Thursday, 26 October 2017

Peer To Peer lending for Canadians: Lending Loop

Hi All, 
I am always looking for ideas to invest money. I saw there are peer to peer lending opportunities in United States. But, there is nothing for Canadians.Just recently, I found an online lending platform, just for Canadians: The Lending Loop

Lending Loop is an online platform, lending money to small businesses. It is a secure site. The investors can start with $200 initial investment. 

Since I am interested in only the investing part of the Lending Loop, I didn't dig much into the criteria for the businesses to apply for the loan. 

The $200 to start is really interesting part to me. You can transfer money from your bank by filling out the form and giving your banking information. The site is really easy to navigate. Once your account is verified, you can transfer money. 

Next step is finding the lender. You can go the market place and go through the information. If you have questions for the lender, you can ask and the lender will give you answers. Once you figure out whom you want to lend, it is very easy to lend. Then the website will generate a "note" for you. The minimum amount you can give to one company is $25. The lending amount has to be multiples of 25. I started by giving $25 for different companies. 

The interest is paid with an annual interest rate and I get interest every month. There is a fee for investors, but that is collected when we get paid. 

The website has features to add monthly investments, and auto lending. I haven't started using them yet. My research shows that lending loop has done all the necessary regulation process for the federal and provincial governments. So I don't worry much about company swallowing my hard earned money.  

You have now the option to refer and earn. When your referred some one and they lend $1500 , you can get $25. Sounds good, right?  

Oh, one more thing, they will issue a T5 so that you can file your taxes. Interest earned is taxable income in Canada. Right now, I can't find an option to hold it in your RRSP or TFSA. 

So, what you think of Lending Loop? Already started using it or going to give a little thought?

As a side note, I am not getting paid for this post.  I am not a professional to give advise on investing. Make sure you do your own research. 

Tuesday, 17 October 2017

What happens when you start thinking about money

Hi All,
I started this blog in 2016. Before that, hubs and I were working and just paying bills. We were putting little bit of money for the future. That part was all done by professionals. We just listened to an "expert" and started a putting money in to some sort of mutual funds. We were not paying any attention to the fees or growth of investments. The bills were getting paid and food was on the table. We were not accumulating any debts though. 

Then my hubs company started downsizing. and he lost job. Our family became a real lower income one for three months.(I was working only part-time then) It was the real eye opener for us. I started working out more. But money was still tight. We needed to make big changes.

While searching for frugal ideas, I came across Mustachian Principles. Discovered the all idea of FIRE, DIY investments etc. So, last year, I started taking care of our investments. 

When hubs got a new job, we didn't changed the life style. Every month, I put money in to our RRSPs and TFSAs.

 At first, I was thinking of stock investment as "buy low and sell high" only. I didn't know anything about passive income and side hustling at all. Thanks to all the FIRE bloggers out there: I learned all those things in a short time. I started investing on ETFs as the Canadian Couch Potato mentioned. 

But, my investments are with one of the big banks. So, each stock purchase costs money. Some financial bloggers were talking about DRIPing. The bank helped with the dividend re-investing program. 

Later I started more in to dividend investing: Thanks to My Own Advisor. He shared a blog post with his idea of making his own ETF by choosing stocks by himself. 

With all this knowledge, I began to see my job through new glasses. It is no longer the work I have to do, but it is a source of income! That also means I started looking at my job as my business. The employer is my client. As a result, I got pay rises. So, I got more confident in myself. With that, I demanded better treatment and better pay from my work places. My hourly wages has gone up over $6 comparing to 2015. As a result, I have more money to save and invest comparing to last year. 

Since the income went up, I asked my mortgage company to increase my mortgage payments. That way, the debt will be paid off faster. 

When I started thinking about money, my cash flow went up. Life became more enjoyable and richer. 

What happened to you when you started thinking about money? Please share in the comments.

Thursday, 12 October 2017

This weeks efforts for financial independence

Hi All,
Last weekend was thanksgiving weekend for Canada. That also means, this week is short work week. 

Long weekends are always more expensive. Last one was not an exception. Even though we didn't buy turkey, we spent money on food and alcohol. But, there was no take out except the pumpkin pie.  we bought this big pie from Costco for $5.99. It was delicious! 

I worked few extra hours and that is going to bring few bucks in. Yes, the regular frugal things, like hanging the laundry and packing lunch from home etc are continuing. 

Since we had company over the weekend, we made a lot of food. So, still there is lot of left over in the fridge.

I am still looking for other passive investment ideas. Some American blogs are talking about peer to peer lending. Not many in Canada though. Another one is solar bond. I don't understand why they charge $40 membership fee. The website says the bonds can be held in TFSA or RRSP. 
What do you guys think about the solar bond? Will you invest in such co-op opportunities? 

Tuesday, 3 October 2017

September 2017 Passive Income

Hi All,
October has begun. Canadian Thanksgiving is around the corner. 
I want to take a look how my passive income was doing.
I bought more shares of BCE last month. I also added some healthcare shares to my portfolio in September. 

Now let us see how much I earned in dividends. With 2 RRSPs and TFSAs and one non registered account, our total dividend income was $211.53. 
It is still less than that of August 2017, but more than that of September 2016 ($130).

I am hoping to receive more dividend income in next year though.

How was your dividend income/ passive income for September?

Courses to be a Millionaire

Hi all,
Have you ever dreamed of becoming a millionaire? Having enough money to pay for all the bills. Then there are assets that continue to generate income, while you are doing the things you really love?

Think that you just given a correct formula for success, and you are following it. That will be really nice. 
While we were just starting out school, our parents told us to study really well, work hard to earn good marks and go to college to find a job to make money. We just followed that advice only to discover that is not the way to riches.

Now, think of a college course which is going to teach you to be a millionaire!
I just wish, if there is something like that... 

In reality, many college dropouts are changing the world. The ones with academic excellence are working for the college dropouts.

We know Microsoft, Apple, Facebook etc. All those started with the vision of their founders. They acted upon their vision. Ordinary people were chasing the dreams while those successful people were working out on their ideas. 

Recently I found a book at the library: "The education of the Millionaires" by Michael Ellsberg. I was intrigued by the title. In this book he tells that colleges are not teaching us to be rich. They teach us to be law obeying workers. 
I was thinking, but, we need doctors, engineers nurses and teachers. The education system creates all of those professionals. But, they are not creating successful entrepreneurs, according to the author. 

Can it be true? 

I found that Canadian universities are giving a lot of opportunities for budding entrepreneurs. While Peter Thiel of PayPal gives $100,000 for students to get out of school and to start business, Michael Baum gives same amount for students to stay in school and  start business. 

Michael Ellsberg's book is very interesting to read. He did interview a lot of successful college dropouts for this book. Ellsberg shows how building your own brand and mastering the art of bootstrapping helped many people to be millionaires. 

I think, a university degree in the right filed can still help you to find a niche for you. Not every college dropout can become a great entrepreneur. Not every university graduate will be poor either. 

What is your thoughts? How you made your fortune in this world? What kind of advice you will give to 18 year olds who just finished high school?