2018 Goal Review

About a year ago I wrote a blog post titled “2018 Goals” an article which I reflected over my recent short coming and looked to 2018 with open eyes and tried to make the best of my situation. Recently inspired by Grant Cardone’s “10X rule” I set lofty goals and set a series of plans in place to achieve them. Today we’ll review what happened to all of that and what I intend to do moving forward. Below are the goals followed by a bullet point explanation as to what happened.

Goals:

$2500 in my aspiration emergency fund (this would give me the 1.00% APY interest rate)

  • This had quite a turn of events occur. First off, I no longer use Aspiration as my savings account, I upgraded to a Discover Savings Account which pays out 2.00% APY and may increase with the recent federal rate increase. Overall, I fell very short of this goal and ended up with $900 saved (was $1,000 but Christmas fucked me). I focused on adding funds to accounts that would make more than the 2.00%. I do have a joint savings account my parents started for me when I was very young, if I transfer that account over I would be able to hit my goal as shown above.

$20,000 In my Robinhood portfolio (originally shooting for $10,000, hoping some options trading will give me the edge I need to achieve this goal)

  • I hit the original goal of $10,000, in fact I will finish 2018 with $11,500 and I have recently been getting destroyed in the stock market. $20,000 was an incredibly lofty goal in terms of being able to generate that much profit from the markets and I was unable to achieve that. I did increase my portfolio by $3,500 but I turned my attention towards Lending Club.

$10,000 in stash app (originally $5,000)

  • I believe Stash topped out at $3500 at some point this fall but has since dropped due to stock market performance as well as several withdrawals to fund my ski trip and other activities that I have going on. I was able to increase this portfolio by $1700, but again primarily focused on Lending Club.

$10,000 in Lending club (originally $5,000, would be incredibly useful in the stretch investing method)

  • I have preformed rather well in this category this year. My plans continually shift, and Lending Club became my primary target in terms of funding this Summer and Fall. I topped out the account at $6,381 as far as my records indicate, in pursuit to stretch invest my rent this school year. While $10,000 was quite ambitious that may be my new goal for 2019. In total, I added over $4,000 to this account this summer and fall.

Collect over $1,000 in dividends and stock interest (this year projected amount was ~$300, original goal was $500)

  • This one is a constant battle for me. I love passive income, I love making money while I sleep, but I also need to generate positive returns in the stock market too. My investing strategy constantly shifts but I also look at growth stocks that could deliver amazing returns and not just dividend stocks. Between lack of funding in my Robinhood portfolio and investing mostly in growth and value stocks rather than just dividend stocks I was unable to hit my target.

Have 5, $1,000+/year income streams by the end of 2018 (Anticipate being Dividends/interest, Lending Club interest, Internship, Drop Shipping, Blog)

  • I honestly don’t know what I was thinking on this one, perhaps, diversifying my income streams more however my summer required extreme focus to achieve the desired results. My most lucrative income streams in order:
    • Internship $22,200
    • Lending Club interest $419 (still waiting on December results so approximately $500)
    • Stock profit $375 (approximated)
    • Dividend income $300 approximately
    • Various odds and ends of selling unused things or doing odd jobs might come out to $200/year or so

As you can see my alternative income streams just did not come together like they needed to.

150 blog posts by the end of 2018

I thought I was going to make impressive headway during this summer but that was not the case. With my line of work, I was working 6-7 days a week and had no set schedule which hindered my blogging. My goal is to finish 2018 with 75 blog posts and this one will come in at #69 (nice) (gang gang gang) (RBP).

Image result for ross bolen podcast

As you can see, none of my big goals of the year were accomplished however that is not always a bad thing. I would rather go big and come up short rather than go small and have no ambition in what I am pursuing. The 10X mentality may not translate perfectly into my academic life or my internship as well as it would to a post graduate’s career and starting out his or her life. You can’t 10X your GPA from a 4.0 to a 40.0. There is a finite amount of time and resources as an intern to try and compete with targets and goals set by full-time coworkers that can work 9 months compared to your 3 months.

The good news is I will be making that transition this summer to a full-time employee and be finished with college. While I will be training for most of 2019 and will not have control of my income like I will when I really get into sales, I will have access to more income than I have in all my life. With that all in mind, I plan to make some big moves in 2019 to make the most of my opportunities. Keep your eyes open for that post!

So, tell me some of your goals and ambitions this year, I look forward to reading your comments.

Thanks, B^2

 

Money Saving Apps

I’ve been putting this one off for a hot minute, literally months, but its time to nut up or shut up so here we go.

Image result for woody harrelson nut up or shut up

We all like to save money, buying something on sale, finding that deal online, or working your credit card for maximum cash back is always a good feeling. Today I am going to share with you some of the apps I use to save money. Let’s start with Drop.

