Envestio

Another very interesting month behind and a big step closer towards financial freedom. My first stage goal is 3,000€ in monthly passive pre-tax income, which translates to 2,100€ post-tax. As per my previous post, my monthly expenses are about 2,200€, so the goal doesn't currently completely cover my expenses, but, there is definitely some wiggle room in my budget (ehm. travel) for me to still live very comfortably with what I'm targeting.

Agrikaab

Background of Agrikaab

Agrikaab was founded in 2016 by Mohamed M Jimale, who was born in Somalia and moved to Sweden as a refugee. Having IT skills and ties back home to the nomads of Somalia, he decided to do something to help as drought hit East Africa.

Blaa blaa blaa

Tracking passive income is a bit unusual to me. I've always tracked wealth before, but now getting into the international blogosphere I've started to put more focus on sustainable passive income. The above chart shows the first glimpse of it in my case. It is of course pretty obvious that wealth isn't very useful, unless it can do something, like produce returns. (For the same reason, I don't like paying off my mortgage too quickly, as I currently pay 0,35% interest on it. Yes, that is right, a third of a percent interest rate. But that's another story)

As you can see, the chart is going down. Why? Because the previous levels were not sustainable. The gray bars are from a marketplace called Lainaaja, which do not offer buyback guarantees. The result is a phenomenon similar to what Bondora has: interest starts really high, and falls over time as more and more debtors start having trouble paying back. The portfolio has returned about 17% on principal annually before, but is now down to about 7%. The XIRR is 7,2%, but it has a tendency to jump upwards when the late principal is successfully collected.

Am I panicking over it? Of course not. Lainaaja and Bondora similarly have a certain expected long-term return, which is lower than what the early-stage income would seem. Much lower. And that's alright. With Lainaaja I'm still expecting it to climb up to 10%, but even if it stayed at 7%, how could I scoff at that?
Yet, it's definitely not at the level where it ought to be, which is why I'm divesting of Lainaaja, holding on Bondora and investing in buyback guaranteed short-term loans (like Mintos, Swaper and RoboCash for example).

The overall passive income is at close to 1 200 € last month. As I divest my Lainaaja portfolio and re-invest the freed capital elsewhere, I should be able to, theoretically, close in on 1 800 € monthly passive income by summer already. Wouldn't that be grand?