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Monday, September 23, 2013

Lending Club SnowBall

So the founds were post to my account as they stated on the 19th. (around 2pm)

I immediately hunted down loans using their quick options in the High risk range. I saw 40 loans applied for and ordered. Later that day I so one loan fall by the way side and 25$ was put back in to my available funds for me to try again. I posted another.


So over the weekend I noticed something pretty interesting. I was earning interest on my account balance. which is cool. Although it was only .01 it was better then nothing. So I saw that on Saturday and then another on Sunday.So I have .02 extra cents in the account now.

On Friday night I saw one loan get issued and another 1 on Saturday. So far today I have 6 more issued. Looking forward to more loans getting issued.

So I learned over the week:

  1. Loans have three states in the beginning. one is "InFunding" This is where the loans are waiting to reach full funding by the investors. 
  2. The second is "InReview" the Loan Borrower is in review. Credit appl is looked over and stuff like that, in more detail.
  3. The third is "Issued" and the loan is sent to the borrower and the payments are set in place.
  4. You earn interest seemingly everyday on the moneys you have in the account. 
  5. The the loan falls threw you get your money put back into your account to be reinvested again.
  6. This is also a daily task that seems to be one that is going to be like checking you email on you cell phone all the time to make sure all your loans take off in the beginning.Otherwise your money just sits that and does nothing for you.
If you are also interested in getting started with lending club. Just shoot me a message and I can get you hooked up with $25 extra for you to invest.

Monday, September 16, 2013

Lending Club Start Investing in Others

So I came across Lending Club a few days ago as an option for getting a loan as a much easier and lower cost than trying to go through a traditional bank.

It was on a radio show that I heard about this type of lending for Lending Club and other similar companies. So I quickly wrote it down to look them up when I had the next available chance.

Break time:

I only had a few minutes of free time. I then pulled up the site to lending club and for shits and grins I plugged in my information and did a quick loan consolidation work up for 35,000. And after a few simple questions I think there were only 5 questions total. I was looking at a pre-approval and different level of the same loan I was asking for and different interest rates. Everything from 8~% to 21% to me seemed pretty high. But then I looked at just one of my credit cards that I have had for a few years now and the interest rate on that card and how many times I have said "I'm going to pay this thing off..." And that day never came. With a set time to your loan, you are more likely to have it paid in full, better than just having a revolving credit card.

So without accepting that loan I got to thinking. And then in just a single click I started looking at the investing side of the house and how it works. I was also finding myself opening other tabs to see what others were seeing, and saying about lending club and others of the like. I searched for the company’s history and also did a search for "Scam" to see if I could see what the real risks are to investing with these types of fairly new and young companies.

So what where the results of my research?

I found that people had their complaints, but their complaints did seem valid to me. Some of these people seemed to me unknowledgeable to investing or people that didn't understand that there is a potential of risk and loss. So I started looking over video after video of investing in P2P lending to see what others and other companies where saying.

After looking at all the information I could find at the time. I found that instead of being scared and afraid of invest my money; I found that I was getting more and more eager to get started. I started talking to my wife and introduced her to the idea of P2P and how we can be on the reserving end of the interest and make of money with minimum risk but still knowing that there is risk. But at least make more in interest then our little 0.10%APR interest that I was earning on our saving with our bank. Even if I make 2% APR, I believe it would make me happy. Granted that this it's what the company is advertising. In fact people that claim to be honest about what they are making are posting on their blogs they are looking at returns in the range of 12%-15%.

So I think those numbers look really good. I could possible make that... well maybe. But it is better for me to except a lower return and get a higher return. Then to Shot high and totally miss. 
So that I am happy and not worried of pissed if I miss my mark.
I got the green light from the spouse. I filled out the investment account information and got the first part of the account information setup and after about a day and a half I had my account approved and verified and I then setup a $1000 fund transfer on Friday afternoon to start the fun.

So according to their email the funds should be available by 9/19/2013. In the mean time I have been looking over the loans that I would be interested in funding to get the investments rolling.

Friday, September 13, 2013

Eat your elephant or no dessert for you...

Another day in the books. Making strides today in the path to financial freedom.

So what are theses "strides"? Glad you asked.

These are my Short term goals at this point. (one year or less)

  1. Opened a Lending Club investment account. In all not set to transfer a small amount ($1000) to fund this account to get the ball rolling. 
  2. My Goal is to earn at least 4%APR in the lending P2P. 
  3. My is to have a balance of $5000 in this account to invest in the next 6 months. 
  4. Setup and automatic deposit to accrue every month of $250 every month to grow the account.
  5. Another goal is to do a debt consolidation loan to eliminate the credit card debt which is currently at $18500~(I'm not seating directly in front of my numbers at the moment. 
Med-range goals (2 or 5 year goals)

  1. My goal is to be debt free before the end of 2018 this includes the following debts. 
  • Car#1 Loan $18,000 
  • Car#2 Loan $17,000 
  • Bike#1 Loan $13,000 
  • Bike#2 Loan $8,000
  • Credit Card#1 $2,500 
  • Credit Card#2 $16,000 
  • Student Loans $56,000
  • Home improvement 0% loans $6000 
  • Home improvement 0% loans $6000
Total~$142,500 of debts

What it doesn't include is the House

  • House Mortgage $190,000
 This sounds like a huge goals. And they are when you look at the Total. Just ponder this that I once heard.

