Tuesday 25th June 2019
Michael gives a brief history of the peer to peer lending industry in Europe and explains why p2p lending is a good asset class. He recommends a p2p lender in Europe and explains how to get started in peer to peer lending.
Read the article below for the Marco Schwartz Youtube video on how to get started with Mintos.
I recently wrote about how investing isn’t scary. If you’re still nervous about getting into the investing world, then I would suggest reading that article before this one.
If you’re ready to start investing, let’s talk about what your first investment should be.
Taking your first step into the investing world isn’t going to be as difficult as you might think. I can appreciate that some of the asset classes I invest in are high risk - especially investing in forex trading and businesses. However, I offset this risk through my forestry and peer-to-peer investments.
If you’re just starting out, I would definitely recommend the peer-to-peer investing world as a great place to start. Taking your first steps in the investment world with forex trading isn’t something I would recommend for the faint hearted - getting started with peer-to-peer lending is much easier.
What I would suggest, is that you look to invest €100. €100 is the sort of amount that most people could afford to lose, but it is enough to see the potential when you initially invest it within peer-to-peer lending.
Our initial goal is to see if we can turn that €100 into €112 within 12 months. In other words, we are going to try to get a 12% annual return on that money.
If you’re used to bank deposit interest rates, a 12% return might sound really high. This article is going to show you that it isn’t as difficult as you might think.
Mintos is by far the biggest name of those three and has loans available offering a return of between 10 to 12%.
Grupeer is the second largest name, and has loans available with a return of between 12 and 15%.
Envestio are slightly different, as their loans are for real estate development and business loans. These interest rates vary from between 11 and 22%.
My suggestion to anyone making their first €100 who is looking to get a return of 12%, is to start with Mintos.
When I first started looking into peer-to-peer lending in early 2018, I found Marco Schwartz. Marco has around €200,000 invested in peer-to-peer platforms, and is a great resource when it comes to finding safe and solid peer-to-peer lending platforms.
Marco takes the time to test and review many platforms, and has uploaded a great video on YouTube about how to get started on Mintos.
I would suggest taking a few minutes to watch his video below:
So, what is the plan? Simply take the following steps to make your first peer-to-peer lending investment:
2. Follow the instructions and deposit your €100. It may take a day or two to be credited to Mintos.
3. Once credited, login and follow Marco’s instructions on how to set up the auto invest. Make sure that you set your interest rate to be from 12%.
4. Select the timeframe - I would suggest keeping this to under 24 months for your initial investment.
If you followed the four steps above, well done! You have done the hardest part which is simply to get started.
What you should start thinking about now, is how can you start making regular investments. Could you start investing €100 a month? Or even better, €100 a week?
Investing is about forming a habit more than anything else. After all, an extra €12 a year may not seem like much, but imagine if you had €10,000 invested - suddenly that’s an additional €1,200 a year (before tax) of passive income in your pocket.
The ability for your investment to scale is one of the most exciting aspects of investing, and it’s what makes it addictive. By making your first investment, your investing journey can begin!