Image result for drop app

Drop is an app that rewards you with points when you spend money at certain places. You can individualize your account a little bit based on your shopping preferences so its not a cookie cutter mold you must fit into to use this app. All that is required is linking your credit/debit cards and it’ll track when you make purchases at certain place that they reward. To share some details with you all about my personal account I currently am rewarded for Walmart, Starbucks, Chipotle, McDonalds, and Target. Below is the screen displaying those offers. As well as my rewards and the general reward page.

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Overall, I’ve cashed in $10 using this app and it can be set up in under 10 minutes and requires no additional work outside your normal spending habits. There are also plenty of opportunities to earn bonus points and whatnot to get to your rewards faster!

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My drop referral code is: ay0x4

Receipt Hog is the next app we’ll look at. It’s self-explanatory, it’s an app that you upload receipts to and it pays you for those receipts. No credit or debit cards need to be linked, nothing like that, just snap a pic of the receipt and upload and answer a 30 second survey and boom you get some coins. Those coins can cash in for an amazon gift card, visa debit card, or PayPal credit. I currently am stashing up my coins for a bigger payout, but I’ve passed the $5 mark. I have been super hit or miss with receipt hog, just with small transactions like at a gas station or something like that I don’t always ask for the receipt and I lose out that potential from the app. Overall, it’s an easy app to use however it isn’t as lucrative or easy as Drop since that is fully automated.

Ibotta and Checkout51 are going to be compared at the same time since they are very similar. They are online app-based coupons essentially. I don’t know if you or your significant other or parents were ever coupon people, but my mom use to be so that is how I can relate this. I would normally make my grocery shopping list and then go through the apps and see if anything I need had a coupon for it, they have most major grocery stores, so it shouldn’t be an issue to find your grocery store of choice. For both they require $20 in coupons to be redeemed to be able to withdraw your savings. I prefer Ibotta compared to Checkout51 due to its ease of use, how its organized, and I think it has better coupons than Checkout51. Examples can be found below.

Ibotta:

Checkout51:

My Ibotta referral code is: ficlsui

My checkout51 referral code is: https://checkout51.app.link/GN411WUkOS

For online shopping I use honey and RetailMeNot however I know there are tons of online discount sites, coupons, etc. Honey is a web browser installment that compares price history of an item you are planning to buy. RetailMeNot is an online search engine for coupon codes. I generally use both prior to purchasing something online just to make sure I am getting a good deal. I used to use a many more apps and online wholesale websites but have since eased off the online shopping as I grew older.

If you are interested in any of the above apps, I encourage you to try them out. As I mentioned before I use all the apps I explained above and I’m happy with the results. Overall, I would say I have saved around $100 since using them over the last 2 years or so.

As a college student I tend to have lower spending than the average family so pending your current financial situation and how you use the app or what your current scenario is your results may vary. Free money is free money though so why not pad your pockets a little bit more.

As always thanks for reading and let me know what you want to hear more about!

B^2

 

Lending Club Update 12/13/18

Hey everyone, sorry for the delay, I just took my last 2 exams yesterday 12/12/18 for school and can finally settle down and get some non-school related work done. So today I’ll be comparing my Lending Club portfolio to what it was on the last update from 9/17/18. Now for those of you who are reading this blog for the first time let me catch you up quick. If you are familiar with me and Lending Club skip down to the horizontal line.

My name is Brandon, I’m a college student if you couldn’t tell by the exams above, I graduate this upcoming May, and already have a job secured so that’s exciting. Lending Club is a peer to peer (P2P) lending platform where, rather than borrowing money from a bank or financial institution, individual investors fund the borrows and receive interest and what not just like a bank does. I’m obviously on the investor side of things so I can’t say much about the borrowing side.

It’s a rather simple platform, I as an investor put in say $1,000 (you can invest with as little as $25 but this is just an example), I can pick which loans I want to fund and fund it into $25 increments (it’s not all or nothing). So, for example, XYZ is requesting a loan for $20,000 for credit consolidation, Lending Club does its due diligence in terms of background information (credit score, credit history, current income, current debt, debt-to-income ratio, etc. etc,), they then assign them a scoring based on the above information in an A-E, 1-5 scale. An A1 rating represents the safest investment while an E5 represents the riskiest investment. Based on that scoring the interest rate is calculated as of today (the rates have changed recently due to rising interest rates in the U.S. and Lending Club has been doing a good job of keeping their investments in line with rising interest), an A1 loan has a 6.46% interest rate, while an E5 has a 27.27% interest rate. The loans come in either 3 year or 5-year lengths and the investors get paid monthly. So in the previous example if I were to take that $1,000 and put the money to work in a variety of loans ($25*40=$1,000) spread over different ratings, I would get paid monthly on all of those and earn somewhere between 4%-7% give or take because of course Lending Club takes a 1%-2% cut or so. Now the loans can always default, or get paid back early, in that case you lose potential interest. So obviously there’s some risk involved as with any investment and even the high-quality A grade loans have defaulted on me before.

