Thier has been a rise in investment apps for beginners. These apps appeal to those who have an interest in investing but not sure how or where to start. Apps like Acrons, Stash and a few others take the guesswork out of investing. They ask you a few simple questions and give you suggestions on investment funds to go with that match your answers. So if they both do the same thing what makes them so different? Should I just download both and use them collectively or go with the crowd?
Here is my 2 cents on this…
Acorns is an investment app that allows you to take “Loose Change” from Debit Card purchases and invest that money. For example, if you make a purchase for $10 on an item and the tax is .80 Cents that gives you a total of $10.80. What acorns will do is round the charge up to $11.00 flat and use the .20 to invest. This can add up extremely fast if you use your debit card for the majority of purchases.
Another great thing Acorns does is allow you to auto-invest. You can invest as little as $5 per Week, or Month. Again this isn’t going to get you retirement ready but could be a nice rainy day fund. Think of all the money you have spent over the last 12 months from your debit card. Christmas Gifts, Birthdays, Anniversary’s, Impulse buys, groceries and much more. Imagine if you were doing .25 for every purchase. The average person makes over 100 Debit Card Transactions per month. Breakfast, Lunch, Dinner, Groceries, Bills, Gas, all those purchase some like food even daily in a 30 day period adds up.
If you are someone that buys Breakfast, Lunch & Dinner every day for work that’s 3 transactions alone per day x5 days = 15 x 4 weeks is 60 Transactions. If you were to round up around .25 cents per transaction that is $15 per month or $180 per year. Doesn’t sound like alot but if you take over the course of the last 3 years of transactions and add .25 to each you could see alot in your savings account. Then you take into consideration the investment fund you go into depending on your return that could turn out to be around $200+ per week JUST ON FOOD TRANSACTIONS.
Stash is also an investment app that allows you to invest extra cash into ETF (Exchange-Traded Fund). An ETF is an investment fund that trades just like a stock. It includes multiple stocks, bonds, futures and other valuable assets in one fund. The return of your investment of this fund depends on the performance of those assets. Individuals that are invested in these funds are getting a portion of the proceeds from point of sale or liquidation.
Stash asks you a series of questions and from those answers gives you ETF’s that fit your investment needs. What differs Stash from Acorns is you can’t use the drip content of rounding up purchases automatically. Instead, they allow you to setup auto-investing for the fund(s) you choose which gives you gains. You can set up as little as $5 per week or as much as you want. The returns are much better than most savings accounts and the risks or somewhat minimal.
Stash does charge a monthly fee of $1 until your account reaches $5000 or more. Then you’re just charged a fee of .25% of your account balance. Like Acorns Stash is not the way to riches and glory. But it does give you another investment vehicle that takes the guesswork out of investing and allow your money to work for you.
If you would like to download this app. Use my Stash Link and get $5 invested into your account upon setup.
Both of these apps are groundbreaking. Many people avoid investing because they don’t understand the concept or cannot stomach the risks. With Acorns & Stash the eliminate the intimidation of investing and minimizes the risks with using ETFs. I would say both are definitely worth getting into for some extra cash we spend on unnecessary things anyway. I use both now acorns I have my debit cards set up for auto round up and stash for auto investing. I am enrolled in two separate funds on both platforms to diversify the little bit of money I do allow to go in their.
I hope this minimal approach to showing the difference between both platforms helps you. Thier isn’t much to think about with these two platforms as your risks are minimal and experience you need to invest is little to none. Let me know your thoughts below on these two apps.