4 Things You Should Not Do When Investing in P2P Lending (Plus One Thing You Should Do!)

Many investors may find investment in Peer-to-Peer (P2P) lending attractive due to its potential benefits, such as higher returns and shorter tenors. The barrier to entry is also one of the lowest amongst all types of investments, from just $20.

Read about the 4 things to expect when you invest in P2P lending and also the 5 reasons to start investing in P2P lending.

First-time investors who are not yet familiar with the details of P2P lending may be hesitant to start this investment. We have compiled a list of 4 things you should look out for when investing with P2P platforms to help you avoid common mistakes made by first-time investors.

1. Investing only in loans with high returns

Investors may often be incentivised to participate in P2P investments due to the high returns they potentially provide. To receive greater returns, some investors may end up only picking loans with higher interest rates. However, interest rates are priced based on the credit risk and higher interest rates are an indication of higher risks. Interest rates should not be the only determining factor for investing in a loan. As an investor, you would be better off diversifying you investments across loans with varying interest rates.

2. Not diversifying your investments

In any type of investment, it’s crucial to diversify your portfolio so that you won’t end up putting all your eggs in one basket. When you concentrate your investments and don’t diversify them, your portfolio may go south quickly if there are non-performing loans.

Expanding on the first point, a balanced mix of high and low interest rates is a way to diversify your investments. Additionally, you can also invest across different SMEs, industries, products, loan tenors as well as investment amounts.

An easy way to diversify on Funding Societies’ platform is to set up Auto Invest. The Auto Invest bots can be customised based on your investment preferences. That said, you have the flexibility to opt out of loans in which you are not interested before the crowdfunding starts.

Secondly, you can diversify across different types of investment assets that align with your investment risk profile. This can include savings, insurances and the traditional investment vehicles such as bonds and stocks.

3. Withdrawing returns when you receive them

It may be tempting to withdraw your returns once you receive them. However, experienced P2P investors typically don’t do that to potentially benefit from the compounding effect from re-investments. You can re-invest your monthly repayments to potentially receive a higher compounded interest. Your returns (in the form of interests) also start to form part of your capital which you can utilise to re-invest in upcoming loans.

By leaving the repayments in your account, you are ensured that you have funds which can be readily invested when opportunities arise, even without pumping in fresh funds.

4. Not being familiar with P2P lending platforms & the details

While the concept of P2P lending is not difficult to understand, it is important to equip yourself with knowledge of the P2P lending platforms that you wish to invest with. Investing with a stable and responsible P2P lending platform will help you minimise unnecessary risks and inconveniences. Ensure (and expect!) that the platform is responsive, transparent in its processes and stable to carry out its operations and duties for investors.

A good platform to consider is Funding Societies, the largest P2P lending platform in Southeast Asia that holds the Capital Markets Service Licence issued by the Monetary Authority of Singapore (MAS). As of March 2019, it has crowdfunded more than $450 million in the region across more than 300,000 loans. This statistic also reflects the number of opportunities for investors.

Understanding the details of each investment will also allow you to make informed investment decisions. At Funding Societies, a loan fact sheet will be provided on every investment opportunity. It contains details of the loan, its repayment schedule, a summary of the company and guarantors, the company’s financials, and comments from Funding Societies’ very own credit team.

What’s the ONE thing you should do?

Seriously consider P2P lending as part of your investment portfolio! 😀

P2P loans are a form of alternative investments that hold many benefits, especially for new investors that would like to start small or with experienced investors looking to diversify their portfolio. An investment with Funding Societies starts from just $20.

By watching out for these 4 listed things that you should not do when investing on P2P lending, we hope that you’ll be able to have a smooth and successful P2P investment journey!

Ready to start your P2P investment journey? Sign up with Funding Societies today, or live chat with their Customer Experience team to understand this investment better.


Disclaimers

This article is contributed by Funding Societies and is adopted from this blog article.

It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.

Nothing in this article should be construed as constitute or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies to buy or subscribe for any securities and/or investment products. The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.

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Ninja Ways To Earn Money While Vacationing

Taking a much-deserved vacation is supposed to be relaxing. However, traveling on a tight budget can reduce the excitement. It does not matter if you get paid vacation leaves! Planning for a trip is an expensive undertaking. Money should be placed in a practical position whereby you can still pay for your bills when you come back home. Earning money while on a vacation can be a simple solution to your financial woes.

