Lending Club

I stumbled upon Lending Club awhile back, and it actually was the first time I came across Mr. Money Mustache’s website (I highly recommend it!). Lending Club is a Peer to Peer lending site.  On the investor side, you can invest as little as $25 in a loan that someone has requested and earn the interest as they pay it back.  This, of course comes with the risk that they never pay back the loan, but that is cancelled out but those who do pay back with a high rate of interest.  Ideally, you want to spread out your risk by buying as many of these $25 loans as you can (jeez, makes me sound like a lending club salesman). It’s actually a very fascinating investment and I track it closely, so I'm adding it to this site.  Starting recently, I’ve been adding money sporadically whenever I see fit.  I hope to build this account up to $10,000 and give it enough time to prove itself as a worthy investment.  I’ll go ahead and keep this updated as of May 2016, as it could become a reasonable source of cash flow a couple years down the road.  We all know how important cash flow is for early retirement, so I hope for the best!

**Note: I had $71 worth of charge offs when I started up this account, so it will drag down my ROI for a few months, but it will even out in the long run (or at least I hope!).  

Lending Club Income

Month Total Notes Interest Income Total Income YTD Charged Off $
April
7 $2 $11 $71 (from last year - but I'll count it)
May
67 $2 $13 $71
June
84 $21 $34 $71
July
298 $56 $90 $93
August
331 $116 $206 $93
September
347 $133 $339 $93
October
369 $124 $462 $118
November
390 $125 $587 $187 (2 charge-offs killed this month)
December
409 $143 $731 $235 (nice bounce back month)