Acorns Review Good Way To Invest or a Scam?
People are investing money into the stock market every day. They either have brokers that do this for them, or they personally keep a eye on stocks. The latter strategy is very difficult to do, and make money with, if you do not have knowledge of stocks or the market. Because so many people do not specialize in money management, investment, and buying/selling stocks, they pay someone to do that for them. However, those options can be very expensive. Additionally, those are primarily for people that have enough money that they can choose to allocate some of their savings into stocks to build their wealth.
That leaves the question; what if you do not have a lot of money, and have no knowledge of the stock market, yet still want to invest. Have no fear, Acorns is here. Acorns is a online company that was built to help introduce the younger generation into stocks. It is a very easy process to understand, and you do not have to be fluent in Wall Street lingo to know where your money is going, and how its getting there.
How Does It Work?
Acorns is a a online website that is based out of Irvine, California. They have over 100 employee working for them, all invested in investing your money smarter. The idea of Acorns is basic; round up and invest. How it works is that Acorns tracks your purchases by asking you to link your cards with them debit or credit. They then see how much you spend, and as if you would like to round up to the nearest dollar. There are options on the website to change it so that you it automatically rounds up your purchase to the dollar. Acorns then takes that rounded up change, and invests it for you in multiple stocks and bonds.
For example, if you spend $14.50 on Uber, Acorns will take 50 more cents out of you account, and invest that for you. This term is called micro-investing. It has not been around for a long time, but is gaining popularity as the company grows.
Who's it for?
Acorns is perfect for inexperienced investors, and young adults that want to make some extra money. In todays society, its tough to make money as a young college kids. There are some ways; such as taking part in studies, testing products, and even taking surveys online. However, Acorns offers a new way that is easy and risk free for young, "just getting by" adults. By taking your money out of your account, in small increments, it eases your mind of investing a large amount of money. In addition to that, it is taking money out at the same time as you are spending it. This means that instead of getting a upgrade to a large at Starbucks for 20 cents, you can invest that money to hopefully see it grow.
What's It Cost
Here's the kicker, its free! Well, I wouldn't say free, but its damn near close to it. Acorns charges $1 per month for its service if you have less than $5000 in your account, and .%25/ year for accounts with over $5000. What does that mean? Well, if you have more than 5000 dollars ini you account, Acorns takes a bigger chunk of change out of your earnings.
The next logical question would be; if Acorns only takes out my spare change, how on earth could my account get to $5000 dollars? The answer is: you can put money into your Acorns account. Many times people do this to see how much of a affect Acorns has on increasing their money, by giving the app more capital to work with for investing. This is not necessary, and people still earn money by using their rounded up change.
Are There Any Offers or Promotions? (ie. How to get more money)
Well, for starters, Acorns is doing a promotion to attract a younger crowd, which micro-managing is all about. They are offering free membership to college students for up to 4 years. This is great because college students already have enough on their plate, let alone having to pay monthly to Acorns. On top of that, Acorns has paired with some big name companies like Jet, Airbnb, and Hulu, to get you extra money. They call this "Found Money." If you use the same card you have connected to Acorns, on one of their partnered sites, you get %10 cash back. This cash back money automatically gets invested with the rest of your change. That means that you are playing with house money, and anything you make off of that is completely free money!
What Differs Acorns From Other Online Investing Sites?
Well, for starters, its one of the only sites I have seen that literally works on pocket change. Other sites usually ask for a couple of dollars to start a portfolio. At Acorn, you can enter the app with 5 cents, and they still will invest it. In addition to that, they are very educational. They know that many of their members are undereducated in terms of the economy and investing money. The website walks you through how your money will be invested. In addition to that, they have a very friendly and helpful support staff that can answer your question. I mean, they have over 100 employees for a online company, theres always someone there to answer a phone call.
I Want To Learn More About Investing Money.
Well, you can always go to your local library and check out a 500 page dusty book about econometrics and the stock market. Or... you can check out Grow, a acorns affiliate site. They run a online website, attached to their website, to educate their members. On this site they have interviews from people that have made money, as well as articles that teach investing to the younger generation.
Are There Any Downsides To Acorns?
There are a few downsides to the site. For one, this may sound like jargon to you, but their portfolios are small. For example, after you have joined the website, and acorns see how much money you have, how much you are spending each day, etc. etc, you will be directed into a portfolio. These portfolios range from conservative to aggressive, depending on your spending habits, and how much money you hope to make. Within each portfolio, your extra change is invested into 6 different kinds of stocks and bonds. The downside of this is that there are only 6 investment opportunities, which can cap your total earning potential.
Now, you weigh what you think of the website, their mission, their business plan, and your financial standing. This is no doubt a great site that can earn you money without you doing anything. In addition to that, you probably won't even realize that extra change is being pulled from your account, because you already are spending money. With very little risk, Acorns is proud of what they do, and think they do a damn good job. Sites and news outlets such as Forbes and ABC News all have backed Acorns, and voice their support and applause as a great money managing site for millennials to join.
While we are talking about making money while doing nothing, why not look for other ways to make simple money on the side. A great way to do this is sign up for a site such as ProOpinion. I've reviewed them here so you can see exactly what you are going into, and what to expect.
Listen, we all need more money. Unless you are retired with a padded 401K and great assets, a little extra money wouldn't hurt anyone. Because of this, sites like Acorns exists; to help people earn extra money. Feel free to give it a try and leave your comments below.
Extra Ways To Earn
Acorns is a very unique site. It is a great way to save get started in investing, and pad your wallet a couple of cents at a time. It's sites like these, interesting, and unique sites, that catch our attention. There are many great ways to make money online, that are less traditional than say a simple survey site like Swagbucks. Don't get me wrong, Swagbucks is a great way to earn extra money, and start to build a secondary/passive income. However, if you are looking for a few more ways to earn, our blog has the answers for you.
A few new ways to earn that we have looked at are: Mr. Rebates, Amazon Flex, and Product Testing USA. Mr. Rebates is a great site where you can shop online, and earn a percentage of your purchase back. Chances are you already shop at these stores, since Mr. Rebates has partnered with the more popular shopping sites. Secondly, there is Amazon Flex. Amazon Flex is a s site for someone that want to get out and be active, while earning money at the same time. What members do, is essentially join the fleet of Amazon delivery drivers. You set your hours, how far you want to drive, and wait for packages to pop up. Similar to Uber, you can use your own car. And finally, there is Product Testing USA. They are a company that gives products to their members to test out.
These, and many more, are all available on our blog. So check us out, and see what site is the best fit for you. Once you have found it, the possibilities ,and many times, earning potential is endless.