Business · Personal · Uncategorized

#Investing: Counting my Acorns

Everyone remembers that moment in the beginning of the year when we declared so confidently our New Years Resolutions. Usually around June, I begin to realize I haven’t scratched a thing off my resolutions list. Well, this year is different or so I hope lol. One of my New Years Resolutions was to begin to dabble in investing. Recent life changes have pushed my desire to save and invest to become a priority. This brings to me my “acorns”.

Acorns.jpgI came across this app, Acorns, that allows the everyday person to have money from their debit account/ credit card ( I’ll explain how later) put into an investment portfolio. For a beginner like myself, this is perfect. I have a difficult time saving up money in general let alone putting aside enough to put towards creating an investment portfolio. Acorns suggests an investment portfolio for you based on factors like your age,  desired savings goals, (long term, short term, etc. ), income and more. In my rather beginner’s opinion, I think this app is a godsend to start the average person off.

How does it work?

You have two options for funding your investment portfolio in Acorn. You can do what is called “round-up”. This option connects the app to your debit card/ credit card collecting all of your “spare change” putting it towards your investments.  Let me explain. Let’s say you purchase a bagel for $1.50. Acorns will take $0.50 to bring you to the nearest dollar. This occurs with all of your purchases. This is their advertised method behind their campaign “invest your spare change”. While you aren’t sure to hit it rich anytime soon, this is great for people who can never save as it successfully takes little by little without you “feeling it”.

The other option is setting up one-time or recurring payments. I myself selected this choice to start off with. I wanted to give myself the ability to see some real progress. I decided to start off with $30 this month. Starting next month, I will allow a $10 recurring debit. I am also debating doing the first option as well.

My Review

While I can’t accurately do a “review” on the full capability of the app this early on, I can comment on the process and my hopes. Signing up for this app was easy peasy. Just to be honest with you, there will be a need to provide some personal info such as SSN# so the app can verify your identity and accurately report to the necessary authorities. You will then be prompted to provide your debit/credit card and/or your debit account information. Acorns takes about a day to verify the account. Pending success, you are all set!

Before downloading the app, I saw it was getting some flack in regards that it is unlikely you will really make a “dent” in your savings. Yes, there may be other apps or alternatives that allow you to save money without losing money or charging you fees. Acorns does charge about $1 per month for accounts under $5000. But, I find that an app that simply debits my account to force me to save is not giving my money the chance of growing. For all of that you might as well just sign up for a savings account with a recurring debit.  With Acorns, you get to invest your money while at the same time giving it the ability to grow with the stock market.

Are you taking a chance on making money while “paying to save”? Yes. But, I’d imagine this is no different than if you were to invest with a broker, lose a bit of your initial funds, and still have to pay those who invested for you. That is just the price you pay. At least with Acorn, I know my price is only $1. Worst case scenario, you lose a few dollars but manage to save the bulk of your money. I’m willing to take that chance.

Wish me luck! I’ll keep you guys updated. It is my hopes this gives me a head start on my goals for the year. Hey, it’s just another way for us to make money. Who doesn’t want that?! Maybe you will join 🙂

Smooches

TeeTee

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