Financial freedom through passive earnings

How to obtain it with the compound interest

The tales that the Internet tells about the passive gains

The Internet is full of guides to generate passive earnings that will allow you to no longer have to work to live but, as you have noticed, the reality is a little different. Nobody gives you anything and to generate a “passive” gain serve so much effort and perseverance. When these guides explain that among the best ways there is writing and selling articles, or a blog I get a little ‘ to laugh because that for me is not a passive gain since it still requires work to write, promote, maintain their site. A good example of what I say you can find it on Enrica Crivello’s website.

What distinguishes P2P lending in the field of passive income

The main difference is that they are really passive, i.e. they do not require time to be devoted. Of course, however, it is not all rose and flowers because, to have a decent annuity you have to have a big capital invested. To have an annuity of about €1000 per month, for example, you will have to have a capital invested of about €100,000 whereas the average interest of my investments is around 12.5% if you already have this capital, you are lucky but if, like me, matches Zero, then you’ll have to set up a monthly storage plan.

My storage plan

My accumulation plan starts in the far 2016 and basic is to invest on various P2P platforms €200 per month deducted from my salary. These are added to the interest accrued on the capital already present. This means that, thanks to the mechanism of the compound interest, the growth of capital becomes exponential because interest also produces interests in turn. According to the projections made using the data collected in these two years, I will still need 4 years to obtain an annuity of more than €1000 per month bringing the total to
7 years. Clearly this is not necessary if you own a good starting capital.

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