What can make a person miss family events, dinner dates or catch-ups with friends? Probably a lot of things, but in many cases work tend to be the reason. It is not uncommon that people misses or cancels things because something urgent came up at work. The question is if all these cancellations are a result of people loving their job so much that they prioritize it over family and friends, if it is people that are too dutiful to say no or if it is a result of an addiction to something as simple as earning a lot of money?
Do you remember our recent post “There is no free lunch” and how we have learned that if something looks too good to be true, then it IS too good to be true?
When it comes to investing in p2p loans, and especially those with buyback guarantee, we have a bit of the same feeling. We are very curious about the product, but we are at the same time looking for the catch in what we immediately think is too good to be true (loans with a high return and promised buy-back guarantee?!). After researching the product for some time we have chosen to give it a shot and as you could read in our last portfolio update (Portfolio update – April 2018) we have now invested 10.000 DKK (USD 1.600) in p2p loans via the platform Mintos.
Renting out houses and apartments has been around for ages, so this should be no extraordinary investment. Innovation within the accommodation industry has been limited over the years where renting out “empty” apartments/houses on a monthly basis has been the dominant business model. If you wanted a shorter stay you would look for a hotel room or a hostel.
But bim bam boom! A unicorn appeared – AirBnB! It shook up the industry and created opportunities for the happy treasure hunters!
To save up or borrow? This question is essential when talking about how your net worth will develop the coming years.
We both believe in saving up to buy the things we want rather than borrowing. And why so? Our main reason is the total cost. Things get way more expensive when you choose to borrow the money AND your future disposable income will be lower (not forever – we know). This starts an evil circle towards borrowing more money, because it then takes even longer to save up again. Therefore we find it more attractive to save up for the things we want in advance, even though we sometimes have to wait longer to get it.
Do you know that feeling where you feel really good about something but then you find out that all the others are better off and then you feel a little bit down even though you were perfectly happy before? Thats is how we feel right now after running the numbers at the end of April. We knew our returns were good, but apparently the market was better. Well you can’t win every time..
Even though the indexes jumped ahead of us, it is funny to see how closely the three different collections of stocks developed. This just proves how correlated the financial markets are.