So you have a lot of money in your acorns account and not sure what to do with the money? or you don’t have a lot of money inside your acorns account and you want to take that out but not should on what to do? Lets talk about acorns. Acorns is a investing app where you can buy fractional shares businesses, well you don’t buy them the acorns app does that for you. You can put in your own money to be invested or use the round up feature on this platform. I will give a real quick breakdown of the round feature and then talk about should I withdraw money from acorns.
Round ups:
You must first link you debit card or your credit card to acorns in order for the feature to work. Once you have done that, turn on the round up option inside the app under setting. Once that is done, that’s it. When you buy anything using those linked cards, for example you buy gas and let’s say you spend $20.75 cents. acorns will round up your gas to $21.00 and take that .25 cents and place that insdie acorns. Once you reach $5 bucks, the app will invest in the stock market for you. That is the jest of it, there more but I want to answer the question about should you take money out. By the way, if you want to join acorns here my link to get started: Click here
Should you take your money out of Acorns?
Yes you should and let me tell you why. It is nice to have your spare money going into the stock market for you without you having to think about it but the money you build up over time, you can’t use. Yes you will get some dividends but the app will auto invest that for you. So you have all this money sitting there and you can’t use the money. You can’t just keep the money in there forever? You will need to use the money at some point in time.
Right now I buy stocks that pay a dividends, I use those dividends to buy more stocks and that dividends. My goal is to build another income stream that pays per month to pays bills. I use robinhood to buy my stocks. it;s hard to have a goal with using acorns, what is your goal? I look at acorns as a high yield saving account. You can’t build another income stream using acorns. You can’t pick what stocks you want to buy.
The money just sits there in your acorns account which it will build up over time but what is your plan with the money you have? yes I do believe in have some funds saved when you get older but keep in mind that if you didn’t learn anything from Kobe Bryant death is that tomorrow is never promised to anyone.
Unless you have a goal for the money or there is something that you want to buy with the money than saving it is not the way to go. Want I like to do is build up my acorns account for the full year, then the next year withdraw that money. My wife and I are trying to pay off our home and we are making additional payments to pay it off. Our goal is to rent out our home and income and start investing into real start. So with the money from acorns, half of that money will go to paying off the house and some into dividend paying stocks. Once the house is paid off, we will be in a way better place with money.
You can do the something you can do as well, we all should have a 5 year plan where you want to be in a better place with your life and not just working making someone else rich all the time. Acorns is a app to get your feet wet with the stock market, once you have used it for a while, then you should be looking up different stocks and build up your stocks.
The rounds up makes it very easy to save money without doing anything and I love that fact as well but I rather I a full share of a stock rather than a fractional share but there is nothing wrong in having fractional shares.
