Three ways to start investing with smaller amounts of money – Updates
A lot has happened since I wrote this subject topic last fall, so I decided to update you guys.
P2P lending I have been using the Lending Club as platform for Peer to Peer lending. Personally, I enjoy receiving cash flow in the form of principal repayment + interest from my borrowers throughout the months. Though, once several loans were defaulted, it completely turned me off! I knew all about the risk of defaults before going into this, but I am just not a good loser. I have since stopped reinvesting the money I would make into new notes. I now just withdraw the money and invest it in stocks. Bottom line, P2P lending is a good enough way to invest your money, but keep in mind that there is always a chance people will stop making payments and you will lose your investment.
Stocks via Loyal3 Loyal3 just announced that they will be shifting to Folio First on May 22, 2017. Folio First will be the same as Loyal3 except there will be a $5 monthly maintenance fee. They gave us 3 options: 1) do nothing and wait for your account to transfer automatically, 2) transfer your current shares to another broker, 3) cash out. I had been thinking about switching to this other commission free platform named Robinhood for a while now because there you are able to purchase any stock (versus only a select few with Loyal3.) I am currently in the process of cashing out from Loyal3 and purchasing different stocks on Robinhood. Check back in a few months for a review on Robinhood.
Start your own business or learn a new skill This is the only point that has not changed for me. I still believe in monetizing your skills. After tapping into wine resale, student visa advising, and real estate, I am learning how to sew these days and I cannot wait to see what opportunities will open for me next!
Live Life Fully,