That’s pretty doable, right?
Acorns, a new smartphone app, wants to help give you the nudge to invest. They round up your spare change from purchases you make and invest it in ETFs.
This is quite possibly my favorite idea for newbie investors to get started.
Let’s take a look.
Investing Your Spare Change with Acorns
Link up your debit card, credit cards, and checking account to the Acorns App and Acorns will automatically round up your transaction to the nearest dollar and invest it for you.
Let’s say that you went to pick up your dry cleaning and paid $9.73 with your debit card. As long as your debit card is linked up you can have the $0.27 difference invested for you.
And the best thing is there’s no minimum balance!
Where Will They Invest My Money?
When you first sign up with Acorns you’ll be asked a series of questions so that they can get to know your investing personality. They’ll suggest a portfolio for you, although you have the final say.
Your money will then be invested into six different ETFs. You can change your portfolio allocation at any time.
What are the Fees?
Once your investment balance goes above $0 Acorns will charge $1 a month and 0.25% – .50% of your investment annually.
How Do I Get Started
To get started with the Acorns app you’ll need to have a smartphone running on iOS 7 or 8 or an Android device running on 4.1 higher.
You’ll then download the app create a user name and password, provide personal information to set up your investing account, and link up debit cards, credit cards, and checking accounts. You’ll also need to link an account specifically to fund your transactions.
Does Saving My Spare Change Actually Matter?
Yes, it does. Especially if you’re not currently investing your money anywhere else.
Your change can add up to a significant amount over time (say, decades.) But even better is the fact that you’re getting into the habit of putting money away for the future.
In addition to saving spare change Acorns also allows you to add or withdraw lump sums without a fee or automatically make deposits each month. (There is a daily deposit limit of $10,000 at a time.)
Is the Acorns App Right for Me?
Well, that depends. Are you leery of investing in the stock market? Are you working with a tight budget? Are you new to investing? If your answer is yes to any of these three questions then yes, the Acorns app could benefit you.
Personally, I love the concept. Acorns is taking investing and making it simple and actionable.
What do you think? Do you like the concept of investing spare change?