Hello everyone! It’s that time of year again, where we are all recovering from the holiday season energy-wise and financially as well. I hope that everyone had a wonderful time celebrating their respective holidays and traditions, as did I! Now for the nitty gritty: what are you going to do to make back the money you spent on the holidays…that can be quite daunting!
Personally, I have several options in mind, 3 of which I am actively engaged in. I’ve told you about Prosper and how you can be your own bank, but what if you don’t have the money to put up to start an account? Well, luckily enough, the online world is buzzing with opportunities to make money in ways many people never dreamed of, whether it’s a few bucks or an entire income.
Option #1: Put that iPhone to good use (other than beating all of the levels of gummy drop, that is, lol). Many folks are making a side income by becoming couriers. At this point delivery services like Instacart, Postmates, Seamless, etc., are so popular and in such high demand that you can literally apply right from your phone, and sign up in minutes. I decided to try this and I signed up with Postmates just to make a few dollars on the side. I’ve only done a few deliveries so far (I usually do one or two after work a couple of times per week), and that has helped solve the post gift buying blues by adding to my bottom line little by little, without much extra effort. It won’t buy me a shiny, new apartment, but it’s helping with the occasional bill, and I certainly appreciate that! Depending on the order size, I’ve averaged about $7-12 dollars per order, and you can do multiple orders at the same time. Different companies have different requirements to be a courier, but with Postmates you can be a walker, a bicyclist, or a driver! Check it out here, click on the link below, and give it a shot if you’d like to make a few dollars and get some exercise at the same time. Plus, you could make money and save it up to invest in Prosper, and then your small earnings turn into more without doing more work! https://fleet.postmates.com/
Unfortunately, my computer battery is now telling me that I have to go…but stay tuned here for more info about my other two ideas as well…Ciao for now and happy reading!
While researching different p2p (peer to peer) lending platforms, I learned that the two most popular and mainstream options are Lending Club and Prosper. They have similar set-ups and goals, but they certainly differ in their requirements to be a lender. They’re both great, it just depends on how much money that you have to start off with. Lending Club requires a starting amount of $1,000.00. That also means that you could start to make a decent monthly return (don’t forget that return includes BOTH principal payment and interest together, not just interest). My financial situation does not allow for me to have a free $1,000.00 hanging around…yet. I’ll get there eventually. Patience is key in the financial improvement world when you have little to start with. In comes Prosper. Honestly, I know more about Prosper than Lending Club simply because I am able to invest with them. Prosper only requires a first deposit of $25 and the minimum to invest in a loan is $25.
So yay! You’ve ready to invest your first $25 into a loan! Where do you start? What’s your game-plan going to be? Don’t know yet? Neither did I, and I’m still learning and growing. Bear in mind this one awesome detail: you don’t have to fun an entire loan by yourself (and in my opinion you probably shouldn’t). You can put in as little as $25 per loan. These loans are funded by a large group of investors, not just one, so it’s less risky if you invest in many loans with smaller amounts, than one loan with a larger amount. How do you choose which ones to invest in? It’s tempting when you get on the list of available loans and you see that D grade loan with a 23% interest rate that looks so attractive…soooooo attractive. Then you see the A grade loan next to it that looks…not quite as attractive. You think to yourself: really? 7%? Ugh. But there’s something important about the difference between these two loans and it’s a huge deal when you can’t afford to lose any money. As attractive as that high interest loan might seem…it may not be the best option for you…or it could the be that the A grade loan isn’t right. I’ll tell you why.
When Prosper vets’ borrowers they have a multi-step process. Borrowers enter information about their finances including their income, what the loan is for, etc. Prosper also tells the individuals funding the loan valuable information that could sway an investor one way or another. Prosper rates each loan based on historical statistics of loans of its kind. The ratings go from 1-11, with 11 being the more secure loan to invest in, and 1 being the riskiest (according to Prospers algorithm). Personally, I know that people make mistakes just like I have, so I give a little wiggle room when it comes to the grade and I generally accept 7 or higher. I think about it like this: on paper I did not look that great in the past, but I’d not default on paying a private loan to anyone, as I know that people work very hard for their money just like me. Therefore, I know that Prospers number grade may not encompass the entirety of that borrower. Even with their advanced systems they can’t avoid a borrower who may default on their loan who may have a great numbered grade. It’s unfortunate, but it’s true. Then I look further because I need more info to decide, but Prospers grade is a good starting point. I’ll let that info sink in for now.
I know it’s a whole world of financial possibility that I’ve introduced you to, and we’ll talk about the next steps in my consequent posts. Remember, you can always message me questions and I’ll get back to you asap!
