This Alternative Income Idea is an Easy Way to Start Building Wealth

With younger generations facing more money pressures than ever before, it is important to consider investing and saving sooner, rather than later.

Acorns is one of the increasingly popular ways that millennials are saving their money – like a virtual piggy bank, it allows you to round up the amount of purchases you made to the nearest dollar then invest that difference into a portfolio.

With Acorns, users are able to just make purchases and forget they’re even saving!

Founded in 2012, Acorns has been around 6 years –Acorns has raised over 102 million in venture capital so far, with a base of 2.9 million users.

Whether you’re looking for a way to save up for a comfortable emergency fund or save for retirement, Acorns enables you to have a quick and easy way to do just that. The Acorns app makes saving and investing effortless – in fact, with a $5 investment every couple of days, you’d have about $1,000 by year end.

What do I need to know?

  • College students pay ZERO fees for four years as long as you provide a valid .edu email address
  • Acorn Fees: $1/month or 0/25% per year for accounts greater than $5,000
  • User data is protected with 256-bit encryption and never stored on your phone, tablet, or commuter. Acorns Securities, LLC is a member of the Securities Investor Protection Corporation (SIPC) which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).
  • Account investment portfolios are composed of six Exchange Traded Funds (ETFs). Those funds are invested in the asset classes of Large Cap stocks, Small Cap stocks, Real Estate, Bonds, and Government Bonds. The mix of those assets is dependent on your risk tolerance.
  • You can access Acorns on any device: desktop computer, laptop, tablets and smart phones

How does it work?

Admittedly, finance isn’t for everyone and to some – it’s not that easy to get into: finding a financial adviser, taking time to meet with your financial adviser, paying for fees and making a substantial investment – these are just some of the reasons why people don’t even bother. With Acorns, investing is simple and easy, and for as little as $1/month you get to invest however way you want. Check out below on how it works:

  1. Connect Your Card: First, connect the accounts and cards you use to make everyday purchases
  2. Make a Purchase: Next, spend like normal, Acorns will round up your purchases to the nearest dollar
  3. Invest Your Change: Then, watch your wealth grow as Acorns automatically invest your spare change

I want to invest more. Can I do that?

YES. You can invest more on Acorns if you want to.

Recurring One-Time Found Money Referrals
Set up a recurring daily, weekly, or monthly investment on Acorns Boost your account anytime with $5 or $50,000 Acorns works with big brands to find you more money. Read more about it here. Grow your Acorns account when you invite friends to start investing

Acorns, acting as your new virtual piggy bank, is a useful tool to help with forced savings and investment. For college students and employees that do not have access to a 401k plan to build up a savings account, Acorns is a great way to invest as the investments will just grow as if the funds are placed in an individual mutual fund with an investment bank.

Over time, you can access a screen that shows how your account in performing for various time periods – from one day to six months or since the beginning – allowing you to see the total account value as well as percentage gain or loss for that specific time period.

If you’re someone who wants to dip your toes into investing, Acorns is definitely a great way to start your wealth building as it integrates regular investing activities into daily spending.

What are you waiting for? Download the app now and try it out yourself.

— Chie Yu

Where to Invest $99 [sponsor]
Motley Fool Stock Advisor's average stock pick is up over 350%*, beating the market by an incredible 4-1 margin. Here’s what you get if you join up with us today: Two new stock recommendations each month. A short list of Best Buys Now. Stocks we feel present the most timely buying opportunity, so you know what to focus on today. There's so much more, including a membership-fee-back guarantee. New members can join today for only $99/year.