I began my saving journey two years ago, which is late for my age, but it is never too late to start. And while checking YouTube and other online sources to get inspiration, I found Acorns.
Acorns rounds-up every purchase you do with your debit or credit card to the next whole dollar and invest that money for you in low-cost ETFs. So if you buy a coffee for 2.35$ it will round it up to 3.00$ and the 0.65$ will be automatically invested for you in ETFs. One problem though, Acorns is not available in Germany, where I currently reside.
Nov. 2019 finally a company a round-up app started in Germany, its called Peaks.
This app offers different saving strategies:
- Round-up saving
- Daily saving: 1, 2, 10 or whatever amount of Euros daily
- Monthly saving: a certain amount to be saved on the last working day of the month, and other services
Peaks will charge you 0.00€ for the first 3 months, and then it will charge you 1.00 € each month if your investment is below 2500.00€. it invests in sustainable and Socially responsible ETFs.
I’ve been using the service since Nov. 2019 and the question is now, is it worth it?
I’ve decided to invest in it as follow:
- Use the Round-up function with my card payments
- Save 1.00€/day
This investing strategy allows me to invest a total of ca. 50€ each month in the app. So far I’ve invested 450.00€ in it and I set my settings for the risky investment strategy. My portfolio consists of 90% stocks and 10% bonds. Which is a very good mix for the investment strategy I chose and my savings goals.
I love the service and it helps me save extra money on the side. I’ll never use a round-up app as my main savings account nor would I recommend it. It is, however, very helpful to save without paying any attention for Christmas presents, airplane tickets, video games, etc.
I haven’t withdrawn any money from my account yet, but I imagine I’ll use the money in it, which is saved easily and slowly over the year, to pay for the Christmas gifts this season, without them breaking my budget in Nov./Dec.
Using the round-up service will not make you rich and it will not contribute to your financial freedom. However, seeing the amount of money in the app is very similar to the feeling one has, when you pick a jeans from the closet and you find a random 5$ bill in its pockets.