Micro saving for micro-investing

What’s this- a second blog on Acorns? You betcha. And no, I’m not working with them- I’m just a little obsessed.

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I didn’t meant to write any more on the matter, but after my last post I was marveling at just how much money has accrued in my account through tiny top-ups. And then I got to thinking about how many equally tiny payments I make on a regular basis. You know the ones I mean- they’re the charges we tend to write off as the cost of convenience – $2 or $2.50 to the bank to draw money from an ATM is just a little sting when I get the money out, but that can easily add up to $200 across the course of the year. The same could be said for any time that I just grab a ‘quick bite’ because I wasn’t organised enough to bring something from home, or when I forget to pay a bill early and lose that discount.

While this could descend into another discussion on the Latte Factor, what it really reminded me of was this fantastic app that surfaced just before I left NZ (skip to about 50sec in for the real details).

 

The concept is beautiful to a compulsive saver. One big red button and the money you were going to spend on that avoidable little convenience vanishes from your account and pads out your savings instead. Isn’t that magical?

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It occurred to me that Acorns can serve the same voodoo hoodoo function. After all, most of these tiny expenses are ones that you’re already absorbing into your weekly budget, so if you’re not struggling financially you probably won’t even notice they’re missing (you do have a budget, don’t you?)

Decided to skip your afternoon coffee? Drop that $3.50 into your app instead. Walked the extra block to get to an ATM that doesn’t charge you withdraw fees? Squirrel that $2.50 away, baby.

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Now Acorns is my app of choice here (because as far as I’m aware, in Australia it’s the only choice) but the Red Button saving technique that I’ve definitely just invented can transfer to any of your savings efforts.

Operating in cash? Physically take that money out of your wallet and tuck it somewhere else. Make sure to keep it separate from your daily spending money, and transfer it out of your bag as soon as you can- As they say, out of sight, out of mind, and on your way to a million buckaroos!

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…I may have made up that last bit.

 


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Micro saving for micro-investing

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