Kids and adults were asked if they had to eat an entire elephant, how would you do it?
What do you think the answers were?
The adults stated that it was not possible to eat an entire elephant its just too much to consume.
The kids answered one bite as a time. One piece at a time. until it was all gone.

So that is what I want you to get from this is that all goals (realistic) can be achieved one bite at a time.

So after listen to a few of my favorite radio personalities I began to think a little more wisely about money and I also bought an audio book or two and really enjoyed this concept that all debt can be paid in full and that you can be debt free in relatively a short matter of time. Just follow a few simple rules or steps.

Rule #1: starting with the Highest interest rate loan look for the debt that is the smallest amount.
Rule #2: Pay all your debts at just the minimum amount due.
Rule #3: Pay that smallest debt's minimum due and add a little more to be applied to the principle balance. which should be at least double the minimum payment. (IE: if you payment is 20, pay your 20 and then pay and additional 40 towards the principle)
Rule #4: Once that debt is paid in full and closed move to the next debt but this time take the previous 20+40 and roll that into the next debt. And repeat rule #3.
Rule #5: This really should be your first rule: build an emergency fund. 6 times your monthly income.

There are more rules but if you follow these few steps you will be debt free. it may take you a few years. But stay focused.

This Rule#5 is number 5 for me on purpose because I want to be debt free faster. This might now be the best and wisest thing. But that is what I am doing. it might now work for you or be safe.

My longer term goal (10+ years)

  1. Build my invests to the highest level to replace my current income and allow for me to retire sooner and enjoy more of the finer things in life with little to now effort. 
  2. Continue to build my 401k till retirement
  3. Start other investment accounts
  4. Pay off the Mortgage and purchase rental property.
  5. pay cash for a brand new Tesla 
  6. Pay cash for all things wanted
  7. Pay cash for a new Primary residence to my own design.
  8. There are more... But this is go enough for now.
Granted all of these goals need to be better detailed and defined.

I would be interested in hearing from you. I am also open to correction and always looking to expand my knowledge. So use the comments on the blog to share your thoughts.

Thursday, September 12, 2013

Everything Must have a beginning

I suppose that if you have landed your self on my blog you are looking for information on Life, finance, goals, prosperity, freedom.

Well let me tell you this from the start, you are on the right page. This blog will encompass my victories and my struggles to make it to and through my personal goals as well as the goals of my family.

To give you a little bit of information about who I am and what my back ground is. I am a 33 year old man married to a beautiful woman and we together have a Handsome young man who is currently 3 years old.

I am a military brat, I also served my country in the military as well. So I have moved around a lot and have experienced different cultures and different environments and people. Keeping long term friends was a huge challenge and still to this day is a struggle as I can honestly say I only have a handful of good friends.

So, why am I telling you all of this? Well, I think that it is important that you know who I am and where I come from. What my life experiences have been thus far and what i have learned from. I have a ton of investment story's and have seen tons of small wins and have seen huge losses from my parents during my life time.

Everyone has a story to tell, and many of you will be able to relate to mine as well. I just want us (You and I) to be on a similar page.

Okay so a little bit more about me...
As I stated before I am a military brat. I was born in North Carolina and I am the oldest of three children. My father was in the military and therefore with that came a ton of travel and moving around. I have lived in Germany, Michigan, North Carolina, South Carolina, Texas. My father served 18+ years and then retired.

During that time I had changed schools 8 times up threw high school and have zero childhood friends to account for it. So being the oldest I had my Parents and younger brother and sister to play with, cry with and fight with. My father was and still is the man that I still look up to. He is an entrepreneur, he has been trying his entire life to find that one niche that will take him from rags to riches. I have seen him go threw try so many different businesses. All of them you can think of like, Amway, IGN calling cards, Web Design, Insurance, military advice, home care - lawn care, Health supplements, online store sales, car sells, fuel additives, and more. All of these things promised income and stability or residual income. But the honest truth is that some worked for a little while but all failed. In fact one failed so bad that my parents lost it all back in 2002 and still to this day are still struggling to survive in their new business venture.

I must say that I have learned a lot from their failures and I know exactly what not to get involved in. I know exactly what smells like a rat and what will fail or succeed. I personal will never ever get involved in anything that looks like or smells like a pyramid scheme.

There is ton more about my history and over time I will share more. But for now I think that this is a good start. Stay tuned and in the next posting I will be going over my current financial situations and goals.