5 Bucks a Day

Years ago, getting a good return on your savings wasn’t difficult.  I remember double digit yields on money market funds that were totally safe.

Now if you keep your money in a passbook savings account, or have a low balance, you’re probably looking at maybe 1%.  Ugh.

OK, let’s put this into perspective.  5 bucks a day is $1825 a year.  If you want to make 5 bucks a day from simple interest, at 1% return, you need to sock away $182,500.  I don’t know about you, but if I had that kind of money to invest, I sure wouldn’t keep it earning 1%.

But anything else is risky, right?  The stock market is certainly fluctuating.  The real estate market is in shambles.  What’s a person to do?

Well, if you’re not afraid of a little risk (very little), there’s Prosper.  It’s a person to person lending network.  In other words people like you and me can play banker.  Well, not totally to the point that we have to be regulated by the feds, but sort of.

For more information, and my personal review, go here: ==> Prosper

You could certainly expect to earn near 10% interest lending to other people instead of 1% lending to your bank.  There’s a little more risk, of course, but there’s ways to eliminate most of that, as you’ll see in the review I posted in the link above.

And if you’re not in a position to lend money to others, obviously a lender needs borrowers, so yes, Prosper also allows you to borrow money.  For every borrower there are a bunch of lenders, actually, as you’ll see in the review.  Since the lenders don’t have those huge buildings with all sorts of employees and big lobbies, it’s cheaper to borrow money, and more attractive to lend money.

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