At the end of the month, they will charge you $1.00, lowering your amount to $14.00. After 30 days, you would have deposited $15.00 into your account. Let’s also be generous and assume that on average, your purchase results in $0.50 being deposited into your Acorns or Stash App. But for argument sake, let’s say that you make a purchase every single day. If you are smart and intentional with your money, you shouldn’t be buying something with plastic each and every day. How many times do you swipe your card each month? Hopefully, you have cut back since reading my blog. Let’s look at how these businesses operate. What’s The Difference Between A Roth IRA And A 401(k)/457? Can Acorns And Stash Make You Money? Wasting your time with change is just that – wasting your time. You should be investing intentionally whether it be in an employer-sponsored retirement plan or a Roth IRA where you make regular deposits. If you have paid off your debt, why would you waste your time investing such a small amount of money? That change should be going towards your debt. Are you still in debt? If so, you should be putting all of your extra money towards debt, not investing your change. It also depends on where you currently are in The Debt Payoff Playbook. With these apps, you are only saving a small amount of money at a time and therefore compound interest is not working in your favor. So here at Arrest Your Debt, I firmly believe in being intentional when you save, spend, pay down debt, and invest. Investment Principles For Financial Success The FeesĪcorns and Stash each charge a monthly fee to your account when you use their program. That’s it – just watch your money grow right? Wrong. So if you make a purchase for $1.75, your total price will be $2.00 and the app will invest $0.25 in the investment you have chosen. They link to your bank accounts and every time you make a purchase, they round up to the nearest dollar and invest the change. What are these apps? Acorns and Stash run on the same principle. These apps are not made to make you successful, they are designed to make the company money – not you. Sorry for being so blunt, but I really don’t like people or companies who take advantage of others.
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