Written by 1. Acorns and Stash
Sarah, a recent college graduate, wants to start investing but has limited funds. She downloads Acorns, a micro-investing app that rounds up her everyday purchases to the nearest dollar and invests the spare change. Over time, these small amounts add up, and Sarah sees her investment grow. Acorns also offers a feature called Found Money, where certain purchases earn her additional investment contributions.
How to Do It:
- Download the App: Choose a micro-investing app like Acorns or Stash.
- Link Your Accounts: Connect your checking and credit card accounts to the app.
- Set Round-Up Preferences: Customize how much you want to round up and invest from each transaction.
- Explore Additional Features: Take advantage of features like Found Money (Acorns) or stock-back rewards (Stash) to boost your investments.
2. Growing Small Investments
Mike, a schoolteacher, uses Stash to start investing with as little as $5. Stash allows him to buy fractional shares of stocks and ETFs, making it easy to diversify his portfolio even with a small initial investment. Mike also appreciates the educational content within the app, which helps him learn about investing as he goes.
How to Do It:
- Start Small: Invest small amounts regularly to build the habit of investing.
- Diversify: Use fractional shares to invest in a wide range of stocks and ETFs, reducing your overall risk.
- Educate Yourself: Utilize the educational resources provided by the app to improve your investment knowledge.