Squirrel Away Your Change With Acorns App – MPSOS161

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What if you could invest your loose change at the end of the day? Now you can with Acorns.

Acorns is an app taking advantage of new technologies and less expensive investment fees to allow anyone to start investing without a minimum balance or complicated application process.

Interview with Acorns founders

The Acorns AppWalter and Jeffrey Cruttenden share the incredible technology and process behind Acorns. It was developed on the idea that everyone will be mobile, so the focus was on developing an app to act as a portal to connecting funding accounts with the investments – and track every penny along the way.

In the interview we discuss:

  • Fees: $1.00 a month and .5% annual fee (.25% after reaching $5,000)
  • Investment funds: ETFs from Blackrock, Vanguard and PIMCO
  • How much control a customer has over the portfolio mix
  • Can you deposit other monies into the account at any time? Yes
  • Is there a ROTH or IRA option? Not at this time
  • Acorns Beta users paid more attention to their spending and identified problems/opportunities

Walter and Jeffrey believe this is an excellent way to get millennials to begin investing. It's hard to convince someone to save $1,000 in chunks but easy to squirrel away a couple bucks a day using the Acorns App process.

How Acorns works:

1) Download the Acorns app

Download Acorns App for iPhone IOS

2) Sign up for a free account

3) Tie your debit card (and credit card if you still use one) to Acorns

4) Choose your level of risk

That's just about it. Acorns will “round up” your purchase to the next dollar amount.

Once the rounded amounts accumulate $5.00 or more, Acorns will deposit that amount from your funding account (which is likely to be your checking account) into an investment account (the diversified portfolio of ETFs).

What I learned from the Acorns interview

It's not as scary as it sounds. Tying your charge card to Acorns is similar to tying it to dining programs such as American's AAdvantage program or United MileagePlus Dining.

Acorns never touches your original transaction: They monitor your activity and record the round-up amount.

Even if someone messes with your Acorns App, the money taken out of one account will end up in your investment account.

Once you set it up there is very little maintenance. Everything works automagically.

I find this fascinating. The technology and lower fees makes Acorns a viable service. I can't wait to see what's next!

 

UPDATE: Acorns announces “Students invest for free

 


 

YNAB UPDATES THE iPAD APP

YNAB UPDATES iPAD APP! The app is free and the new update lets you change the budget on your iPad!

Read about the upgrade – with screenshots galore – here:

http://www.youneedabudget.com/blog/2014/ynab-for-ipad-is-here/

YNAB is cross platform and syncs to all your devises. Get 10% off YNAB today by clicking on graphic below:

Click here to receive 10 percent off YNAB

 

 


 

 

The September 100 Challenge

No, this has nothing to do with ice buckets.

The #100challenge is for people like myself who want to stretch their financial muscles for 30 days:

Squeeze every dollar you can until you reach $100:

  • Sell stuff at a garage sale or Craig’s list
  • Work extra
  • Do something unusual for money (walk dogs, RUN dogs, take care of someone’s house while they are away, fix a fence, mow lawns, paint, etc)
  • Or simply cut back on some things for 30 days
  • Play guitar on a street corner for tips

Put a post-it note on your mirror or daily reminder on your phone. 

Once you reach $100 – apply it to your next goal: Emergency savings, Christmas, car replacement fund, vacation, kid’s college, paying off the house, etc.

After you reach $100 keep working and/or saving more $$$ to do something special for yourself – just for September 2014!

Click the owl to Tweet or share your success with the hashtag #100challenge

100 dollar challenge in September

 

Click to print this picture

What are some of the ideas you have that can bring home more money or spend less in September #100challenge?

 

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4 Comments

  • Janet Davis

    Reply Reply September 6, 2014

    Hey Steve, I met you at PM14 standing in line Friday night to check in. I love your podcast!!! I’m a big Dave Ramsey fan and your podcast gives action steps for the things he talks about. This is the first episode, of yours, thatI have listened to and it’s great. I have a 19 y/o son and I have been wanting him to start investing, like Dave says, but since I don’t know how, I didn’t know how to advise him. The Acorns app looks like a great way to start off easy. Going to try it. Thanks for talking with me in line 🙂 and thanks for introducing us to this app.

    Janet

    • Steve Stewart

      Reply Reply September 7, 2014

      Cool Janet! It was great talking to you too!

      Your son might be the ideal user of Acorns. It’ll get him started and, as long as he is paying attention, he could start putting away $20, $30, even $50 a month without batting an eye.

      I’d love to hear about his experience using the Acorns app. Keep me updated, OK?

  • William Fernando

    Reply Reply October 10, 2014

    Hey Steve, Congratulations for all your success, you know a big fan and very grateful follower of yours

    to the point. I was very thrilled when you invited the guys of acorns, I think is a fantastic idea, I gave it some time, then I listened in Stacking Benjamins once again about acorns. I am ready to go, I just want to ask you. Do you personally use Acorns? if so how do you navigate your records with YNAB, which i use and it’s been really really useful for me. Let me hear your comments and suggestions on how to integrate Acorns and YNAB

    • Steve Stewart

      Reply Reply October 12, 2014

      Hi William, thanks!

      Although I love the idea, I decided not to use Acorns. We already have a savings routine set up and are working with our Financial Planner – adding Acorns to the mix would complicate things more than they need to be.

      I think it’s a great idea for someone just getting started. If you can start using Acorns and send them more than just your loose change then this is a viable option.

      How to incorporate with YNAB? I imagine it would be easy (gathering what I learned from the interview). They don’t touch your original transaction – they simply withdraw from your account once the accumulated “round-up” change reaches $5. So all you need to do is make a YNAB entry showing a $5 outflow to your Acorns savings each time they do this.

      Let me know how it works for you!

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