Acorns: Save Money Effortlessly with THIS App:
Introducing the Acorns app
Let’s talk about saving money! What for? Whatever you want!
- A family vacation
- A designer hand bag
- A down payment for a mini van (ThriveMomma can WISH)
- A rainy day fund (not glamorous but practical nonetheless)
Saving money is tough. It takes effort and it takes planning. College, retirement, downpayment on a house, all the fun stuff I mentioned above, etc. It can get overwhelming quickly and, I don’t know about you, I’m already living life in an overwhelmed state 53% of the time. I totally recommend putting forth the effort to develop a clear strategy for those MAJOR life savings goals but what about the little goals I mentioned above? It’s so easy to skip the plan and find yourself incurring debt when you want to go on vacation or when you need a new car.
This blog discusses the EASY strategy that our family employs to save for these smaller savings goals: Acorns.
Here’s something fun —
Thanks to inflation, cash and money in savings accounts will be worth less next year than today. Yep, that’s right. The money you have stashed in the bank is actually a drain on your savings. Talk about holiday cheer *slash* not. at. all. Investing offers the best bet for growth over time but, let’s face it, it’s super intimidating and risky if you don’t know what the bleep you are doing. There aren’t many mommas out there (that I know at least) that have the time or requisite knowledge to design and maintain their own investment strategy and financial advisers and trading fees get expensive fast.
What’s a girl to do?
Start using the Acorns app… like NOW. ThriveMomma and ThriveDaddy have used this app for years and with it we’ve saved for a number of things along the way with ZERO effort:
- Redoing our kitchen cabinets (fun!)
- Unexpected car problems (lame!)
- Annual Nanny bonus (neutral!)
First things first — what is Acorns:
Acorns is an investment app that lets you automatically invest spare change from debit and credit card purchases. Acorns connects to a debit or credit card to “round up” the spare change to the next dollar on all purchases (i.e. your coffee at Starbucks costs $3.71. Acorns rounds that purchase up to $4, investing the residual $.29. Bam! You’ve just saved money completely effortlessly). Once your total roundups reach $5, Acorns withdraws the money and invests in a personalized stock portfolio.
Acorns takes the guess work out of picking funds — you answer some questions to determine your risk tolerance and that’s that. Acorns doesn’t take a commission either!
Check out this YouTube Video for more details: Intro to Acorns
Why I LOVE Acorns:
- Ease of use: After the initial set up (which is a breeze), it takes NO effort to put this savings plan into action. I automate all sorts of areas of my life. Why not automate how I save money too?
- Liquidity: This isn’t like a 401K that you incur huge penalties on if you draw on early. While investing generally works best if you keep money IN the market, you can withdrawal your money with a couple of clicks and in a handful of business days. NO fees! No penalties!
- Flexibility: In addition to the “round ups” method of adding to your savings mentioned above, Acorns also provides the option to transfer a fixed amount to your Acorns investment account at predetermined intervals. For example, I have a setting where Acorns pulls $50 a month from my bank account to my Acorns account. The best part – I don’t even notice that this is gone! That’s $600 a year in savings that I don’t think twice about.
- Returns: Any idea what your checking and savings accounts are earning you? Well here’s a kick in the shin, it’s minuscule, negligible. Life to date, I’ve earned 7.19% on my Acorns account and that’s considering the fact that the stock market is in complete shambles right now. I’m not looking to retire off $.29 cup of coffee round ups but a 7.19% return is nothing to sneeze at and it’s a heck of a lot better than that money sitting in what is essentially a 0% interest account.
- Found Money: Acorns has partnered with certain vendors in what is called their “Found Money” program. Example: Sephora. Click on the Sephora link through Acorns and you get 3% of your purchase back and deposited into your Acorns account. Legit Found. Money. There are a huge variety of vendors included in this program: Lyft, Hulu, Amazon to name a few.
- Learning: There is a section of the Acorns website called “Grow Your Knowledge”. It is a WEALTH of resources to help you better understand investing and the stock market.
In summary, we are huge fans of Acorns in the Thrive household. It’s provided a valuable source of savings a couple of times for us and, again, it’s SO easy!
Happy Savings Thrive Community!
Sign up for Acorns HERE