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5 Steps First Time Investors Should Take in 2018

Peer-to-Peer lending is an amazing way to make your money work hard for you, by lending money to others in exchange for interests. However, if you want to get started in Peer-to-Peer lending, many questions can come to your mind. What exactly can I expect from it? How to actually start investing? Will I need to manage my investments every day? I wrote this article to answer those questions and help you get started in Biztech Peer-to-Peer lending/Investing.

We are first going to see how to integrate Biztech P2P lending into your financial goals. Then, we’ll see how to actually get started and start investing. Finally, we’ll see how to put your investments on autopilot to create a completely passive income stream. Let’s start!

1 – Set Your Goals

The first step, as with any financial decision, is to set your goals. I usually set three goals or objectives for any investment that I make: how much I will commit to it every month, what is my monthly income goal for this investment, and what will be the place of this investment in my investment portfolio.

The first thing to define is how much you will commit to the investment every month. Indeed, after a possible initial investment, you will need to inject fresh money into the investment every month to make it significant. I usually allocate a percentage of my monthly salary to invest it into peer-to-peer lending.

Then, you need to define how much you want your investment to generate every month. This is of course something you want to be able to reach, and that you will redefine in case it is reached, for example yearly. A good thing to note is that Biztech Investing platform will give you an average return of at least 10% per annum.

Finally, you need to define the allocation of P2P lending in your investment portfolio. Even though Biztech is dedicated to Peer-to-Peer lending, I don’t recommend putting all your eggs in the P2P lending basket. For example, Peer-to-Peer lending currently represents around 60% of my total portfolio with the other remaining 40%  being in Stocks, Mutual Funds and a few Business ventures.

2 – Sign up to Biztech Peer-to-Peer Lending Platform

Next, you will need to sign up to the Biztech Peer-to-Peer lending platform.

Biztech has significantly large growing volume of available loans for Investors. Indeed, you will need to invest in as many of these loans as possible to diversify your investment in P2P lending, so it’s important that you have many loans to choose from.

As an Active investor, I constantly recommend others to sign up to the Biztech platform where most of my Peer-to-Peer lending assets are located.

3 – Invest in Your First Loan

After you’ve signed up to invest on the platform the next step is to actually invest in your first loan! You will of course first need to transfer some money on this platform. The platform utilizes bank transfers so usually the money will be available for investment in less than 3 business days.

Then, once the money is available you can actually invest in your first loan. This article is not about strategies to invest in Biztech Peer-to-Peer lending platform, but the goal here is just to get familiar with the different filters that the platform offers. I recommend interacting with these filters to see which type of loans are available.

Then, simply make your first investment to get yourself started in Peer-to-Peer lending. Remember that as a new investor, you should always invest the minimal possible amount (usually around $500) in a given loan, in order to diversify your investment & reduce your exposure to risk.

4 – Go on Autopilot

Now that you have a foot in the game, it’s time to move up in another gear and automate the whole process. Indeed, at some point you will have payments coming back to your account every day, and you don’t want to constantly be re-investing your gains & choosing new loans.

Therefore, you really need to use the auto-investing functions that the Biztech platform offer. This is called ‘Autoinvest’ or ‘Basic Portfolio manager’. This function is quite transparent and will allow you to set your own filters, and then the platform will simply invest in any loan that matches your criteria.

This is why it is so important to understand what every filter mean first: otherwise, you wouldn’t know how to configure the automated investing function of the platform. Also remember that when you start, always set your automated investing function to invest the minimum amount possible on every loan. Once your automation functions are all set, you can now  start enjoying a completely passive income stream through Biztech Peer-to-Peer lending!

5 – Monitor Your Progress

The last step won’t give you a direct return on your money, but is nevertheless critical: you need to monitor the performances of your investments. This is important because it will tell you if your strategy is working or not. I usually monitor my Biztech account once a month. The platform will tell you your current annual return on investment. Monitoring your progress will tell you if you reached some of your goals, and if it is time to set new goals to get to the next level.

What’s Next?

Now that you have your first Biztech P2P investments up & running, it’s time to just repeat the process again & again to grow your investments. Ensure you diversify among many loans when you add fresh cash to the platform.

 

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