How To Earn Extra Income With P2P Investment In 2018

For many of you reading this, I believe you must have been looking for ways to earn an extra income for so many reasons which could be just to have an extra nice meal in the middle of the month or perhaps for a financial backup plan especially if the economy is not doing so well.

There are so many ways to make extra income in 2018, but today I will share with you guys what I have just recently found and tested.
It started out with just playing around and surprisingly, it works!

For so many of you have been asking in my Instagram, I am currently investing in what we called P2P investment. Read on...

First, what is Peer-To-Peer (P2P) financing?

P2P financing is a new method that allows businesses to request or get funds from investors through online platform.

Let's put this in a simple way...
You and I both each have RM50 extra in our pocket every month.  We are talking about where to put this RM100 (RM50*2) extra every month so that we can at least earn some extra money from them.

Then, we found out that our neighbour, John, who is doing a business need some money to buy some new equipment for his business.

Based on this situation...

We, as the investor: have some extra cash and looking for ways to make our money  earn more for us, while

John, as the business owner: need some money or fund to buy new equipment for his business.

But the challenge is:

1. if we lend the money to John, how do we make sure John will pay back our money in future?

P2P platform act as a middle person here to connect us as an investor to businesses like John's business.

That is why sometimes you will hear people call it as Peer to Peer Lending too.

The best part is,
We can even earn some profit when we invest our RM100 in those businesses in the platform!

Why Peer-To-Peer are able to give higher returns compared to savings and investment products? 
Simple. P2P generally operating online which able them to run with lower overhead cost and provide the service more cheaper than traditional financial institutions.

That means, you can earn higher returns from P2P, while the businesses (borrower) can borrow money at lower interest rates.

Is investing in P2P financing safe?
I asked the same question before too! And rest assured that you will be protected. Why?

In Malaysia, the Securities Commission (SC) is the regulatory body for P2P funding activities via its P2P regulatory framework.  The framework has set out requirements for registration and obligations of a P2P operator and the type of issuers (SMEs seeking funds) and investors who can participate in P2P financing. It should also be noted that in Malaysia only businesses are allowed to be issuers who seek funding from P2P financing, making it safer to invest in.

What is the risk in investing in P2P investment?
I will be lying if I say P2P investment don't have ANY risk at all. This is an investment and not a saving. Every investment has a risk. The basic concept which I believe you know about investment is 'higher risk, higher return'. That's true!

That's the best part about this P2P because you can minimize your risk and at the same time generates more!

And that's why you must know the next step...

How should I invest in P2P Investment? 
I attended an Investor Talk last Saturday and they shared some good insight on an investment strategy which YOU MUST KNOW. Do you still remember, 'don't put all your egg in a basket'? Yes, my dear, the key point is DIVERSIFICATION. If you want to reduce the risk, just diversify them across your investment.

How much should I invest in P2P Investment?
Just please don't invest EVERYTHING in a single note (investment). Remember my friend, diversification...  So how much?

There are a few P2P platforms in Malaysia.
Some of them have a strict minimum deposit of RM1,000 for account registration while some other platforms (which I am currently using) offer you a free account registration (an even give you few cents to your account for registering with them 😆). I prefer the second option because it offers me more flexibility to top up and withdraw my investment at any time.

So how do I start?
Don't put your money in any investment in the P2P financing yet! If you just want to check out how this thing works, you can just register an account first, and look around how it works.

The verification will take a few working days, so while the verification taking places, at least you can look around and read business plan for any new notes coming in.

So where should I sign up an account for free and no deposit needed?
You can sign up HERE (this link contain my invitation link, please use it as a token of appreciation :)

Steps:
1. Fill up your details and simply verified your email using the code that they send in your email.
2. Log in to your account and continue with the Profile Completion.

How much do I get so far from this investment?
To be honest, I've been looking for this information everywhere on the internet too before I started investing!

I have just started a few months ago and this is the summary of my last investment:


I will share more on my next post about how I invest and how the payments are made.

Till then, get yourself registered first since the verification will takes few working days. I bet you don't want to miss it (like how I missed the first few good notes because of late registration and I hope you will not do the same thing too, Lesson Learned)!

Happy investing!

See youuu in the next post :)