GROW YOUR SPARE CHANGE


 

You know that at SWIISH we are all about living a luxe for less lifestyle. We want to look good, we want to feel good and we want to do it at an affordable price. We're all about bang for buck, and sharing savvy tips across every part of the lifestyle spectrum from fashion to beauty to food to homewares and beyond. This has basically been the way I have lived my entire life, even as far back as when I got my first casual job at 16. I loved fashion and I wanted to buy everything but I always kept an eye out for the sales, I bought booklets that contained discount vouchers for restaurants and movies and I even got a little wallet in which to put them (hey, you should always do things in style, right?!). I would throw all my spare change in a bowl and wait for it to fill up. I would count it all out and use that money to go and buy more clothes. This process taught me that even the smallest things can make a huge difference.  At the end of the day, it all adds up! 

This idea of saving your coins in a piggy bank or a spare change bowl is the same idea behind our favourite new finance app – ‘Acorns’.  If you haven’t heard of it yet, it's because it only just launched in Australia recently.  But we've got no doubt that this is one of those apps that everyone will be talking about. We're calling it the 'Uber' of finance - that's how clever it is. The idea behind it is so good that we only wish it was created sooner. Because get this…not only can this app save you money, it can actually make you money as well.  Nope, we’re not kidding!  

OK, here's how it works. Instead of leaving your spare dollars sitting in that bowl, Acorns lets you invest them instead.  The way it does this is by rounding up purchases made on your credit or debit card to the nearest dollar. So let me explain this to you in real terms. You go to buy a coffee and it's $3.50. You tap and go with your debit card. Your purchase gets rounded up to $4.00. Of that, $3.50 goes to the coffee vendor, and 50 cents into your Acorns account. Another example - you do the grocery shopping and it comes to $49. The app will round up your purchase to $50, and that $1 difference will go towards your portfolio. So what happens to the money you're saving? Well, it goes into an investment portfolio. I'll bet you're thinking 'Oh, I'll need thousands of dollars in order to kick this off'. Nope - all you need is $5. That's it.

Next, let’s look at an example of a whole days worth of purchases:

Coffee No#1                                                          

$3.50

Sandwich

$8.80

Coffee No#2

$3.50

Groceries

$80.70

Petrol

$54.55

Bottle of water

$2.60

Parking metre

$2.50

Acorns will round all those little purchases up so that you end up investing $2.75 for the day.  Times that by 365 days and you’re saving almost $1000 a year.  Now imagine if that number increased to $5 a day… you’re saving almost $2000 a year, without even thinking about it! 

The best part is, that’s just the money you save before interest.  Let’s say you’ve chosen a moderate portfolio to invest your spare change in and are earning an annual return of approximately 7%.  If you’re investing $5 a day ($1 825/ year), at the end of five years you’ll earn about $1 370 just in interest!  And that’s on top of the $9 125 you made in deposits.  How amazing is that?  With Acorns you can literally earn thousands without even noticing it.

Now whether you’re financially savvy or not, you’ll know that the general aim of investing is to increase the value of your money.  Of course, there are some risks involved but with such small amouts being invested, there isn't a lot to lose! 

Plus, one of the great things about Acorns is that users can decide whether they want to invest more conservatively or aggressively.  In fact, there are a total of 5 different investment portfolios that people can choose from, depending on how much risk they are willing to take. 

The best thing about this app is that it’s just so easy.  Investing can be confusing, time consuming and hard.  With Acorns, making your first investments is as easy as heading to Westfield and buying a new bag ha! The rest is up to the app!

We absolutely suggest that you try Acorns out for yourself.  You can head to the Acorns Australia website to find out more info or go to your app store to download it today.

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