From $5 to $35,000: My Journey with Acorns and the Power of Small Investments
How Investing as Little as $5 a Week Transformed My Financial Future
Please note: This article is for informational purposes only and should not be considered financial advice. Always consult with a financial professional before making any major investment decisions.
Stick around to the end to find out how you can get a free bonus for starting your Acorns investing journey today!
Introduction
Are you eager to get started with investing, but now sure where to start?
Getting started can be scary but I promise you, it’s the hardest part of the journey.
Once you begin your investing journey and put it on auto-pilot, you basically never have to look at it again if you choose.
Let me take you on a journey that started with just $5 a week — just a few bucks, cheaper than your Starbucks coffee.
It was 2018, I was making less than $30,000 per year, living less than paycheck to paycheck, and I knew I had to find a way to begin investing or I would always be behind.
My number one question at the time:
How in the world am I going to save or invest anything when I can barely pay for my gas and groceries?
The answer came in the form of a new app at the time.
Enter Acorns, an app that promised to make investing as easy as continuing my daily routine.
No stock picking, no research, no logging in every month to reinvest dividends or schedule a transfer.
But let’s be real — starting small can feel a bit insignificant at first. I remember thinking,
“Is this tiny amount even going to get me anywhere?”
Trust me, I’ve been there. The idea of turning pocket change into real money seemed like a joke at the time, and it didn’t get much better for the first few months, but I got started and stuck with it!
My Early Days with Acorns
The beginning of my Acorns journey can only be described in one word:
Slow
Ok and maybe one more word:
Uninspiring
But stick with me because it was worth it in the end…
It was 2018, and my financials were a work in progress. I was intrigued by the idea of growing my savings but equally cautious.
It’s crazy to think this was only 5 years ago, but this was the early days of financial YouTubers — believe it or not, Graham Stephan was still mainly just posting real estate videos at the time. Andrei Jikh was still a magician practicing on the Las Vegas strip, and Meet Kevin fortunately hadn’t made his debut yet.
I did not have any money to invest.
It was bad to the point where I had to ask my roommates to venmo me their rent a week early so it had time to clear my checking account before I had to cut the rent check or the check would have bounced, on a good week.
Either way — I downloaded Acorns and got started with $5 per week. It was so little, I couldn’t afford not to at least get started.
Admittedly, at first, watching my account slowly inch upwards didn’t exactly feel like any progress.
As the account grew from $5-$35, there definitely days where I felt like cashing it out and saving myself the $5 each week because at least it would be $5 closer to making rent.
I stuck with it though and started the habit of not letting myself log into my account more than once per month.
Especailly in December of 2018 when the Santa Rally turned into the Christmas Mega Dump (or MAGA dump).
Understanding Acorns: How It Works
At its core, Acorns is a robo investor. It’s a service that allows you to set-up auto investments on a reoccurring basis of your choosing, then it auto-invests in index funds based on your risk profile.
It’s important to note that over the past few years the app has added new features that allow stock picking, retirement funds and 529 accounts, but at it’s core it’s functions remain the same and just as simple to use.
The app’s standout feature, and my personal favorite, is Round Ups.
Imagine buying a coffee for $3.50, and the app rounds it up to $4, quietly stashing away that extra 50 cents. It’s the exact same concept as if you were paying with cash and took the change out of your pocket at the end of the day and left it in your sock drawer to be forgotten about. In the case of Acorns though, that extra change is being auto invested and will earn money instead of depreciating in value next to your under ware.
Then there’s the recurring investment feature, the real game changer for building a habit of saving.
You set an amount — as little as $5, in my case — and a frequency, and Acorns automatically invests that amount into your account. It’s like a subscription, but instead of Netflix, you get that money back in the future and likely worth a lot more then when you started.
How is the money invested?
Acorns invests your funds in diversified portfolios of index funds, which are collections of stocks and bonds. These portfolios are designed by financial experts to fit different levels of risk tolerance.
Essentially, Acorns takes the complex world of investing and distills it into something straightforward and approachable. No need to track stocks or read market analyses; the app does the heavy lifting.
All you need to do is stay consistent on the sidelines, make your everyday purchases, and let Acorns do the investing for you.
The Growth Journey
As I mentioned before, it was a slow, uneventful start, but when those investments started to snowball, it got really interesting.
“Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it.” — Albert Einstein
I started with just $5 per week, but when I felt comfortable I started to bump up the investment.
Each increase in my weekly contribution started to show it’s impact within a few weeks. It wasn’t just an extra $5-$10 per week, it was compounding with the existing funds and dividends.
Over time, as I got raises at work, changed jobs and kept living below my means, I was able to gradually bump up my investment to $300 a week.
This didn’t happen overnight. I was able to do this because I not only stuck with it for 5 years but I put work into improving my skills, making myself more valuable at work, and seeking higher paying jobs and side-gigs.
Witnessing my account grow from less than $50 to over $35,000 was beyond rewarding. It not only proved the power of compound interest and time in market vs timing the market, but it’s made me sleep better at night knowing that I have a small nest egg growing for the future. If this is how much it’s grown in 5 years, I can’t begin to imagine where it will be in 20 years, 30 years and beyond.
But it wasn’t all smooth sailing.
Investments don’t always go straight up, and trust me, you don’t want them to because that’s a sign of greed and a coming market crash typically. So there were weeks, months, and even years where my investments were trending downward. Through it all though, I stayed the course, kept investing, and focused on the long game.
The payoff always comes in quarters like this (Q423) when the market is surging and my investments grow by thousands of dollars per week.
This journey with Acorns has taught me not just about the importance and power of investing, but about patience, resilience, and the foresight.
Tips for New Acorns Users
If you’re just starting out with Acorns or considering it, here’s some (Not financial advice) from my own experience.
- First, start small but start now.
- Don’t wait for a ‘perfect’ financial situation; the power of Acorns is in making the most of what you have
- Second, embrace the Round-Up feature.
- It’s an effortless way to boost your savings without feeling the pinch. Before you know it, the spare change can add up to a significant amount.
Consistency is key.
- Regular contributions, even small ones, are better than single large deposits. It’s about building a habit and sticking to it.
- Patience is crucial. Don’t be discouraged by short-term market dips. Investing is a long-term game.
- Remember the power of compound interest.
- Lastly, learn with the app. Explore its features, understand where your money is being invested, and don’t hesitate to adjust your contributions as you need to.
Ready to Grow Your Savings with Acorns?
Ready to turn your spare change into a growing investment?
Why wait any longer to start your own journey towards financial freedom?
Download the Acorns app today and begin with whatever amount you’re comfortable with.
Remember, no amount is too small when it comes to your financial future. Let your journey of savings and investment growth begin now.
“The best time to plant a tree was 20 years ago. The second-best time is now.” — Chinese Proverb
Start Investing with Acorns Today and Get a Free $5 Bonus!
Click the link above or scan the QR code to download the app and get started.
Your financial future is just a few taps away!
This article contains product affiliate links. We may receive a commission if you make a purchase after clicking on one of these links.
