Jun

20

How could an individual become a millionaire by lending?

Filed Under Investing 

AO099


I’d like to become a millionaire and I believe that through the advancement of microlending and the internet this may be possible. For example, Prosper.com or Zoda.com.

Through Prosper.com, can you explain ways to become a millionaire with little or no money? Can you explain ways to become a millionaire via this new resource?

Comments

2 Responses to “How could an individual become a millionaire by lending?”

  1. jduck1979 on June 22nd, 2011 4:21 am

    The only way I can think of (and I lend via ZOPA.com myself), is through lots of time & patience.

    I’ve been investing via savings accounts since 1988, and in shares (both real via Halifax SHAREBUILDER + fantasy games) since early 2005, and the one thing I’ve realised is to earn lots of money by investing, you first need plenty of money to invest to start off with……. as the more you have invested, the larger amounts in interest you earn on it.
    For example, in a savings account that earns 5% a year on it (just to keep the maths simple):
    £5 + interest = £5.25
    £50 + interest = £52.50
    £500 + interest = £525
    £5000 + interest = £5250
    £50,000 + interest = £52,500

    So, I guess the best chance of becoming a millionaire is invest what you can to start off with, then adding what you can to that each month so the amount you’ve got available to lend out (and earn interest on) keeps on building.
    This savings calculator should give you a rough idea of this theory:

  2. tsbr1963 on June 25th, 2011 8:03 am

    There are a million ways to earn a million dollars. Lending, borrowing, speculating, trading, making things, giving services, etc.

    How would one lend to become a millionaire? Well, it comes down to a return on your money. Lend at high rates, make more. Lend at low rates, make less. Take risk into account, and off you go on your way to making money.

    Microlending is terrific vehicle for increasing third world productivity. There are private funds available that do this, bank deposits that focus on this, and of course direct lending. It is tantamount to the old “teach a person to fish…” adage. I think it has incredible potential….