P.S. Also, please remember to consult a certified financial advisor when it comes to the big decisions that you need help with. Although I have knowledge in this area, I would not pretend to be an expert. Happy financial improving! 😊
Sheets. Man, what a weird thing this word made me think, at first! You’d think that the first idea that would’ve come to mind is bed sheets…but no, my weird brain has to come up with sheets of New York City summer rain. I never thought that when I moved to New York City I’d be sent running for the nearest building because of the torrent of water coming from the sky pretty often! When I say torrent, I mean heavy, drenching to the bone, heavy, flood-like rain…quite often. I will say this: there was one time when I was inspired by people who were effected by…your guessed it: the rain. I went to see Troilus and Cressida at Shakespeare in the Park, and the actors continued on in the pouring rain as if nothing had happened. They had to be drenched down to their shoes, but you’d never know it by their acting. I was crazy inspired!
Ingenuity, I love that word! It has such a nice ring to it, and such a deep meaning (at least to me). I view ingenuity as an essential skill in creativity, and creativity/ingenuity an essential skill of surviving in this new, digital age. I find it fascinating that one can create a job or a career for themselves where there was nothing before. In today’s day and age the opportunities for money making are endless. One of my inspirations for this exact thing is Lin-Manuel Miranda, internationally famous composer of Hamilton, In The Heights, and a member of Freestyle Love Supreme (who, I’m sure, has many more credits, both famous and not, to his name).
I’m absolutely enthralled by his tenacity, skill, perseverance, and his genius. He literally put himself on the map in the entertainment world. He created something brilliant using just his brains, skills, experience, and a pencil and paper. Not only that, but it’s given other artists the opportunity to be a part of the beautiful, caring community that he’s created throughout this process. He’s even changing the world and peoples’ lives by using his works to support causes that he cares deeply about. That, to me, is ingenuity. It”s creativity. I could write many, MANY more paragraphs about my admiration for him as an artist and person, but I’ll get to that in a later post because I could write a novel on it with my ability to go off on tangents and daydream (although that is not a bad thing).
With technology we have the tools to create new things every day. Heck, this article is new right now. It is not a masterpiece of an article, but it’s being created now, in the moment, and shared. Nowadays we have all kinds of opportunities for financial success, we just have to use our ingenuity to build on them. For example, in the past we couldn’t write something and automatically earn money within a moments’ notice. Now we can. We couldn’t write a book and have it published on amazon without going through the proper book publishers outside of the company and then selling it…but now we can self-publish books and sell them online. We couldn’t automatically create a video of ourselves performing and broadcast it to the world, thereby gaining fame. Now, we have stars who got their start doing just that on youtube. The opportunities are endless. When you think about it, once you open up your mind and heart to creativity so many ideas can come pouring in, and you just have to work tirelessly at them, with all your passion and heart, to create something that you truly stand by. You don’t even have to create for others. Create for yourself, and your passion, care, tenacity, strength, and genius will shine through and you will find your own success by using inginuity.
Beautiful NYC day on my way out of town!
International Women’s Day is March 8! Join me in celebrating women entrepreneurs around the world. #etsyfearlesswomen https://etsy.me/2tNiKbt
Piggybacking on my last blog entry about how you compartmentalize your money…how do you design your money to work FOR you? There are so many ways you can get the most out of your dollar. I don’t mean to sound like a penny pincher, but how you use your money and where you place it can have a big impact in the long-term on whether it makes money for you or whether it stays the same amount. Think about it: do you really want to continue to trade your time for money for your whole life? Or do you want to put your money to work while you work, or while you’re on vacation, or while you’re at your kids’ baseball game, etc.? I like making money while I sleep. Soooo….that begs the question…how do you do that? There are a multitude of ways!
Banks have designed a system that really works for them. They loan you money or give you credit to use, and you get the assistance you need to pay whatever bill it is that you owe with that money, whether it’s groceries, school loans, you name it. They also must fund their own business, so they make it work for them by giving you the money in return for extra money on top, aka interest. If you’re able to pay your bill back in a super timely manner, the interest you pay would be lower than if you take a long time to pay back the money. Now that’s a smart transaction for them. You get something from them, and they get something from you. They’re making money in their sleep. They’re not spending time working for the interest, but they’re making money regardless. You can use that model, too. You can, in a way, be your own bank! It’s called peer to peer lending.
I had no idea about peer to peer lending until about a year ago. There are many platforms that you can choose from, but the two most popular ones are Lending Club and Prosper. As an investor with peer to peer lending you can log on to the platform and search through the available loans. They are graded in slightly different fashions on each site, but mostly some form of A,B,C,D,E, and HR, with A being the lowest interest rates but the customers with the best concoction of information (credit score, income, percentage of credit used, rating, etc.) and HR being the highest interest, but considered the more risky loans to invest in. In my next blog I will go into more detail about how this process works and what strategy (so far) has worked for me.
This is what I consider designing your money. Instead of simply earning it, you’re creating a system in which your earnings make you more earnings without trading your time. It’s a gradual process, but it’s interesting. I highly encourage you to think about how YOU think about your money, and how you utilize it to its full value. Keep following my blog for more information weekly, and enjoy your day!
Ciao for now, and as always, please consult a certified financial professional for all of your big financial decisions. I’m simply here to enlighten and help, but I’m not a financial advisor.