to jump upwards when the late principal is successfully collected.
Am I panicking over it? Of course not. Lainaaja and Bondora similarly have a certain expected long-term return, which is lower than what the early-stage income would seem. Much lower. And that's alright. With Lainaaja I'm still expecting it to climb up to 10%, but even if it stayed at 7%, how could I scoff at that?
Yet, it's definitely not at the level where it ought to be, which is why I'm divesting of Lainaaja, holding on Bondora and investing in buyback guaranteed short-term loans (like Mintos, Swaper and RoboCash for example).
The overall passive income is at close to 1 200 € last month. As I divest my Lainaaja portfolio and re-invest the freed capital elsewhere, I should be able to, theoretically, close in on 1 800 € monthly passive income by summer already. Wouldn't that be grand?
The income split currently is:
| Bondora | 520 € |
| Lainaaja | 496 € |
| Mintos | 156 € |
| total | 1 172 € |
On my way to 3000€, I'm at 39%
1800€/m passive income by June 2019?
To reach a personal short-term goal I'll need 800€/m more passive income by June. I've just rented out half of an apartment that should net me about 250€/m, which leaves 550€/m. With 12% annual interest, which I believe I could possibly get from peer-lending instruments, that would mean 55 000 € more principal invested.As it happens, at the end of last month I made a few new investments, namely 5 000€ in Swaper, 1 000€ in RoboCash and 1 000€ in Grupeer and I still have about 55 000 € Cash. So theoretically I should be able to pull this off.
... except I just got slammed a 10 000 € inheritance tax bill that's due on June. It's cool, nothing I was not expecting, but still, it's going to make 1 800 € tough to accomplish. But, I will try even if it is the last thing I do.
Just now, I opened an account to Envestio, Crowdestor and Twino, just to ensure I have those accounts if I want to diversify more. Something tells me I will be focusing more on Mintos, Swaper and RoboCash for the short term, while I try the other services out. I just want my cash to be invested in short-term loans first, where they can be quickly returned if I need to.
How much is your net worth? π
Ever wondered how much your net worth is? Us bloggers write about sums of hundreds of thousands, but how common are those really? What do average people have? How much do you have compared to let's say for example other readers savings and investment blogs? If you're interested to see, head over to the comparison tool. The tool does not collect personal information.Let me know what else would be interesting to know and I'll see if that can be added. Be sure to bookmark that page, as I will be making additions to it later on!
Aggregating Europe's FI-bloggers
It's not a race. If it was, there would be no point really in it. There'd be just a big bunch of losers watching the inevitable. We all have our different situations and there's always going to be room for new starters and those already closing in on their FI-targets. It's all fine!
However, wouldn't it be interesting to have the big picture of most European FI-bloggers' history in one place? I think it would. And for that reason we're doing a little project that will bring together lots of bloggers. I think you will find that very interesting.
If you are a blogger and would like to partake, send me an email at thewealthyfinn@gmail.com.
That's it for this week. If you haven't yet, this is a great time to subscribe π. Lots of very exciting things coming out this spring, I promise!
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| A sneak peek of what is coming, but I don't want to spoil the surprise with details yet. |
If you are a blogger and would like to partake, send me an email at thewealthyfinn@gmail.com.
That's it for this week. If you haven't yet, this is a great time to subscribe π. Lots of very exciting things coming out this spring, I promise!
