Investing even a small amount of money, but on a regular and consistent basis is a great way to help you grow your finances and take you a step closer towards achieving financial independence early on in life.
But in reality, saving money and securing good investments is easier said than done. Not to mention the complicated process of investing money into stocks, bonds, or any other type of assets that is just not easy to comprehend for the layperson.
Fortunately, there are convenient and easy-to-use micro-savings apps that can help you develop a good investment habit without the piles of paperwork that you usually have to deal with in traditional investing. Acorns is an investment app that can help you grow your money by diversifying your investments in over 7000 ETFs (exchange-traded funds).
It only takes a few minutes to set up the mobile app and link to your bank account. Learn more about the five tips in using Acorns and maximize your potential to grow your investments easily and securely.
1.Know the different options that you have when investing your money
Using Acorns, you have three different options that you can choose on how to invest your money. The first option is making a deposit with a one-time investment. The second one is investing a fixed amount to ETFs each day, week, or month. And the third and most popular option is the micro-investment strategy.
For every purchase that you make using the Acorns app, the value is rounded up to the nearest dollar. And the savings amount will automatically be added to your total investment capital.
With other investment platforms, you need to deposit at least a thousand dollars and complete tons of paperwork before you start reaping benefits from your passive income.
2.Choose your preferred strategy for your portfolio
Acorns offers five different portfolio strategies (how the asset classes are split) with increasing level of risks: conservative, moderately conservative, moderate, moderately aggressive, and aggressive. Choosing a strategy depends on your own risk tolerance and the timeline for your investments.
3.Earn more with Found Money
There is also another way to get extra money with Acorns using the Found Money feature. By shopping with retail partners using the Acorns app, you may earn a fixed reward or a percentage of the amount that you spent. As of now, there are already more than 130 partners and counting.
4.Get access to Grow Magazine
As stated before, Acorns is simple to use and you can start investing right away. Additionally, Acorns charges a flat $1 fee per month for accounts with less than $5,000 or 0.25% of the total investments otherwise. Students with valid .edu emails will get zero fees for full four years.
This is more than a reasonable price for a secure and easy investment, as well as for a free access to Grow Magazine, a publication that can help you improve your knowledge of finances.
5.Increase your investments by referring other people
Another way of growing your investments is by inviting your friends and families to start investing with Acorns. You and your referral will get $5 each after a successful first investment. Acorns also rewards users that are able to reach a target number of referrals for each month.
If you ever decide to use the app, make sure to invest wisely and responsibly. Do your own research and read valuable insights including Reddit’s view on Acorns investment app.