If you’re looking to start saving and investing, you’re not alone. About 1 in 5 Americans say investing is their most important financial goal. Meanwhile, more than half of American workers said they felt behind on their Pension savingwhich means catching up is probably a top priority.
There’s a reason many Americans want to invest – $5 invested a day can grow to $150,000 by 2052 with an annual return of 6%.*
Whether you’re looking to boost your 401(k) or venture into the stock Exchange, investing as early as possible is crucial to making your money grow. However, growing bills and rising prices can mean that the money available to spend on investments is out of reach.
The good news is that you don’t need a lot of money to start investing. With the strategies and resources offered by investment services like Acorns, you can use your bills as a springboard to launch your investment portfolio.
*Based on $155 invested monthly. This is a hypothetical investment calculation based on current market rates and historical trends; results may vary depending on contribution amount, rate of return and time period.
1. Use coupons and discounts to cash in on groceries
Food prices, in particular, have been hit hard by inflation, eroding consumer incomes and excess liquidity. The coupon cut can put some of that money back in your pocket and free up those funds to invest in your wallet.
While you don’t need to devote hours of your life to bargain hunting, there are a few couponing strategies to maximize your savings.
First, look for manufacturer coupons that you can combine with in-store coupons, which means double the discounts. Second, look for competitor or online pricing policies that allow you to price match when shopping. Finally, take advantage of in-store rain check dates. Rain checks allow you to stock up on discounted items in the future, which is especially useful if prices rise again.
Discounts are another way to earn money on your purchases. Depending on the type of discount, the more you spend at a store, the more potential money you can get back. This gives you a small windfall at a later date that you can use to invest.
You also don’t have to limit yourself to shopping at just one store. Some brands offer discounts through partners such as acorns winwhich can be another way to find deals.
2. Round up your purchases
Another easy way to start investing is to round up your purchases and use loose change to invest. For example, if you buy a coffee for $4.77, you can round up the purchase to $5 and use the $0.23 to contribute to your wallet.
While it’s possible to do this manually by tracking your transactions, rounding them up, and investing the money afterwards, Acorns can automatically round up and invest for any purchases you make on your selected payment account. This allows you to start building your portfolio in the background.
3. Fix money leaks and invest your savings
Your wallet is leaking? Unaccounted charges, fees and bills that creep up may not be noticeable at first glance, but they can slowly add up. Think about daily expenses that cause you to spend more money than you need.
Discuss your monthly expenses and see where you can reduce your expenses. If your utility bills have increased, you may want to find ways to reduce heating, electricity and air conditioning costs – or check to see if there is an insulation problem in your home. Also, make sure your car is in good working order for maximum fuel efficiency.
Reducing ancillary costs can also be a way to start investing, especially if it’s part of your routine. Investing apps like Acorns can let you invest with the click of a button, meaning you can instantly reward yourself for skipping your daily coffee.
Plus, you can transfer a fixed amount each month from your direct deposits to your investment or savings accounts using features like Smart Acorn Deposit.
4. Use card rewards for extra cash
Cash back on your credit card means that for every dollar you spend, you get some back. A card with 5% cash back can earn you $50 for every $1,000 charged, which is extra money you can divert to investment.
When it comes to looking for a cashback card, look for one that matches your spending habits. See if you can find a card with a welcome bonus, which can give you cash to work with immediately.
Some cards offer a package 1% with higher returns on certain shopping categories, such as groceries or Amazon orders. Keep an eye on the categories your card specializes in. The more you run with your card, the more money you’ll get, so aim for the categories where you spend the most.
5. Turn an expense into passive income
With a little effort, wasting money, such as your car, gym memberships, or buying supplies to fund your hobby, can actually be profitable. Monetizing a hobby can be a great way to recoup expenses and bring in passive income flows to build your portfolio.
You can also monetize your secondary hobbies. If you like crafts or carpentry, sell your creations on Etsy can be an easy way to earn some extra money to invest. You can also start a tutoring service or coach an amateur sports team.
6. Look for tax deductions and credits you might be missing
To finish, Tax deductions can be an easy way to maximize your tax return. Although you may not be able to access this form of money immediately, deductions can give you a good amount of money to work with once they are processed and you receive your return.
Charitable donations are deductible in many cases. This may include monetary contributions, donated clothing, or unreimbursed mileage to drive you to volunteer activities. If you run a small business, you can usually deduct expenses such as insurance, inventory and equipment rental.
Start your investing journey with Acorns
Saving on costs can help free up your cash, and that extra money can be used for investments. If you are a beginner investment, venturing into the world of exchange-traded funds, portfolios and dividends can seem daunting. However, Acorns can provide you with both the means and the resources to start your investing journey on the right foot and grow your knowledge and portfolio with confidence.
tassels allows you to invest your spare change. Every purchase on your linked account will be rounded up to the nearest dollar, allowing you to add to your investment funds with every bill you pay. Creating an account only takes five minutes.
The investment should not stop there. As you build your portfolio, you can learn more about investing using Acorns’ investing resources, which include expert articles, reviews, tips and news to keep you up to date. aware of the latest market trends.
Plus, with the money you save on day-to-day expenses by using the tips above, you can set up accounts with Acorns for retirement, your family and more. This allows you to save and invest for the future while benefiting from potential tax advantages.
The bottom line
It’s best to start investing as early as possible if you want to build a nest egg. Fortunately, one of the best ways to start investing doesn’t require a windfall – investing with a little cash is more possible than ever. By analyzing your expenses, finding ways to save, and getting creative, you can use your daily expenses to start small and build your wallet.
Acorns can help kick-start your investing journey. The easy-to-use app invests in your everyday purchases, while providing educational resources to help you expand your knowledge. With a flexible system, it’s easier than ever to take the first step into the world of investing. See if Acorns is right for you.