Invest Your Spare Change on the Acorns Investment App

A friend of mines put me on this app called Acorns recently which is an app that allows you to invest literal spare change into the stock market so that hopefully one day you can become Warren Buffett rich…well not really.  But maybe you can earn enough money each year to probably pay for Christmas gifts without racking up unnecessary debt on your credit cards.

Anyways, how the app works is relatively simply.  You sign up for the app on your smartphone & link a bank account & credit/debit card to their app.  You then answer a few questions about your investment goals, from there the app places you in 1 of 5 investment categories ranging from Conservative to Moderately Conservative to Moderate to Moderately Aggressive to Aggressive.  All that means is, if you are on the conservative end of the spectrum, you’re not really much of a fan taking risks with your money so the portfolio of stocks the Acorns app invests into on your behalf will have the majority of your money going into long term stocks that have a history of slow steady growth which as a result produces slow steady profits.  If you are on the aggressive side of the spectrum, that means you don’t mind taking risks with your money because the rewards are often times much higher…but so are the potential losses.

One thing about this Acorns app that I don’t want to confuse people on is that this app is not stock market app where you can purchase individual stocks like you would from a traditional stock brokerage.  This app is pretty much a money market account type of app.  For those of you unfamiliar with money market accounts, they are essentially accounts that you can deposit money into where your money will be pooled together with countless other people where some mystery person or entity invests your money in the stock market on your behalf.  Another thing about money market accounts is, you can put in money or take out money at your leisure for the most part.  Say for instance you decide to drop $100 into your money market account but a week later you need $50 for something and you just don’t have $50 on you.  Well, you can subtract $50 from your money market account and move it to your checking and/or savings account often times with no penalties.  Another way to look at a money market account is to view it simply as a savings account that produces a higher yield.  I’m not sure what the average percent of return is on the average savings account, but it isn’t much at all.  A money market account produces much higher returns on average compared to a savings account (depending upon how much money you have in the money market account of course).

But anyways, how the Acorns  app works is extremely simple.  After you create an account and link your bank account(s) & debit/credit card(s) to it.  What happens next is, you go about your business living your life like normal making your everyday purchases on goods & services that you would normally make.  What the Acorns app does is, it rounds up every purchase you make on your debit/credit card to the next whole dollar and then deposits that change into an Acorns account.  Once that Acorns account reaches $5 from the accumulated change, it then takes that $5 and places it into the stock market via their money market account to where you can begin to earn money literally off of your spare change by investing in stocks.  It’s really that simple.

Ex:  You spend $5.50 on some product.  The Acorns app rounds that purchase up to $6.  It takes the 50 cent difference and deposits that 50 cent into an Acorns account under your name.  Once that account fills up to $5 from collecting all of this rounded up spare change, Acorns then puts that money into a money market account to invest so that you can begin to earn money over time from that spare change.

That’s literally how simple this app is.

Another thing you can do with this Acorns app if you want increase the money you invest, you can either setup one-time deposits of an amount of your choice to go into the money market investment pool in conjunction with the app collecting your rounded up spare change or you can set the app up to deduct an amount of your choice on a monthly basis to be added to your money market in conjunction with your rounded up spare change…or you can do both.  It’s your choice as to how you want to utilize this app.

But the bottom line that I want to stress to you is that, just think of this as another way to earn some money from doing something that you are going to be doing anyways…shopping.  You are going to forever go to the grocery store or shop online to buy everything from luxury items to basic bare necessities.  All this app does is round up your purchase to the next whole dollar and deposit that change into an account on your behalf to be used for stock market investment purposes later on.  You don’t have to be a Wall Street stock market guru to figure this app out.  You don’t even have to actively watch this app as if you are a day trader on Wall Street.  You just literally set it and forget it, until you decide to open up the app to see how well your spare change is performing on the stock market.

So for those of you interested in signing up for this app, I’m going to give you my referral code to sign up.  This code does 2 things:  MY REFERRAL CODE

1. By using this code, Acorns will deposit $5 into your Acorns account to get you rolling.
2. Acorns will also deposit $5 into my Acorns account for referring you.

Once you get up & running, you will then see options on the app for your own referral code that you can send to people as well so that you can collect $5 referral fees.

So anyways, I personally use this app and I haven’t had any issues with it.  Like I stated, this app literally collects rounded up spare change and invests it into the stock market on your behalf.  You don’t have to be educated on the stock market at all.  It”s literally your spare change being invested over time to where you can hopefully make some decent spare money off that change.

Don’t forget to click on MY REFERRAL CODE.  Thanks.

PS:  The app only charges you $1/mo.  Once your account reaches $5000 or higher, the app then charges you $0.0025 on those funds which is $12.50/yr or higher.