I don’t own a Twitter account. That might be a digitally blasphemous thing to say in the 21st century, but I’ll weather the slings and arrows. I just don’t see the value in owning one. You have to be famous to amass followers who will add to your fame or buy products. Most followers are following people for gossip, news, or promotional transactions.
I guess I am becoming more curmudgeonly, in a Mr. Burns-type manner, as I get older.
Usually, I focus on daily struggles like increasing my pay, figuring out how to pay my bills, and then wash, rinse, repeating. I was young once, so I read periodicals to follow celebrity and political quotes. So, I get it. It just isn’t my thing anymore. However, I came across a Tweet from a financial expert, Douglas Boneparth, at one of the financial news websites I regularly follow, CNBC.
I never heard of him before, but his tweet resonated with me since I am an inexperienced investor. Basically, Boneparth remarked that people with $1,000 in investment capital, especially inexperienced investors, always ask him for investment tips. Boneparth then said that he usually advises people to save the money in a high-interest bank account.
His thinking is that if you have to ask around for hot stock picks, or don’t want to feel as though you are missing out, then you aren’t ready for investment. Boneparth is essentially saying that there are easier ways to lose $1,000.
While it is may be harsh advice, it is sound. Investing should only be attempted with a long-term strategy in mind. It takes time to gain the experience to appreciate that one can expect modest returns over the years. That is why micro-investing apps could be a great way to learn this skill.
Micro-Investing
Micro-investing apps and online platforms allow users to invest with small amounts of money, sometimes even spare change. Most investors have access to significant sums of money with which to invest. Micro-investing allows people with limited incomes the ability to invest on a small scale. And, to gradually learn the need for long-term investing strategies.
Stash
Stash is a micro-investing app that teaches novice investors how to invest instead of autonomously investing in their stead. You don’t need spare change round-ups, like similar micro-investing app Acorns, to invest. Unlike robo-advisors, you stay in control as well. All you need to begin investing with Stash is $5. After signing up, you will be prompted to answer questions about your financial ambitions and investing risk tolerances.
Stash then presents a suggested list of ETFs and stocks to help you design a diversified portfolio. In fact, if the app notices that you are not diversifying, it will initiate a Stash Coach feature to educate you on the need for diversification.
An Educational Investment App
There are over 150 investing opportunities offered on Stash, including Amazon, General Electric, and Facebook. Stash explains investing terms in easy-to-understand terms. The monthly service fee is $1-a-month for balances under $5,000 and an annual 0.25% fee for balances over $5,000. That may sound steep for small balances, but it is important to remember that this is a micro-investing app that is best suited for financial education purposes. Investing is a long-term game, after all.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.