Investing has always been something that made me nervous. It all seemed too complicated and far beyond my math comprehension. Technically I shouldn’t even be worried about investing right now because we are still working to pay off our debt. However, there is an investment app that just seemed too simple to pass up. Acorns is a spare change investment app that rounds up your purchases to the nearest dollar and then invests that money for you! If you have wondered as long as I did about how Acorns work and whether or not it’s actually worth it, I have it all laid out here for you. Plus, I will show you my personal slow-start simple investment plan to turn $50 per month into $150,000.
*This post contains affiliate links. I may make a commission off any recommendations, but all opinions are my own.
I heard about Acorns spare change investment app about a year ago and since then I have continually researched it. It sounded too easy and the idea of setting up an online investment made me nervous.
Like anything that involves my money, I wanted to make sure that I was making a smart move and that I wouldn’t be getting ripped off. I made sure to do the following before investing:
Like all reviews, some were negative including multiple posts written about the dangers of investing too little. However, a lot of the argument came from the idea that Acorns uses such a small amount of money and your chances of seeing major growth are small.
This is true aside from the fact that you can make larger investments whenever you choose. It doesn’t just have to be a small amount of money that you invest. Acorns is designed to help new investors get comfortable with investing. As someone who has never invested before, that was exactly what I needed.
When you first sign up for Acorns, they will ask you basic information like name, income, social security number, and bank account information. This is where I kept stopping. It makes me so nervous to share this information online. I would enter some information and then stop to research more before I entered anything else.
From the research, I did I learned that Acorns is a highly trustworthy and very secure network. I still waited.
Once you have signed up, you then have the option to choose if you want to invest a certain amount monthly and/or add a one-time investment. You can see here that I did a one-time investment of $25 along with a $50 per month investment. I did the $25 just to get started since we had some extra funds available. I figured if I’m going to try this investing thing, I may as well try to start a little bigger than just spare change.
At this stage you can also:
There are different levels of investing from “Conservative” to “Aggressive” that Acorns allows you to choose from.
What these levels basically determine is the types of investments made. To put it simply, (because I need this to be simple) the more aggressive you get, the more serious types of investments you’ll be making and with larger companies.
After reading reviews, but still being nervous to get my feet wet, I decided to invest comfortably in the middle. You can see my “Moderate” investment here and how all of my funds are dispersed. Hopefully, as I get more comfortable, I will make the leap to more aggressive investing.
So how am I going from investing $50 a month to $150,000? A great motivator that Acorns shows you is your projected investments.
You can view how much you have already made, how much you have invested, and what your future might look like if you keep investing with your current plan.
Here’s what mine looks like so far:
It might seem disheartening to learn that after almost 40 years of investing, I would only be at $154,902 and that’s why some people suggest not even bothering with a small investment app like Acorns.
However, if you take a moment to calculate what would happen if I just saved $50 per month, this is actually a significant growth.
If you’re still not sold on using Acorns to invest your money, there are safer and simpler methods that are still available to you.
If you are new to investing and you are ready to sign up for Acorns, here are a few tips I have to offer:
I hope this helped and if there is anything I didn’t address, feel free to get more clarification by asking your questions in the comments below!