DISCLAIMER: Links in this post may contain affiliate links. Honesty above all. Please read our disclosure policy here.
We all have goals in life. My goal is to become rich, not just look rich. So, I decided to take matter in my own hands because no one will do it for me.
I quickly learn tricks and techniques from the wealthy, and it makes so much sense now.
One of the oldest ways to earn passive income is lending out money. Just like the banks. Banks give out your hard earned money in loans, they collect monthly payments (interest) and they have no risk since it is not their own money anyways. You see how well they do, don’t you?
How do you become the bank you say? Through LendingClub.
This is how it works. You rent out your money to other people, and the rent you charge is the interest rate. Which will vary depending on how conservative or aggressive you want to be. But now you are the one getting paid! Not the bank.
Instead of having your money sit at a normal bank account and pay more in fees than what you get in interest every year; you collect a diversity of interest.
So, now thanks to technology, you can spread out your risk by lending only $25 to each note. That means if for some odd reason the borrower can’t pay back, you only lose $25. Again, the probabilities are on your side.
Let’s get a little bit deeper now. Let’s say a borrower needs a $25,000 loan.
He or she borrows $25 from 1,000 people; instead of going to just one entity (like a bank or rich person), for the full $25,000 which would be very risky to that one entity.
As you can see, this scenario presents much less risk because the most you could lose is $25.
As you can see, I don’t only write about this opportunities, I’m also invested and can prove it works. I put my money where my mouth is. No empty words here.
Just 15 years ago, this was impossible, but thanks to the internet and it’s wonders, it is very possible in this day and date. The peer-to-peer lending industry, as it’s known, is thriving for borrowers and investors alike.
Note: Currently only residents of the following states may invest in LendingClub notes: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NV, NY, OK, OR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY.
Remember, it’s all about the road to wealth. If you liked it, pay it forward. Share it in social media and help others become successful as well. There is plenty of room for all of us. In the end, your success will only depend on you and not what others do.
If you have any questions, you can reach me at firstname.lastname@example.org