I’m Micro-Investing With Acorns — How It’s Going So Far

Is this investment app right for you?

Have you heard of Acorns? It is a micro-investing app that makes it easy for the millennial generation to get started investing. It works by connecting a bank account to the app and then it rounds up all of the purchases you make with that bank account to the next dollar and invests the difference.

For instance, say you go to the grocery store and spend $16.25. Acorns will then round up to $17 and take the 75 cents and invest it. If you do that over and over, it quickly adds up to some big savings. By far, the easiest “set it and forget it” way to get started investing that I have seen.

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How Has It Been Going for Me?

I have been using the app’s round-up feature to increase my investments over the last two months. When you sign up, they give you a few basic investment choices based on your risk tolerance, and I chose the conservative option. As such, I haven’t seen much in the way of gains so far, but I love knowing that my “spare change” is getting invested and has the potential to earn me more money. Simply put, it is the easiest way I have found to start investing with no money.

I also love how I can see where my money is invested in and that it gives a pretty detailed analysis of the investments. The fee to use the service is only $1 per month, as well. They have done a masterful job of creating an app that makes it simple, easy and fun to invest.

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The Downside of Acorns

The critics argue that the flat $1 per month fee is potentially a very high percentage for those who don’t invest much each month. For example, someone who only accumulated $50 of round-ups in a given month would essentially be paying a 2 percent fee. While that is high (and could be even higher) as a percentage, it is still only $1. As your balance grows, that percentage will just get smaller and smaller. So, personally, I don’t consider that to be much of an issue.

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Will I Continue Using It?

After using the app for the last couple of months, I absolutely love it, so it will definitely keep a spot in my top 17 financial tools. As with any investment, it will be interesting to see what happens when the market takes a turn and how my conservative portfolio fares with it. I will re-evaluate at that point, but until then, I can safely say that I am a satisfied Acorns investor.

Read More: My Warnings For People Considering Free Investing Platforms

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