Welcome to my June 2020 Passive Income Update.
We are 3 months into COVID-19 lockdown and we are continuing to practice extreme social distancing. It is a totally different world that we are finding ourselves in. I have accustomed to certain things (working from home vs. coffee shops) but I am still missing many other aspects of life (traveling, booking flights, workout classes)
The pandemic has also brought some good to my life. Never in my life have I spent so much time:
- Reading the newspaper
- Working out (running, spinning, HIIT)
- Cooking meals
- Spending time outdoors (hiking, walking)
I have to say that I have been fortunate to be able to keep my part-time job, which (a) gives me something meaningful to do and (b) covers my living expenses in addition to my passive income.
June 2020 Passive Income Update
My total passive income in May 2020:
– P2P lending: 426.05 EUR
– Real Estate Lending: 23.68 EUR
– ETF Dividends: 64.56 EUR
– Stock Photos/Videos: 75.05 EUR
TOTAL: 589.34 EUR (~668.11 USD)
P2P Lending & Real Estate Lending Update – June 2020
|Platform||May'19 Interest Income||May'19 XIRR||Total Investment|
|TOTAL||€ 589.34||€ 117,652.26|
|Mintos||€ 287.18||8.63%||€ 32,100.00|
|Twino||€ 71.39||11.17%||€ 7,500.00|
|Swaper||€ 67.48||13.07%||€ 1,100.00|
|Estateguru||€ 23.68||5.43%*||€ 5,000.00|
|Crowdestate||€ 0||0.0%*||€ 950.00|
|ETF Dividends||€ 64.56||€ 73,658.67|
|Shutterstock (Stock Video)||€ 75.05|
P2P & Real Estate Lending Overview – June 2020 Passive Income Update
As part of my June 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.
Given the uncertainty around the short- and long-term economic ramifications of COVID-19, I believe that there is a real chance that lenders will struggle to pay back their loans, which in turn could lead to delayed payments, P2P lending platforms and loan originators struggling with payback guarantees, etc. For that reason, I am reminding myself that I should only invest what I can afford to lose. P2P lending is a form of high-risk investment which remains to large extend unregulated.
–Traded Funds (ETF) Update – June 2020 🥳
Even in times of unstable (stock) markets, I hold onto my opinion that investing in the 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.
Since I started investing in the MSCI World ETF in 2016, the value of the ETF has increased by 40.14% (despite the recent coronavirus-related shock in stock markets). The shares that I bought originally for 145.09 EUR a currently valued 201.39 EUR.
Coronavirus and my ETF portfolio
The spread of the Coronavirus (COVID-19) is severely affecting global economies and the 1600+ companies under the MSCI World are affected just as much. The UBS MSCI World that I have invested in since 2016 had temporarily dropped in value from 224 EUR to 164 EUR per ETF, but is now already back up at 201 EUR. In total numbers, that means that my ETF portfolio (~73,000 EUR) has lost 5,86% of its value this year, but is already on its path to recovery. I am not worried!
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 June 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,