LiifeHabit: Automate “Round-Up” Investments
Benefits: Round-up investing helps you control your money by saving small amounts without much effort. For example, every time you buy something, the app or bank rounds up the purchase to the nearest dollar and saves the difference.
With this method, your savings will add up and grow over time without you even noticing. Some services claim you can save around $36 a month, which could add up to thousands over the years, building a safety net for the future.
Overview: Round-up investing is when small amounts of money are saved or invested automatically every time you buy something. When you make a purchase, the total is rounded up to the nearest dollar, and the leftover change gets invested. For example, if you spend $4.75, the app rounds it up to $5.00 and invests the extra $0.25. Over time, these small amounts can add up and grow, helping you save money without even thinking about it. It’s a simple way to start building wealth with little effort.
LiifeHabit Guide
Automate “Round-Up” Investments
- Step #1 – Choose the Right App or Bank: Look for financial apps or banks that offer round-up investing. Some good options are Acorns, Qapital, Monzo, Bank of America Advantage Savings, and Ally Savings. Pick one that works for you. Some focus mainly on investing, while others offer both saving and investing options.
- Step #2 – Link Your Accounts: After you download the app or set up an account, connect your spending account, such as your debit or credit card. This will allow the app to track your purchases automatically, and it will transfer the rounded-up money for you.
- Step #3 – Turn On the Round-Up Feature: Activate the round-up option so that the app or bank can round up your purchases to the nearest dollar. Some apps even let you multiply your round-ups to save money faster.
- Step #4 – Customize Your Savings: Decide how much you want to save. Some apps allow you to round up your purchases by 2x or 3x, which helps you save money more quickly.
- Step #5 – Check Your Investments: Every once in a while, check your app or bank account to see how your small round-ups are adding up over time. Some apps or banks can also provide tips on your investments to help you understand how you’re doing financially.
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