Stimulate Your Financial Circumstance - Try Acorns
Living in California is sublime, it is also pretty darn expensive, too! There’s no getting around it, the rising cost of living keeps charging and it is getting tougher for most folks to save money.
The idea of saving money sounds great. But in practice, most of us find it difficult to squeeze anything extra out of our earnings. Just thinking about throwing a budget together, saving money, investing money (and or) planning for retirement can overwhelm the best of us.
But, what if there was a way to save money without even thinking about it “as well as” without feeling the pinch? Sounds too good to be true? Not so fast, have you heard of Acorns?
Save and invest your money without giving it a second thought. I must be joking or out of my mind, although, I am very serious.
All you need is a smartphone, bank account, and the phone app Acorns. Acorns will automatically round-up all purchases from your connected debit or credit cards to the next dollar and invest the difference in your Acorns account. For example, if you buy a drink for $2.75, Acorns will round up to $3.00 and automatically invest $.25.
Acorns is very easy to set up and it only takes several minutes. Once you’re set up, Acorns will do all the work for you and you can save money without feeling the squeeze or giving it a second thought!
All you have to do is answer a few questions to create a financial profile and state your goals. The app breaks down different options to help you create your personal investment portfolio.
When your account hits as little as $5, Acorns invests your spare change into exchange-traded funds (ETFs) on a recurring basis. Your investments are then diversified across more than 7,000 stocks and bonds “plus” it will automatically rebalance as the market fluctuates.
You can set up recurring deposits of larger amounts, get referral bonuses and earn extra cash to invest by shopping through the app’s rewards program. You can also use the app to open tax-advantaged retirement accounts and set up automatic contributions to them. Once again, these contributions can be small — as little as $5 to start an account.
Acorns fees are $1 per month for all accounts with a balance under $5,000 and .25% of the balance per year on accounts over $5,000. Compared to traditional management, mutual funds, and DIY ETFs, this fee is extremely low. And according to Acorns CEO Noah Kerner “The majority of our customers take advantage of Acorns’ full suite of tools and services, making the small $1 per month subscription quite reasonable.”
***Keep in mind – the app is an investment platform so your funds are not FDIC insured. However, Acorns is Securities Investor Protection Corporation (SIPC) insured for up to $500,000 meaning that if Acorns were to shut down you would be covered for a maximum of $500,000.
Acorns positioned itself as a great choice for those looking to save some spare change while dipping their toes into the waters of investing (IMO). But, if Acorns doesn’t sound right for you at this time, you might consider putting your money into a savings account instead.
A high yield savings account is usually free and will allow you to grow small amounts of money over time. Once you’ve reached a self-imposed threshold, you can revisit the idea of moving that money into an investment portfolio.
Good luck, and here’s to you stimulating your financial circumstance no matter how you choose to save and invest!
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