Can you get rich off Acorns?

Answered by Jeremy Urbaniak

When it comes to investing, it’s important to have realistic expectations. Acorns is a popular investment app that aims to make investing more accessible and easy for beginners. While it can be a useful tool for saving and investing, it’s unlikely that you’ll get rich quick from using Acorns alone.

One thing to keep in mind is that Acorns charges fees for its services. The basic Acorns account has a monthly fee of $1, while the Acorns + Acorns Later + Acorns Spend bundle costs $3 per month. These fees may seem small, but they can add up, especially if you have a small balance in your account. If you’re investing a small amount of money, the fees might eat into your returns and make it harder to see significant growth.

Another factor to consider is that Acorns primarily invests your money in exchange-traded funds (ETFs), which are diversified portfolios of stocks and bonds. While this can help spread out your risk, it also means that your returns may not be as high as if you were investing in individual stocks or other higher-risk investments. Acorns aims to provide steady, long-term growth, rather than quick and dramatic gains.

Additionally, investing in the stock market always carries some level of risk. The value of your investments can go up and down, and there are no guarantees of returns. It’s important to have a long-term investment strategy and to be prepared to ride out market fluctuations.

That being said, Acorns can be a useful tool for those who struggle with saving and investing. The app has features like round-ups, where it rounds up your everyday purchases to the nearest dollar and invests the spare change. This can help you save and invest without even thinking about it. Acorns also offers educational resources and tools to help you learn more about investing and make informed decisions.

In my personal experience, Acorns has helped me develop better saving and investing habits. It’s a convenient way to invest small amounts of money regularly, and it has made me more conscious of my spending and saving habits. While I haven’t seen dramatic returns from using Acorns, it has helped me build a small investment portfolio over time.

While Acorns can be a helpful tool for saving and investing, it’s unlikely that you’ll get rich quick from using it alone. The fees can be high if you have a small balance, and the returns may not be as high as riskier investments. However, if you struggle with saving and investing, Acorns can be a valuable tool to help you develop better financial habits and start building a long-term investment portfolio.