Hi, I’m Marian, a mid-thirties guy from Germany. I’ve spent the better part of my life studying, traveling, doing sports and then studying some more and basically lived from my hand to my mouth. Good times that I don’t want to miss and that hopefully will never stop entirely.
I started to work some years ago and am now in the lucky position of being able to put aside a good chunk of money every month. After a long time of not really caring about what to do with the money I put aside, I started to take an active interest in various investment opportunities about 3 years ago.
Since then, my savings generate more and more passive income and my long term goal is to become financially independent and to be able to live from the income that my investments produce. It will take a while, that’s clear, but already now I have about 10% additional monthly income compared with my normal job. That’s a 10% raise without lifting a finger. I like it.
Financial matters always struck me as cumbersome, tedious and actually as pretty pointless due to the low interest rates that the banks offer and the unpredictability of the stock market. Now, I’m watching my portfolio grow every month and what started as a few dozen Euros profit per month will grow into a thousand Euros per month over time.
Being financially independent through passive income can mean different things to different people. It can be a luxurious vacation once a year, an investment portfolio for your children or the dream of not having to work anymore.
Whatever it might mean to you, it’s important to understand that it is possible.
So, I think the point of writing this blog is to show how I invest my savings and to share ideas.
The internet is opening up more and more possibilities for us to invest into personal and business loans through crowdinvesting, p2p credits (crowdlending) and similar financial transactions. Nothing is without risk and there can be losses and failed investments along this way. I do believe that the key to minimizing these risks is to share information and to learn from your own experience and from the experience of others.
For transparency’s sake let me state that I am not involved or partnered with any of the investment platforms that I present here. I do not receive any money from them for writing reviews or investment tips.
The links to the marketplaces that I post here on my blog are affiliate links whenever available. This means that I will get a bonus if you open an active account by using these links. Also, you will get a bonus on your investments, either some starting capital or a percentage of your invested money, depending on the platform. You’ll find more information about these bonuses in the respective marketplace review.
Why crowdlending and crowdinvesting?
Since there is some level of risk to any investment that you’ll make I won’t and don’t want to tell you what to do with your money. Instead, let me just lay out my thoughts and my reasons why I started to invest in crowdlending and crowd investment opportunities.
As a result of the financial crisis in 2008, interest rates have dropped to zero or even below in many financial markets around the world. In the EU, where I live, the base rate is basically stagnant at around 0% whereas the inflation rate is now at about 2% in the Euro zone. Most banks offer you an abysmal 0.1% interest on your savings. This means, that the pure number of Euros that I own stays more or less constant (at 0.1% interest, 1000 Euros will have turned into 1001 Euros after a year) while the actual value, as in purchasing power, has decreased by almost 2% (980 Euros in my example). Effectively, I keep losing money if I leave my savings at the bank as one Euro is worth less and less in terms of products and services that I can buy with it.
As a part of the recent fintech boom, more and more financial service providers emerged which provide services that have so far been almost exclusively provided by banks, e.g. giving loans to private persons and to businesses. These peer-to-peer and crowd investment platforms take the bank out of the equation and let people like you and me participate directly in such loans and receive interest in return. Like with all new and unknown things there is a natural concern about the risk and I guess we think of banks as safe since they have been around a for long time and because they have an actual physical street address instead of just an internet address. Needless to say, banks can also be fraudulent as many people unfortunately had to experience during the last financial crisis. Regarding the emerging fintech companies, it is important to note that this is not an uncontrolled market but that these companies also have to fulfil a legal framework and are subject to legislative control as for example in the Retail Investors Protection Act in Germany and similar regulations in other EU countries. The EU Commission itself runs a European Crowdfunding Expert Group Forum which develops regulatory strategies for the fintech world. As most European p2p and crowd investment platforms emerge in EU member states (mostly in Latvia and Estonia) they are subject to these EU regulations.
So, with this information in my head I decided to take charge of my investments and started to move a good part of my savings to various investment platforms back in 2017. It’s been a very positive experience so far and it’s just a pleasure to see my return on investment coming in day by day.
The fintech sector is booming with new investment platforms opening up all the time. The number of investors and the available investment volumes are equally rising quickly and I think that we’re just seeing the start of it. I’ll describe the different platforms that I’m using and my strategies to minimize my risk in separate articles.