My favorite aspects of Lending Club are the monthly principal and interest payments from every loan. In November I collected $75.28 in interest and received about $250 in principal back. I also love the ease of reinvesting at the level I am at. With about $325 coming in from last month divided by the $25/note price tag I could reinvest my P&I 13 times in a month all while earning around 7% interest! Only place you can reinvest quicker is a good savings account and even then, the best you’ll make is 2% (at least that’s what my discover account makes a year)

Alright time to compare the last 3 months side by side. For the following comparisons we’ll do the September data on the left and the December data on the right.         lending club notes       LC notes snip 12.13.18

As you can see, we have a significant increase in notes over the almost 3-month period. I mentioned in the previous update that I was waiting on my internship bonus to come in to help fund this endeavor and when it arrived it allowed me to put another $1,500 into Lending Club. Charge offs, fully paid and other scenarios have gone up as they always had.

I did not include the following pictures in my previous update but here they are now. Below is a pie chart depicting my current portfolio by what rating it has. As you can see it is relatively spread even throughout the spectrum except for F and G as they are no longer offered and were incredibly risky. My detailed returns are also shown below.

note composition 12.13.18 note details 12.13.18

Moving on, we’ll examine the overall account value as well as return on investment. Since these pictures are long, the September numbers will be shown first, then December.

lending club adjusted

LC interest 12.13.18

This shows the adjusted account value and return for my entire portfolio. It is adjusted based off the probability and amount of the various late and defaulted notes in my portfolio. As you can see the account value is dramatically higher as well as the % return. I expected this to happen for a few reasons. For one I mentioned a $1,500 deposit I made to the account increasing its value as well as being able to compound the account through October to reinvest my earnings. As for percent return the account had an influx of new notes at the time as you can see by the first set of pictures. When notes are not issued they add to the account value but not to the profit because they haven’t started paying you yet. This decreases the % return significant and I have seen it every time I make a large deposit. Over time this will drop due to notes defaulting and being paid late.

The next set of pictures show the non-adjusted account values again we will go September then December.

lending club no adjust

LC interest non adjust

As you can see the percent return and account values are both up and consistent with the previous set of pictures.

So you may be asking what the point of all of this is, like nice bro you made some money, but what’s the deal? Well making money especially passively has always been a huge focus for me, you only have 24 hours in a day and you gotta sleep, so until you can make money while you sleep or while you are not working you will be broke forever. (paraphrased from Warren Buffett) So check that one off the box. I mentioned earlier that I am a college student, I have internships over the summer and I don’t work for the other 9 months of the year, and I needed a way to generate income in a fluid manner throughout the school year. Yes I know I could just stick it all in the bank and withdraw when needed but you don’t make shit at the bank so that’s wasting your money’s potential.

Here’s a bit of background, I moved out of my fraternity house this semester, so I was kinda on my own as far as rent went and I wanted a way to pay my rent and make money at the same time as I have been eluding to in the previous paragraph. I decided to go balls out in Lending Club, utilize the monthly payouts, utilize the return, utilize the fluidity from Lending Club to checking account transaction, and fund my rent through Lending Club.

Overall, I think I accomplished what I was trying to do, if you recall the September update, I mentioned my rent at school was $275 + utilities = approx. $350. I know that’s dirt cheap but it’s a small college town and its not the most glamorous house but whatever I’ve dealt with worse. The total collected amount for principal and interest in November was about $350 so I technically made it, but it doesn’t quite feel like it. I wanted to do better than where I am at now and I am currently in full out withdrawal mode to pay rent, and credit cards, fund my ski trip, buy Christmas presents etc. etc. So, I can’t compound or add to Lending Club any time soon. I believe that if I could’ve started adding to Lending Club sooner this summer (between rent and deposits and just starting work, I was seriously in the hole the first month of my internship this summer) I would’ve had a better shot. I made incredible money over the summer, but I lost the time value of it and the compounding power, because I received about half of my total payment after I left to go back to school. You can read about my internship here

Well awesome guys thank you so much for taking the time to read this, lots more will be coming here in December, we’ve got big plans, big goals, and lots of ambition to get there. Please let me know what you like, don’t like, want to hear more about, if you want shorter or longer posts, videos, tweets, more or less stuff on Instagram etc etc.

I’m here to provide insight and value to all my followers and readers. I want to know what you guys want to hear so I can deliver the best content in the best format possible. Hit me up here and leave a comment, or dm me on Instagram @bsquared.website.

Here’s the link to Lending Club Update 9-17-18

Thank you everyone!

B^2