3/2/2024 0 Comments Acorn investment similar apps![]() In today’s post, I’ll walk you through my version of Acorns and how I get the same results without paying any fees. Luckily, there is a way to make your own version free version of Acorns simply by using two Fintech apps that both cost nothing. But Acorns doesn’t market itself towards the financially savvy – it’s marketed toward the new investor who likely doesn’t understand how much a seemingly small, $1 per month fee can be when you’re investing small amounts. The more financially savvy of us will recognize that this isn’t a good deal – an account with $1,000 will pay 1.2% in fees each year a $200 account is looking at 6% in fees each year. Many will probably have accounts with less than $1,000 (a simple Google search suggests that the average Acorns account size is somewhere in the $200 to $300 range). The vast majority are probably going to have accounts with a few hundred dollars to a few thousand dollars at most. $1 to $5 per month doesn’t seem like much, but consider that most people using spare change investing apps likely aren’t going to be investing with large balances. In exchange for their service, Acorns charges users a small fee – currently, $1 per month for the Acorns Lite plan, $3 per month for the regular Acorns account (which includes IRAs and a checking account), and $5 per month for the Acorns family plan (which adds a kid’s investment account). I think it’s simply too expensive for what it does. There’s just one big problem with Acorns that makes me shy away from recommending it. In other words, it’s a big player in the world of fintech apps. Acorns is currently valued at $860 million and manages over $1 billion in assets. The public and investors seem to have noticed that this is a good idea too. ![]() Indeed, when you save small amounts like this, most of the time, you won’t even notice that you’re saving money. A microsavings or micro-investing app like Acorns solves this problem by making the saving process pretty painless. I think these apps solve a major problem that comes with saving, mainly that it’s often really hard to get started. I love microsaving apps – in fact, they’re an integral part of my money system. It’s like a digital version of your spare change jar, with the added benefit of investing your spare change, rather than having it sit there doing nothing. Acorns will round up that purchase to $2, pull $0.50 out of your bank account, then invest that $0.50 for you. Say, for example, you buy a cup of coffee for $1.50. Whenever you make a transaction, Acorns rounds the purchase to the nearest dollar, then saves that extra amount for you and invests it in a diversified investment portfolio. The app then monitors all of your transactions on those cards. You link your credit and debit cards to Acorns. It’s what you’d call a micro-investing or micro-savings app. One popular fintech app that I’ve never really promoted on this blog is an app called Acorns.
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