4 Awesome Investment Apps to Make Passive Income
You work for your money, so why shouldn’t your money work for you?
If you keep your money in a piggy bank or under your mattress, it’s stagnant. The value of your money is likely to decrease as inflation continues. If you keep your money in a high-yield savings account, you might be able to get around 2% interest. In contrast, Nerd Wallet reports that the average annual stock market return is 10%.
While the stock market may be one of the best ways to grow your money, it can also be super intimidating. Luckily, there are apps that can help anyone dabble their feet in the stock market without pricey brokerage fees or hours of research.
It’s important to note that there is some inherent risk when investing in stocks. To play it safe, you may want to avoid investing more than you can afford to lose. When in doubt, you may prefer to interact with a financial advisor rather than going it alone.
However, if you want to give investing a try, these four apps are a great way to test the waters!
If you don’t have any money set aside, that doesn’t mean you can’t start investing ASAP. Link debit or credit cards to your Acorns account, and Acorns will round up your purchases, investing those extra pennies for you. Because of this, Acorns might be a good choice for people who prefer spending to saving. Since each purchase with a linked account rounds up, you’ll automatically invest a few cents when you shop. While the amount may seem insignificant, it can really add up over time.
Acorns does charge a monthly fee, which ranges between $1 and $3 depending on which subscription plan you select.
Even if you’ve tried investing in stocks before, you may have been turned off by costly commission fees. Unless you’re investing thousands of dollars, those fees can seem like a real deal-breaker. Robinhood offers commission-free trades for self-directed accounts when the trades are made via mobile device or online, so you can buy and sell as you see fit without the fees piling up. While fees apply for some services, many beginning investors may be able to avoid the vast majority of fees.
Do you want to invest in the stock market but have no idea where to start? Stash has educational resources to help you get your footing. Plus, you don’t have to save up to buy complete stock shares. Instead, you can start by purchasing fractional shares. Starting with just $5, you can invest in fractional shares of well-known companies, like Amazon, Apple, BP, and dozens of others.
Three monthly plans are available, ranging in price from $1 to $9.
Betterment allows you to buy and sell securities without incurring transaction fees. What’s a security, you ask? Well, stocks are one type of security that you may already be familiar with. With Betterment, you can diversify your portfolio based on your risk tolerance and goals, giving you more flexibility to select what works for you.
Betterment has a .25% or .4% annual fee depending on which plan you select.
When using these apps, make sure to read the fine print for a clearer idea of what you’re getting into. Investing money can be a terrific experience if you know what you’re doing, but it’s best to learn as much as you can ahead of time to understand your investments better. We here at Couponing101 aren’t investment experts, so you might also consider visiting a financial advisor for expert advice specific to your situation and goals.
Have you tried investing in the stock market? If so, how did it go? Let us know in the comments section below!