I wanted to start 2013 by adding a new way to earn passive income, similar to how last year, blogging and dividend stocks were valuable additions. This time, P2P (peer-to-peer) lending caught my eye because it promised several benefits like higher returns than the stock market, steady interest income, access to earnings before retirement, lower risk if you pick good borrowers, and diversifying away from the stock market.
I turned to the Internet to learn all I could about P2P lending. After reading several articles, I found a thread on the Early Retirement forum discussing whether P2P investing was worth the effort. A user shared a detailed strategy for assessing P2P investments, pointing me to a niche site called the Lend Academy, which offered articles and a free eBook on the topic.
I downloaded the eBook and quickly discovered that not all U.S. states allow P2P lending, including my home state of Michigan. This was a huge letdown, which led me to confirm this information through additional research. Free Money Finance, also from Michigan, confirmed that P2P investing was not feasible for Michiganders.
So, my P2P investing ambitions came to an abrupt halt. If you’re interested in P2P investing, the eBook from Lend Academy can be helpful, but remember that success depends on the quality of loans and your ability to choose reliable borrowers. Key tips include spreading your investments across many loans, being wary of high-interest loans, thoroughly reading borrower details, and accounting for taxes on earned interest.
Since P2P investing is not an option for me, I’ve decided to explore other passive income opportunities to fund my early retirement efforts. Possibilities include building another blog or niche website, writing and selling an eBook, getting into affiliate marketing, taking on freelance writing projects, focusing more on stock music licensing, or finally buying a rental property.
Building another blog is my top choice because I’ve learned a lot from creating My Money Design and earning a small income from it. Expanding my online presence seems low-risk and potentially rewarding. While challenges like improving my Google ranking remain, I’m determined to continue learning and growing.
Writing an eBook is also high on my list, as I already have potential material gathered from my blog. Publishing and marketing an eBook will be a new challenge, but I’m willing to learn through trial and error.
On the other hand, investing in rental property is the most intimidating option. Unlike digital ventures, real estate demands ongoing commitment, with tenant issues and bills that don’t go away easily.
Whatever option I choose, doing nothing is not an answer. The year is just beginning, and I am eager to develop another stream of passive income. Let’s get started!
