One of the biggest barriers, I find, to most people starting to invest in their future is that they feel they need a large sum of money to get started. This isn’t true. You can open a savings account (the first investment most people begin) with as little as $1 but Acorns has made it even easier – they will help you invest your spare change.
Acorns is an app. You put it on your phone. You link it to your bank account. When you have spare change. You invest it in a communal pool with Acorns.
If you’d prefer you can set up a regular cash amount to go in this pool.
They also offer cash back from over 200 top brands. If you take the cash back – you can put it into your investment pool. This earns more money in the long run.
You can get $5 for referring a friend to Acorns too. That can be invested in their micro-investments as well.
Getting Your Money Back
Acorns is also a checking account. When you start saving with Acorn they offer you a debit card so that you can withdraw or spend your money whenever you want. No waiting around.
In effect – Acorns is a checking account that pays interest and allows you to put as much or as little into that account at any moment as you want. Then it lets you take it back whenever you want too.
To use Acorns there is a monthly fee. This starts at as little as $1/month and rises to a maximum of $3 depending on all the services you use. This is important because you need to ensure that your overall balance is earning enough interest to cover those fees. I think Acorns works best when you transfer your whole salary into it and you use it as a checking account.