Have you ever thought of saving your spare change? Probably not much, as we all think that such a small amount cannot be able to fulfill our dreams and make a more significant impact on our investments or savings. However, in reality, every penny could go toward a brighter financial future. With micro-investing, everyone can use their spare change to build something bigger, even if you don't think you have the resources or discipline to save.
If you’ve been looking for unique and easy ways to pile up your savings, we’re excited to introduce you to an investment strategy that doesn’t affect your lifestyle. Here’s everything you need to know about micro-investing.
What is Micro-Investing?
Micro-investing is an investment strategy that allows individuals to invest small amounts of money into various financial assets, such as stocks, exchange-traded funds (ETFs), and other securities. This approach democratizes investing, making it accessible to a broader audience who may not have large sums of money to invest upfront.
How micro-investing works?
Micro-investing allows you to start investing even with minimal savings. By skipping habitual small purchases or rounding up to the nearest dollar when spending, you can begin building your investment portfolio. Personal finance apps like Acorns and Stash offer debit cards that automatically round up your purchases and invest the extra money in ETFs or fractional shares of stock.
Stocks of well-known companies like Amazon and Google parent company Alphabet have traded for over $2,000 per share in recent years, making them expensive for individual investors. While some companies split their stocks to make them more affordable, fractional shares enable you to invest regardless of a single share's price.
Consistently investing small amounts into the stock market over time can be profitable in the long term. This strategy, known as dollar-cost averaging, involves investing a fixed amount regularly, such as weekly or monthly. Dollar-cost averaging eliminates the need to time the market, as you'll buy more shares when prices are low and fewer shares when prices are high, ultimately averaging your purchase prices over time.
Benefits of Micro-Investing
Why you should start micro-investing? There are several benefits that you should know before you decide whether it's the right decision for you or not.
Low Minimum Investments:
Micro-investing enables you to start investing even with a small amount of money. With just a few dollars, you can invest in ETFs and fractional shares of stock. This is in contrast to traditional investments like mutual funds, which usually require a minimum investment of a few thousand dollars.
Accessibility
Many of the best investments available are open to only the ultra-wealthy and accredited investors, meaning you have to be making a certain level of income or have a certain net worth to get started or commit several thousands of dollars upfront. Micro-investing, on the other hand, was made to help the average person. Anyone can access a micro-investing platform that transforms small amounts of money into something far more significant. You’re worthy of investing – never feel that it’s out of reach for you again!
Consistency
Micro Investing helps and reminds people to be consistent while investing for their goals or saving for their future, thus building a great habit for investors.
No Lifestyle Changes
Savings plays an important role in your future, but it’s painful to give up your little luxuries in the here and now. Everybody wants to live a life to the fullest and they deserve to. They must enjoy whether it's a Sunday brunch or a movie date with a partner, while some people may be able to grin and bear these lifestyle sacrifices for the sake of saving more, micro-investing is different. You won’t even miss those few pennies each time you spend, allowing you to build savings in the background
Reach Long-Term Goals
You might just be able to achieve a long-term target much faster than you ever imagined just by stashing away more funds in savings. Funding for a house deposit or college fees demands careful preparation, however, some of the tension can be relieved through micro-investments. Money is transferred directly and yields interest. You won’t believe when you see how fast it grows!
Compound Real Estate Bonds - Your go-to platform for Micro-investing.
A platform that allows you to earn a competitive 8.5% Annual Percentage Yield (APY) on your investments. The platform deals with real estate bonds, where an individual can purchase bonds and invest in real estate with the potential for high returns. These bonds are backed by real estate assets, providing a level of security for your investment. The key feature of these bonds is the power of compounding, which helps your investment grow exponentially over time.
You don’t need to be wealthy to get started. Compound Real Estate Bonds are designed to be accessible, allowing you to start investing with a relatively small amount of money, as you can start with as little as $10.
Compound Real Estate Bonds offer automated investing options also. This means you can set up your account to automatically invest a portion of your savings into these high-yield bonds without having to manage it actively. And, another way to save your spare change with the Compound real estate platform is to enable the round-up feature (rounding each purchase up to the next whole dollar amount).
Conclusion
Micro-investing and Compound Real Estate Bonds are excellent ways to make your spare change work for you. Micro-investing allows you to build up savings without making significant lifestyle changes, and investing in Compound Real Estate Bonds offers a high-yield option with the benefits of compounding.
Whether you're rounding up your purchases or making small recurring investments, these strategies help you reach your financial goals faster than you might have thought possible. Start small, stay consistent, and let the power of compounding work its magic on your financial future.
