So if you have not heard already there is this amazing app out called Acorns. No, it is not a squirrel version of Angry Birds. It's an investment tool that you can install right on your smartphone. What makes Acorns better than the other investment applications out there is its unique features. The way Acorns works is it links your credit card, debit card or electronic payment platform to an ETF account. Each purchase you make on your linked payment gateways is rounded up to the nearest dollar and the spare change is invested in to your ETF account. An ETF fund is an exchange trade fund (ETF). Essentially, it is a basket of stocks, bonds and other commodities.
When you download the app, Acorns will ask you a series of questions and make a suggested investment track. The options offered are on the following spectrum: Conservative, Conservative Moderate, Moderate, Aggressive Moderate or Aggressive. Each carries it's own set of risk/reward - (Conservative having the least amount of risk but low reward and Aggressive having the largest risk but higher reward). Once you select your desired level of risk/reward you will be prompted to link a card or payment gateway to the account. Payment gateways may be direct bank accounts or electronic payment services like Paypal. If you use it to make purchases, then you can probably link it to your account.
Then the magic starts. Each time you make a purchase from one of your linked accounts, it rounds up each purchase to the nearest dollar. The "round ups" are bundled up into increments of $5 and withdrawn from your account and are invested the ETF fund where they earn dividends based upon your risk/reward section. What's so great about this app is that you are likely to make more interest on this account that you would in a savings account, where you'd make 0.05% interest. The beauty of this app is that you are saving money without having to think about it by using the auto-round up feature.
Acorns does charge $1 each month for the use of the app, but that's a small price for the benefits you receive from its services. You can also unlink cards, add new ones, enable or disable auto-round ups, withdraw cash or make lump sum or reoccurring investments with ease. For a more detailed review, check out this video here.
Acorns is changing the way you invest and makes it easier to invest and save your money. Being able to save and invest without think about it daily is an amazing and innovate approach to financial success. I've been using the app for the last 5 months and it has resulted in $100 profit for me from just round ups. Obviously, I'm a big fan. If you're interested in downloading the application and using it, feel free to download it here. This link will add $5 to your account once you open it! Enjoy and happy saving!