Saving Money Without the Jars
Saving money is hard. It is especially hard when you are living paycheck-to-paycheck. I have tried saving money for years, but I always have issues retaining the funds for long. I have jars full of loose change (jars of dirt, we call them) around the house. I have hidden cash between pages of books. I have a regular savings account through my bank. All these plans sounded good from the beginning, but there is problem.
I always end up using the money I saved, which means, constantly starting over again.
It is a new year and my main resolution is to minimize my debt and increase my savings. It was time to change my habits.
I recently signed up for Acorns. I saw it as an opportunity to have a savings account away from my regular bank accounts. I also like that I could invest as little or as much as I wanted with low fees. The account was easy to set up and I can manage my account on a computer or on my phone through their app.
This isn't a regular savings account that grows at a standard APR. They invest funds into the stock market. As the market fluctuates, so will my funds. Which means, there may be points in time where I lose money (but, it usually comes back and grows). I don't know anything about trading stocks, so I like that I don't have to be involved in the decisions.
To ensure I invest a little each month, I set up recurring monthly payments and turned on the round-ups. Round-ups are the same as keep-the-change programs, they round your transactions to the nearest dollar and invest the spare change.
As mentioned above, there are fees involved. $1 a month for accounts with less than $5000. After that .25% of your total. However, if you are a college student and sign up with your .edu email, you can get up to four years free of fees.
Food for thought on the fee: If you only invest $10 a month, the fee is 10% of your total investment, which is high. So as your account grows, the fee percentage will drop until you get to the .25% threshold.
I like how easy it is to invest and see the growth/loss changes. The potential growth graph is excellent. I like being able to see how much money I could have if I let my savings grow. Acorns is also in the works of creating a retirement savings (IRA) so something to look forward to with tax saving options.
So far, I am satisfied with this program. I just hope I stick with it and leave my money alone. Big changes take time to turn into habits, so I have a long way to go in becoming better with my personal finances. I'll try to keep you posted as my progress as time passes.
Feel free to share your money saving strategies in the comments below.
Get started with Acorns today and receive $5.00 (I will too!) by using my referral link below.
Note: This post contains referral links. I may get a commission from registrations made through links in this post. This is not a sponsored post. Opinions are truthful and my own.