Acorns: A Simple Way for Beginners to Invest (And You Should!)

Lately, I’m concerned with helping my 24-year-old brother develop healthy financial habits. I didn’t take control of my financial life until I was nearly 30. And god I wish I could get back those early years. Why?

Compound interest is the most powerful force in the universe.

The earlier you start, the longer your money grows. It’s a simple concept. But so many peeps put off investing.

It’s perceived as complicated, overwhelming, and something to fear. The financial industry made sure you feel that way so you’ll overpay some bozo to manage your finances. Don’t get tricked. Get smart – and fast. Your financial future is an out-of-control emergency you can’t afford to sleep on.

It doesn’t matter where you start. Just as long as you do start.

Am I crazy about Acorns? No. But it’s a great place to begin

Acorns is a micro-investing app that will fit the bill nicely. Here’s my review.

Why Acorns?

Link: Sign-up for Acorns

To start investing with Acorns, you need at least $5 in your account. And when you sign-up with my link, you’ll get $5 to start investing!

After you sign-up, you’ll get a recommendation based on your goals. These are directly tied to your risk tolerance – and you can change them any time.

In general, your risk tolerance should be higher the longer you plan to invest. So if your timeline is 10+ years – which it is you’re young and saving for retirement – you should go for the “Aggressive” option.

Acorns is pretty good at suggesting a portfolio

This mix is your portfolio. For example, the Aggressive mix (for the most growth) has:

Vanguard REIT ETF (VNQ)
Vanguard FTSE Emerging Markets (VWO)
Vanguard S&P 500 ETF (VOO)
Vanguard Small-Cap ETF (VB)
 Vanguard VEA ETF (VEA)

Vanguard index funds are widely regarded to be the best in the industry (though I prefer Fidelity). But that’s for another time. For now, you’re beginning. That’s the most important thing.

And that’s also the answer to “Why Acorns?”.

REALLY cool extras

As I dug deeper, I found a lot that made me really like Acorns. For one, they have a fantastic app. It looks great, it works, and it’s easy to use.

I love this

You can set one-time or recurring investments. I think most peeps can handle $5 a week. And I love the “Round-Ups” feature.

That means when you link a card and a bank account, Acorns will round up every transaction to the next whole dollar – and transfer the difference into your investments.

So if your coffee is $2.15, Acorns will put $0.85 into your investment account. That doesn’t sound like much, but that’s the point. It all adds up, it’s easy, and you’re adding small amounts over time instead of huge lump sums. This is a lot more approachable and less daunting.

Invest while you shop

They also have what they call “Found Money.” It’s basically a shopping portal – but the cash back you earned is invested for you.

Now, I recommend checking Cashback Monitor to make sure you’re getting the best deal. But it’s hard to argue with the fact that you’ll earn compound interest for years on the money you earn. So I do like this option. In many cases, the payouts are quite good. But still, check other portals to be sure you’re getting a great deal, OK?