Savings and Micro Investing Made Simple
I’ve recently been using the Acorns saving and micro investing app and I have to say, I love it. I think if you get on board now, it will be one of those decisions you really thank yourself for in the future. If you want to have a look at it, you can click this link: Acorns Savings and Micro Investing App or through the image. It should take you to the app store of your phone.
So why am I enjoying it so much? There are a number of reasons which I’ll document here.
Automated – No Effort Savings
Firstly, I hate trying to save money. Despite years of effort, I just don’t have the discipline. What I have tended to do myself in the past instead of saving, is to borrow money to invest, then try and pay off the debt. That’s the only way I can force myself to build wealth. Obviously though there are costs and risks involved with such a strategy like this that are over and above just saving.
What this app does really well is help every day people like me save some money. It does this by looking at the daily purchases I make on my credit card. It then automatically rounds up these purchases to the nearest dollar, takes the change and saves it on my behalf. So for example, if I purchased a coffee using paywave on my credit card and this cost me $4.75. This app once set up to do so, would round up that purchase to $5.00, take the $0.25 change and put it in a savings account. It does this with all authorised purchases. So the cents quickly start to add up.
The thing I really love about this method of automatic savings is that I don’t have to go and find the money to save. It just happens. I don’t see the money at all. The system works really well for me as it just saves for me without my ability to disturb the system, dip in and go and spend the savings.
Investment – Micro Investment – Portfolio Direction
The next thing I really enjoy is that the app uses micro investments. You don’t have to save thousands, or even hundreds of dollars to invest in anything. The app itself invests your money every time $5.00 or more is saved from your round-ups. This is really cool as it means you are investing every month. And again, you don’t have to do anything yourself to make this happen.
There are a bunch of benefits with this type of investing such as dollar cost averaging, the point of this post though is not about investment strategies, its about the app. So I’ll leave that discussion for a different time.
The app does offer a number of different risk exposures in the investment strategies too – you can set your own risk tolerance based on your expectations for portfolio growth and the risks you are prepared to take. Myself, I enjoy a portfolio that is slightly riskier than an average portfolio, but not too wild.So this is how I set mine up.
Other App Features and Savings Ideas
The app has a number of other features also that can help you get better results. The main one is a thing they call “Found Money”. What the guys at Acorn have done is developed partnerships with a bunch of retail businesses so that when you shop with these businesses, they rebate some of your spending back into your savings and investment account. That is super cool hey. It means not only are you getting discounts over the prices you’d usually pay, but these savings are actually re-invested back into your savings plans.
Oh yeah – before I forget, like any other savings or investment product, you can lump sum invest and set up deliberate regular savings plans.
All together, I think Acorn and this app is extremely innovative and has the potential to help so many Australian’s to really improve their financial positions. I’m really looking forward to seeing how my savings and investment portfolio grows with them. Obviously these are my opinions and this blog post is not intended at all as investment advice. Its simply a positive review of an app I’ve been really enjoying this year.
Here is the link again if you’d like a closer look: Acorns Saving and Micro Investment App