Time for another look at how Acorns is doing.
The Acorns Experiment
I am running a 12 month experiment with Acorns where I will be investing $100 a month as a regular investment and also allowing it to do ’round-ups’ to invest the spare change from my spendings. Acorns has a standard monthly fee of $1.25 for account values under $5000 and my personal view is that it is an exorbitant fee that makes any investments under that threshold be better off done in a high-interest bank account.
However, instead of just pulling numbers out of thin air, let’s actually play with a live stock market and real cash.
July was the month where I received the first ever dividends of my life that wasn’t $0.01 (outside of super). Hooray! There were quite a few different shares that paid dividends over the end of June and start of July which amounted to $1.88 being reinvested into the account.
Compared to last month, you can also see that the market was starting to climb back up and we weren’t in the red quite so much anymore. At the time of writing, I’m even in the green by quite a few dollars.
All around, I’ve picked up more of all the ETFs that I already had a hold in over the month. I assumed that’s pretty much how it will be from now on, same funds, just more shares of said funds as I put more money into the account.
What I actually found interesting is the fact that over the month of July, a total of $34.09 was invested through round ups. This made me ponder about the fact that that is a good amount of transactions (esp when you consider the fact that often, the round ups are a few cents). I’ve only allowed for round ups to be made from 2 of my accounts, a saving transaction account and a credit card account. Lots of transaction may mean lots of money flowing out of my account. Hmm!! Time to see where else I can cut!
We are 3 months into this experiment. So far I’m still questioning the fee, but there will always be a fee for anything. As my balance goes up I feel it does become less of a concern. ($1.25 of $100 is very different to $1.25 of $5000, for instance). The fee aside, I actually really like how the siphoning off and roundup works. I still have my misgivings such as allowing a 3rd party app have access to my bank account and most likely will stop allowing that to happen once the 12 months experiment is up. But meanwhile, it gives a very interesting snapshot of my spending habits.
Onward to next month!