I learned about peer lending relatively early on in my financial life, as I was looking for ways to hedge against having only one type of investment as well as earn the best possible returns on those investments. Eventually I came across Lending Club and after a fair amount of testing the waters, I now have a substantial portion of my investments held in notes from the platform (more on the terminology briefly). At its simplest, peer lending is a way for individual investors to lend money to individual borrowers with a minimal amount of effort and dealings with middle-men. As an investor, you're given the opportunity to select from thousands of loan applications to partially fund based on basic information supplied by the borrower, such as loan purpose and credit history. Tens or hundreds of other lenders do the same thing, and eventually the loan is funded and all investors receive interest over its lifetime of either 3 or 5 years. Executed properly, peer lending can be an excellent addition to any investment portfolio.
It’s inevitable in life that we’ll run into problems; that we’ll come up against something that we don’t quite have the answer for. A question that doesn’t have an immediate answer. In the rush of our everyday lives it’s easy to fall into the trap of assuming that an answer or solution needs to be accompanied with speed. How many times have you been in a situation and misspoke or made a mistake and given someone the wrong answer and thought that if only you had more time you would have gotten it right or answered differently?
When I first started looking at traditional brokerages, I was disappointed by the fee structures that most of them carried and overwhelmed by the large variety of choices that I was left to analyze and choose from. As a beginner to the world of investing, I wanted something simple and straightforward to get started with, and the fact that I couldn't find such an offering early on led me to delay my entry into investing for several months. That changed when I found Betterment. Betterment is the first service I signed up for on my mission toward financial independence. It's a low-fee, low-complexity brokerage account that's well-suited for beginners and just customizable enough to be a long-term account. If you're looking for an account to get you started, Betterment may be a good option.
It can be so easy to get distracted from our goals these days. The ever-present temptations of binge watching your favorite TV show, video games, sports, news, the latest celebrity gossip, the list goes on and on. One of the quickest and most successful ways to distraction though is in comparing ourselves to others. We all do it from time to time. Who’s at the top of the leaderboard? Who has the fastest car? Who has the biggest TV? And my personal favorite recently: who is the busiest, most stressed or has the biggest problems? Sometimes I think it’s a miracle anything gets done! But in this kind of world one thing I know is that the best way to fail is to spend your energies comparing yourself to those around you and picking some else’s path instead of creating your own.