Some "pennywise" investing with my mad money


Back in January I took $100 and invested it in something new and different–peer to peer loans. I made my loans with Lending Club and divided my “investment” into four different loans of $25.

All are still current and one is even paying back aggressively. I’ll have another $25 back to reinvest around the end of the month.

So far, my net annualized return is 10.22%. My mom also used their IRA product and is experiencing an even better return (so jealous!).

I might invest more this way later after debt-freedom. It ties money up for a while (about 2-3 years) but you slowly get it back. I might use it like a CD ladder. I’m very excited to see how well P2P lending will fare after the traditional credit markets free up, but I certainly like this process a lot more than traditional banking.