And here is my August 2020 Passive Income Update. We are officially five months into the pandemic.
Despite the pandemic, this past month felt quite special to me: I finally returned to Turkey, and it feels real good to be back. It is so interesting to see and experience how people in Turkey are coping with COVID-19 and its economic ramifications. I can report that things feel safe and I am excited to spend my summer here!
Also in terms of investing, July was a great month. While I spent time with friends on the Aegean coast and in Istanbul (see photos of this blog post), my passive income has crossed the 1,000 EUR line again: In July 2020, my passive income was 1,005.79 EUR:
– P2P lending: 583.83 EUR
– Real Estate Lending: 186.76 EUR
– ETF Dividends: 69.27 EUR
– Stock Photos/Videos: 165.93 EUR
Passive Income Breakdown:
P2P & Real Estate Lending Overview – August 2020 Passive Income Update
As part of my August 2020 passive income update, here is a quick overview of passive income that I was earning this past month from three (3) P2P Lending and two (2) Real-Estate P2P Lending platforms that I am currently investing in.
–Traded Funds (ETF) Update – August 2020 🥳
Even in times of COVID-19, I hold onto my opinion that investing in an MSCI World ETF back in 2016 was one of the best decisions of my life. I am explaining details in my ETF portfolio post, but in a nutshell, I believe there is no better and more cost-effective way to save & invest long term (e.g. for retirement) while earning passive income from dividends than through ETFs.
Why would I say that? Since I started investing in the MSCI World ETF in 2016, the value of the ETF has increased by 42.37% (despite the recent coronavirus-related shock in stock markets). The shares that I bought originally for 145.09 EUR a piece are currently valued 196.72 EUR.
As of today, I am holding 80,624.05 EUR in MSCI World and MSCI Emerging Market ETFs. The value of my ETF portfolio decreased by -0.78% in July but I am confident that it will continue to gain in value over the coming months/years, just like it did over the past four years.
Moving my ETF Portfolio to Degiro
I am in the process of moving my ETF portfolio to Degiro. After many years of investing at my regular bank (ING Bank), I am moving my ETFs to Degiro, a well-know and big European broker which offers a free online trader account and much lower transaction fees than my regular bank. When buying and selling ETFs, Degiro charges €2 + 0.03% per ETF trade which is the lowest I have seen on the market.
I was inspired to move to Degiro throug a post from my fellow investor blogger thepoorswiss.
My 1,000 EUR monthly ETF savings plan
Many of you will know about my 1,000 EUR monthly ETF savings plan which I talked about in my January Blog Post. It’s automated, runs in the background, and keeps buying MSCI World ETFs worth 1,000 EUR on the first of every month. It’s a fantastic way of cost-averaging and keeps me committed to my financial savings goals. More about my ETF savings plan and why it was such a great idea to go back to an automated saving plan in this blog post.
That’s it for my August 2020 Passive Income Update! If you are interested, please follow my journey on my Facebook page Financial Freedom Journey for more frequent updates. And as always: If you have any questions or comments, please pop them in the comment section below. Or get in touch via Facebook or Email.
Stay safe, stay healthy, and please do practice social distancing and save lives!