Ninjas are warriors known for their speedy and sneaky attacks. Much like a ninja, you may earn money in the fastest way possible by following these tips.

SELL YOUR PHOTOGRAPHS

The Internet has a plethora of websites that buy and sell stock images from public users. Fotolia is one of the websites where you can make money by selling your digital photographs. Simply upload your best photos for the approval of the website’s administrators. Once your photos have been approved, it will be added to the marketplace where individuals or businesses can buy them.

You earn royalties which can vary from a few cents to a couple of dollars every time your photos are downloaded. Please be warned that Fotolia is closing on November 2019. Use it will you still can!

CLEAN YOUR CLOSET

While I was packing for my Bangkok getaway, I noticed how much clothes I should clear out. I remember the sleeveless tops and jeans that I no longer wear. Instead of tossing these, I can donate or sell some on Carousell. Carousell is an app that will enable you to connect to many local buyers. It can provide you a venue to negotiate with your potential buyer to get the best deal.

You will not have to worry about it while you are away. When you come back, you will be able to cash in on all of your offers and send all of your items.

SIGN-UP FOR REWARDS

Before jetting off to your dream destination, consider making an appointment to your nearest credit card issuer. Sign-up for travel-driven credit cards to reap its benefits. Some cards, like Citi PremierMiles Visa Credit Card,
will give you sign-up bonuses and points for every travel (e.g., 2 Citi Miles per S$1 on overseas travels).

Continue using said card to accumulate more points leading up to a better cash back experience. Who knows? Your next trip might be free!

Image Credits: pixabay.com

There are many ways to earn money with little to no effort at all. Do your research and stick to what you are good at. Have fun on your exciting trip!

Source: popsugar

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How To Fuel Up Your Money After Vacation

With a burnout heart, my friends and I decided to go on a week-long vacation to Bangkok. We have been working so hard for the past months that our bodies craved for a break. There is nothing wrong with giving yourself a reward from time to time. We all need and deserve it.

However, you may hit a financial iceberg when you go overboard. This happens to many Singaporeans who are on a vacation. They think that they can throw caution out of the window and spend like there is no tomorrow!

During our trip, we maximized each day by going to several tourist attractions from day to night. We spent more money than our perceived expenses. After our week-long sabbatical, I decided to fuel up my funds.

STEP # 1 – EXAMINE THE DAMAGE

As with everything, the first step is awareness. Find how much your vacation has cost you. Accept the fact that you cannot undo the expenses you have drained while you were on a vacation. You cannot bring back the time you bought a new sarong to comply with the temple’s dress code! While you cannot take back the S$200 you spent in a posh bar, you must still know how much you spent during your trip.

Ask yourself the following questions:

a. How much did I spend on a daily basis?
b. How much is my credit card bill?
c. Can I afford to pay in full?
d. When will my next paycheck arrive?
e. Will I need to take some money from my emergency fund?

You may not realize how overwhelming your financial state is while you were on a vacation. So, now is the time to see the total damage. Knowing where you stand financially can help you to recover with ease.

STEP # 2 – TAKE NECESSARY ACTION

After identifying the financial holes, it is time to take action. Rewrite your budget in accordance to your current financial situation. Allot a portion of your funds to repayment of your credit card bills or lost savings. Make things easier by downloading budgeting apps such as Mint.

During the recovery period, you must do your best to tone down your spending. Eliminate or cut down optional expenses for the next few months. Dine out less and take fewer trips to the shopping malls. Minimize your spending by steering away from temptations! Do not worry about bending down as your financial diet will not last forever.

You may also earn money by taking up a part-time job. Get extra money without sacrificing your main source of income.

STEP # 3 – LEARN FROM MISTAKES

You have learned your lesson by facing its consequences. The next time you go on a vacation, you will know better. Use what you have learned to strategize your itinerary. Perhaps you can dwell on experiences rather than buying too many souvenirs for your family. In Bangkok alone, souvenirs start at S$5. Besides, these souvenirs may end up as clutter in someone else’s home. Do not get me started with the overpriced food in tourist spots!

Before going on a vacation, you can start writing down a budget that will include your expenses and a cushion (i.e., emergency funds). I remember when we were shocked by the S$215 boat ride in the Floating Market. I had to withdrew more money on that day. Providing a travel cushion can prevent this. Stick to the budget as much as you can!

