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Thank you for visiting our site. This site is a personal journey of Charlie & Grace and how we're trying to break the shackles of debt by budgeting, being frugal and using the debt snowball method without compromise. We're both in our early 30's, working professionals, and parents to a 14 month toddler, 5 year old lab mix and another baby on the way!

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Wednesday, March 19, 2014

Automatically invest your spare change? Yes, please!

So I came across this new app which is still in beta and you need to sign up to get on their waiting list.  Acorns, Invest spare change automatically from everyday purchases into a diversified portfolio.  I think it's a genius idea and can't wait to try it.

The idea behind it is very simple.  I'm going to assume that you need to connect the service with your checking account and credit card.  Every time you make a purchase, it'll round up to the next dollar, and the amount rounded up will automatically be invested in a diversified fund.  I'm also going to assume that it makes money by charging a fee to manage your portfolio like any other investment out there.

The good thing about this is you'll be constantly investing without even knowing it or even feeling the pinch of having to come up with upfront capital.

I'm a huge fan of the set it and forget it method of building wealth and this is exactly what it does.

6 comments:

  1. Interesting! I would be curious if there is an upfront deposit that needs to be made, and what the fees are. But most people would probably end up investing at least a few dollars a day.

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    1. Few dollars a day over the next 20-30 years? That will surely add up.

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    2. Just in our purchases for today (gas, and something at the grocery store my husband needed to bring to work), we are up to 87 cents!

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  2. Guessing it would be fractional purchase of shares? I don't know, I think I would be better off just sending 50 to my broker every month and buying something with it.

    HS

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    Replies
    1. True, or automating your ROTH IRA to max out yearly contributions. This is just icing on the cake. When they invite me to try it out, I'll definitely keep you guys posted and write my experience about it.

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  3. It's an interesting idea, if you buy things often enough. I only make a few purchases every 2 weeks (maybe 3-5?), so it'd be small. I had BOA do that once, to round up and transfer the difference, but it rarely amounted to anything.

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