It is always hard to save and invest at the same time, especially when you have no strategy or help on how to. So where do you start? Do you invest all your savings into one fund or wait until you save a bit more to invest in a few companies? It is a hard decision to make at the best of times, let alone when you are young and still learning of the financial world.
There is now a new app called Acorns to help you with both saving and investing. Acorns is a new automated investment service which allows you to invest your spare change into exchange traded funds (ETFs), a little like an electronic coin jar. It is a simple to use app that links your debit or credit cards to the app, where you round up all your purchases on that card from 5c to $1. So say you spent $4 on a coffee, an extra $1 would also come out of your bank account and be invested into Acorns. You can also set up reoccurring deposits to help with your invested funds and savings.
Acorns has five different portfolios you can invest in. Ranging from a conservative fund which focuses on preservation of capital and low levels of volatility to an aggressive fund which focuses on providing investors with capital appreciation and a higher return. During the setup of the app, Acorns will ask detailed personal questions to find the most suitable option for you.
Once the app is set up you don’t have to think about it again. Your balance in the app will continually grow and your investments will grow with it. It is a great way to start investing and learn about the financial world.
By: Conor Hilton