Image Credits: pixabay.com

There are many ways to fuel up your overused wallet such as creating a new budget or eliminating optional expenses. Follow these tips to recover financially from your vacation splurge! Ensure that going overboard does not happen again.

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6 Credit Card Do’s & Don’ts

DO NOT SPEND WITHOUT CONTROL

Let me start by saying that you must not spend more than what you can afford. Remember that credit is a loan, which is meant to be repaid. It is your responsibility to stay on top of your debts and to keep your commitment with the lenders. Maintain your control by avoiding the credit limit of your cards.

DO CHECK YOUR CREDIT HISTORY

Reality check! Credit cards with premier rewards and terms fall down to candidates with the best credit. This is why it is important to see your financial circumstance in the eyes of an issuer. Consider getting a credit report, before availing a credit card. Keep your eyes peeled to some errors!

Image Credits: pixabay.com

DO NOT PICK AN UNSPECIFIC CARD

Much like a box of chocolates, credit cards exist to embody different functions. Some are used for travel miles and others are used for shopping rebates. You must figure out which credit card suits you best! Compare credit card options from different issuers, before making a grand decision.

DO KEEP UP WITH YOUR STATEMENTS

To reap the benefits of your credit cards, you must fully pay for your statement each month. Not paying the full amount entails acquiring interest. The interest that you will be paying for will just cancel out any benefits that you are meant to receive. Moreover, paying off your statement each months ensures that you stay out of debt too.

DO NOT GIVE YOUR CREDIT CARD INFORMATION AWAY

As much as you trust a partner or a friend, you must not give your credit card information to someone else. It may entice this person to use it against the law. Say that you lent your credit card to a co-worker. While some cashiers do not check NRIC these days, you will never know when someone will ask for it. You would not want to be entangled with a “fraudulent” scene.

Image Credits: pixabay.com

DO MEMORIZE THE ISSUER’S HOTLINE

A credit card offers an additional layer of protection than a debit card. Debit cards only offer the pin numbers as protection. You see, credit card companies often have a department that follows up on reports of fraudulent charges. Things will be taken cared of, if you quickly report a stolen credit card. Thus, you must know the no-cost hotline of your credit card issuer.

Sources: 1 & 2

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Save Up To $82/Month On Delivery Fees With Grab’s Food Plans

If you love GrabFood (like we all do!), you are in for a treat with Grab’s latest offering.

Food Plans are subscription plans under GrabFood that are designed to help subscribers achieve massive savings automatically.

For a limited time only, subscribe to Grab’s Free Delivery Subscription Food Plan and save up to $82 on delivery fees in a month.

Arnold’s Fried Chicken on GrabFood

What Is The Free Delivery Subscription Food Plan?

Order the Dian Xiao Er’s Signature Herbal Roast Duck on GrabFood

For only $7.99/month, you will get 30 free deliveries per month under the Free Delivery Subscription Food Plan. Given that GrabFood’s delivery fee averages about $3 per delivery, the Free Delivery Subscription Food Plan can deliver (pun intended) massive savings of up to $82 per month! In case you are curious, here’s the math:

  • $3 X 30 Free Deliveries – $7.99 (Cost of Subscription of Free Delivery Subscription Food Plan)

Furthermore, as an added convenience for GrabFood user, subscription plans are also auto-renewed monthly. This smooth and hassle-free process ensures that you do not miss out on any savings. Not to worry, subscribers can cancel anytime they change their mind.

Toast Box’s Drumstick Braised Pork Rice

Limited-time Launch Promo Giveaways

As part of Food Plan’s launch promotion, you get to save EVEN MORE when you subscribe today! A total of $15 worth of GrabFood vouchers:

  • 1X$5 off (with min. spend of $10)
  • 1X$10 off (with min. spend of $20)

will be given away as part of the launch promotion. These vouchers will be credited into your account instantaneously upon confirmation of subscription.

How To Subscribe To Grab’s Food Plan?

  1. Launch the Grab App and tap on your Profile Picture
  2. Select ‘Subscriptions’
  3. Scroll to find ‘Food Plans’ & tap ‘View Plan’
  4. Select ‘Free Delivery Subscription’ and tap ‘Get This Plan’
  5. Tap ‘Confirm’ to subscribe after you have checked your payment details
  6. You will find the vouchers awarded to you instantly!

Wait no more and sign up for GrabFood’s Free Delivery Subscription Food Plan to save up to $82 of delivery fees in a month!

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