Some of you may not have a job that offers 401k/retirement. Some of you may be like I am and have 401k but want to be a little more proactive without committing a large sum of money for funding a separate account. Or some of you might just need to hide money from yourself to save up for something you want.
Whatever the case may be, I ran across this little app called "Acorns" and decided to give it a try. Way more information can be found elsewhere so I'm just going to give my $0.02 and you guys can do your own research.
What is it? It's a savings app that links to your debit card or PayPal or whatever you want. It "rounds up" each transaction to the nearest dollar and then buys a small piece of a mutual fund (ETF) with the money. This might sound familiar as I think BofA does it, but they just put it into a savings account.
I use my debit card a TON so I linked it to that account. I've been doing it for almost a month and I have to tell you, it's a lot of fun to watch it grow and track the progress. There are five or six funds to choose from ranging from super safe to very aggressive (that's the one I chose).
WooHoo! I'm rich, bitch!!
That's the home screen and tracks your account. Like I said... it's been about a month.
This screen tracks the market during the day. The gain/loss is a little misleading since it includes a roundup deposit.
Net gain/loss of my whole account. 1% doesn't sound like much- and it isn't, but considering the average APR of a savings account is 0.06%, it's better off here than it is in a savings account or piggy bank.
Every time your roundups get to $5, it buys another chunk. This is where you can track your roundups and whatnot. You can basically see all of your linked account activity here. Note: I started with a $20 investment, but you don't have to.
Aaaaaanyway... I'm having a blast with this little app. I've never had so much fun watching pennies. Could you retire using this app? I guess. But it's more about just getting started and introduced to saving/investing.
It costs $1/month to manage your account, but it's free to deposit or withdraw. If you use your card a lot like I do, the $1/month isn't all that bad. Any less than 10 bucks per month and you're likely just going to be moving backward.
For those that think this one is too boring, there is a very similar app called "Lawnmower" that does the same exact thing, but invests in BitCoin. WooHoo! That might be fun since it's so volatile.
If you don't want to "invest" at all, there is an app called "Digit" that is basically just a virtual piggybank that is all done through text messaging- which I think is awesome.
Whichever one you choose, they are all great ways to set aside money for that amp or sub or alt or whatever. Because I know myself... I have to hide money from myself or I'll spend it.
So, get to saving!