A year on Lending Loop!

I am rewriting this post because I already wrote it and it disappeared into the bowels of the internets. So. 🙂

I opened an account with Lending Loop in December 2016 and made my first deposit on December 28th. 

I LOVE the idea of Lending Loop and so far I LOVE the execution of Lending Loop. As a past and current small business owner I know how hard it can be to obtain reasonably priced financing through conventional methods and fully understand that there is a market for P2P lending. Do I believe that debt is a necessity? No, is it useful? Yes.

Consequently I’ve made investments  in a variety of businesses, from $25 up to $325 depending on the risk band and company information provided and scoured off the internet. Most of the loans are in between those two numbers.

I earned $91.64 with Lending Loop this year and made deposits to a total of $2,936.33 and investments throughout the year. If you translate this in hours I spent on reading and learning and thinking about the whole thing… that’s definitely less than minimum wage but as I invest more that will go up. 🙂

The majority; 41% of my investments are A’s, 35% B/B+ and the remainder divided between C (more heavily) and D, the least. I do not intend to make any further investments in D-rated loans or riskier. It’s not my style, I’m uncomfortable with it and so here we are. I aim to keep my gross yield hovering around 10%, which after somewhere around 25% tax should net, haha obviously… 7.5%, not accounting for any delinquencies of which there were none this year! I do expect to get stuck with some next year.

I intend to deposit a further $2,000 to lending loop next week and will invest it gradually through the year as I have this year.

I’m very excited about it!

Goals and budget for 2017

Goals, shmoals. Didn’t set any this year because life was just chaos. I moved three times this year! I sold my house! I didn’t write about it because it felt so surreal for a while. It was about 6 weeks to close the deal, I moved. Yadda yadda, I’m alive, hey! Lets start with income;

My main job’s contract was renewed until December 2017, there will not be a pay increase which kinda sucks but I expect my net income to reliable be $24,352.44 for the year, which breaks down to $2,029.37/month (26 pays divided by 12).

Life has become a lot easier now that I am renting a one-bedroom apartment and no longer have to worry about paying the mortgage, electric expenses, renovation expenses and all the other “hassle” that comes with owning a house are all over with for now. No snowremoval to worry about… I just pay rent and that’s it! My rent includes internet and heat/electric so it’s just one nice round-ish number. It’s a nice change after 8 years of going at it alone trying to fix up an old house. I would NOT buy a house again by myself so for now I’m just saving for the future. 🙂 *o*

I’m setting goals right now for 2017. I started with doing a new monthly budget, things always vary but it helps to plan ahead and I’ll set up my monthly savings contributions accordingly.

My monthly anticipated expenses:

Rent: 450.00
Groceries: $175.00
Life insurance: $11.61
Clothing/misc: $40.00
gifts: $20.00
Blow money: $100.00
Health/Medical: $40.00
Car ins: $37.84
Copper (food/toys): $50.00

Total: $924.45 pre-savings (under 1,000, ha!)
Most of my other car expenses are deductible so I don’t count them in my personal budget. I have NO extra health insurance besides the basic provincial healthcare. I have NO disability insurance etc.

Left for savings transfers $1,104.92 = 54% of my net income! 🙂
I have completely ignored any travel expenses as all my travel is financed by a cottage cleaning job I have been taking on every summer for the past few years. It pays for every penny I spend on travel and that’s essentially why I do it! Out of my normal pay I’ll be budgeting my goals. I do have another third stream of income through renting out tourism properties for owners, which earns me another couple of thousand per year. I usually allocate this money to wherever it’s needed. This year I’ll plan to throw it completely at my vehicle savings, though I won’t count it here.

Total amount of regular income to be distributed: $13,259.04

RSP/TFSA: $448.14/month. $5,377.68 for the year.

House: $156.78/month
I set the goal for the year at $1881.28. I have some savings set aside for a future house and would like to round off the number by the end of the year!

Vehicle: $500/month will set me at $7,209.16 at December 2017 excluding any interest bits. This is only 60% of the $12,000 minimum I want/need to purchase a new vehicle. Assuming I’ll earn $2,000 with my seasonal job I’ll be at $9,209. I hope to make up the shortfall here by finding part-time employment, $2,800 in extra work shouldn’t be that hard to find… right? Categories where I may be able to scrimp are groceries, blow money and clothing. This will vary month to month.

As you can see, continuing to save for a future home and replacing my vehicle is still quite difficult on my income. I’m not really sure how I should handle this. Ideally I’ll be able to find supplemental income, which, since I won’t need it to live off, can be used entirely to siphon into my RSP’s/investments.

I set up the new goals in the widget bar on the side, let’s see how it goes!

My studentloan; The final frontier!

Sorry for the lack of blog-updates these past two weeks. Work has been rather crazy and I’ve had a stomach-bug so I haven’t done much besides work and spend a lot of time in bed!

Back to business today though starting with my student loan!

As of today I owe $3,393.41 since beginning to tackle this loan at the beginning of the year when I owed close to $16,000 I’ve made quite a bit of progress while still allowing myself a little bit of fun (um for examples check  here, here, here and here)

It’s time to make a plan to get rid of this beast once and for all so this is what I’m going to do.

1. This week: On Friday I plan to make a payment of $1,114.76 and I will owe $2,218.65

2. A payment plan; Since the holidays are coming up and I haven’t bought any of my gifts yet I’m planning a little bit more conservative for the month of December;

December: $600 payment ($1,618.65 left)
January: $900 payment ($718.65 left)
February: $718.65 or whatever is left!

This means that at the very latest I will have my student loan paid off IN FULL by March 1st, and really that’s only 3 months and a week orso away. You’ll see that I didn’t account for any interest on the loan, it’s not a huge amount since it’s only 4% so I neglected to include that and it should make very little difference in the timeframe I’ve picked out.

So how about you, how are you doing, still managing to keep the debtsnowball going with all these (expensive!) holidays coming up?