One of the first things I did once I finally decided to start saving for me again was… investing.
At the time, I didn’t have much free cash. Still paying down a mortgage, still paying lawyers, buying furniture, paying down debt, and paying bills, re-building up my life, I couldn’t do much.
I wanted to save, and not only that, since my savings account interest rate was a deplorable 0.01%, I actually wanted my money to do something. That is when I found Acorns. Named like the squirrel hording nuts to eat over the winter when there is snow everywhere and no food source is available to supply more nuts… save them.
Acorns is micro-investing. It’s free to sign up. And you will get $5* for signing up while they are running a promotion. Here’s the cool thing, you link one or more accounts to the service like credit cards, bank accounts, etc., and it will monitor the transactions on each. It will then round up your transactions to the next dollar, and the difference gets deposited to Acorns. When you hit $5, it is invested.
So if you buy a coffee for $2.49 with your debit card, Acorns takes that $0.51 cent roundup and transfers it from your main linked checking account. This goes for any linked account, but it always transfers from your main linked checking account (which you specify). So if you buy gas with your credit card for $33.91, Acorns will transfer the $0.09 roundup from your checking account. Easy, huh, and you really didn’t have to do anything? It’s like Bank of America’s Round-Up savings, except in this case, you are investing it, and it’s making more than 0.01%. A lot more.
You can withdraw at any time without any fees. The only fee is a $1 a month service charge. Once you have hundreds or thousands in there, $1 is not much at all for what it does for you. I have been using the service, and dump a little extra in when I can, and using their Aggressive profile (there are several portfolio types, from Conservative to Aggressive). Since I am trying to make as much as possible, and since this is money I am trying to not even think about, I went with Aggressive, and it has earned me about 5% over the past year and a half of using the service. That is my money working for me.
So, give it a chance, and see if you can store away some additional Acorns to save for yourself.
*FYI – Both you get $5 and I get $5 once you invest some money into Acorns if you use my referral link.