Over the years I have heard a common piece of advice from financial planners: if you don’t have enough or don’t feel you have enough money to actively invest, only pay with dollars and keep your spare change in a jar. At the end of each week, take the jar to the bank and put the money in it in a savings account, or other low-cost account where your money can grow.

Acorns does just this, but in an elegant manner. It monitors whichever bank or credit cards you like, and when it finds a new transaction it rounds the amount up to the nearest dollar and stores the differential. When the total differential amount reaches $5 it automatically invests $5 in a broad range of assets, chosen according to your profile and your risk tolerance.

Acorns invests in low-cost ETF assets to spread risk and maximize returns.
Acorns invests in low-cost ETF assets to spread risk and maximize returns.

I particularly like Acorns because it trades on the old addages “out of sight out of mind” and “a penny saved is a penny earned.”  Transferring $100 out of my spendable account hurts, but if it’s taken out small amounts at a time, I hardly notice.  Once the money is in my Acorns account, I don’t miss it, and I don’t touch it.  I just let it grow.

It is definitely a long-term solution to wealth procurement.  I don’t expect to be made a millionaire overnight.  In fact, I expect between 5% and 10% annual growth over the entirety of my life so I expect to earn in the tens of thousands of dollars from Acorns.

If you like, you can make Acorns your primary investment vehicle by depositing directly into your account and also setting up a recurring monthly payment to your account in order to increase returns.

Acorns also automatically reinvests any dividend payments you receive for even more returns.

Click here to check out Acorns yourself!