New to the Live Richer Challenge: Net Worth Edition? Learn more about it HERE.
Missed some of the Challenge tasks? Catch-up then come back…
Day 8: HERE: Ways to Increase Net Worth
Day 9: HERE: The Art of Negotiation
Day 10: HERE: Entrepreneurship
Week 2: Increasing Your Net Worth
Today’s Easy Financial Task: Start investing your money to grow your net worth.
How to rock this task:
- Learn why investing is essential for growing your net worth
- Take one step towards investing today
Welcome to Day 11, Dream Catchers!
Today, I’m going to teach you how to become a beginning investor!
Remember how net worth is calculated:
Your Assets - Your Liabilities = Your Net Worth
We’ve talked about putting money into savings and repaying your debt so far.
It’s time to discuss investing.
Investing is when you devote money into funds or activities that will earn you returns or profit. Saving cash in an emergency fund for rainy days is very necessary. But money in a basic savings account is an asset that may earn you very limited (if any) return from interest.
On the other hand, investing in assets like stocks, bonds, retirement funds, and more can increase your net worth exponentially.
Today, I’m going to share two steps you can take to get started investing.
***Before moving forward, I do want to mention that investing in anything (stocks, funds, etc.) comes with risk. Please know that the resources in today’s task are meant to inform you. The choice of where you want to invest is solely your own.**
Now let’s move on!
Automating Your Investments With Acorns
If you're a newbie and unsure how to start investing, Acorns is a robo advisor that has a very low barrier to entry for new investors.
Robo advisors are systems that automate investing for you after you deposit money into an account.
Here’s how Acorns works:
Acorns invests your change for you and this change can add up quickly.
You tell Acorns your age, income, and investments goals and the app recommends an investment strategy. Acorns invests your change in ETFs from six asset classes.
ETFs are bundled funds that can be made up of stocks, bonds, and other assets. The type of asset mix that Acorns chooses for you will depend on your answers to the initial questionnaire.
How to Get Started With Acorns
Acorns connects to your bank account and transfers money into your investment account automatically. Here’s how to get started:
Step 1: Download the app for free HERE.
Step 2: Sign up for an account.
Step 3: Link your bank account.
Every time you make a transaction with your bank account, the app rounds your purchase up to the nearest dollar and invests the change.
You can also transfer $5 to $50,000 extra into the account whenever you want!
Acorns is a good way to put a little extra money into investments alongside your other retirement accounts such as an IRA or 401k that you have with an employer.
Fees: Acorns does come with a fee. Most robo advisors charge a fee to handle your account, so this isn’t out of the ordinary.
- The fee is $1 per month for accounts under $5,000
- The fee is 0.25% per year charged monthly for accounts over $5,000
If you’re a college student with an .edu email address, you can have your management fees waived for four years.
Watch a FREE Stock Investment Q&A
Signing up with a robo advisor like Acorns is a hands-off approach to investing.
What if you want to take a more personalized approach to investing your cash?
I have a solution for that, too!
Alanya Kolberg is one of the AWESOME instructors that teaches a course in my school, the Live Richer Academy.
Alanya is a self-taught stock investing expert. In her course, Investing: How to Buy Your First Stock, she gives you step-by-step instructions on how to:
- Open an investment account
- Choose an investment strategy
- Evaluate stocks
- Make your first stock purchase
She recorded a FREE Q&A introduction video about stock investing.
You can check it out below.
Side note: Enjoy this video? There’s a lot more where this came from. In the Live Richer Academy, teachers like Alanya bring you courses on topics like investing, homebuying, starting a business, and much more! Learn more HERE.
Did you get this freebie from Day 4's task? There's still time. To help you increase your investments, Ellevest is redefining investing for women, and you're sooo invited. Get exceptional tools to reach your biggest goals.
Start by getting your FREE, personalized investment plan from ElleVest. A financial advisor would typically charge you $1000 or more to create this plan for you. But I got the hook-up!
Get your free plan here:
Today, you have a choice to take action with one (or ALL) of these things...
- Look into robo advising via an app like the Acorns investing app HERE
- Watch the Q&A with Alanya to get started with stock investing on your own
- Get your FREE Investment Plan from Ellevest here: https://thebudgetnistablog.com/ellevest
This action element is important. Gaining knowledge about investing and increasing your net worth is GREAT.
But taking action is what’s going to ultimately lead to you building wealth!
That’s it for today!
Share what you’re doing today with your friends on Twitter!Today, I took a step toward INVESTING and increasing my net worth! Day 11: #LiveRicherChallenge #LRCNetWorth Click To Tweet
If you have any questions, hit the comments below or reach out to the other Dream Catchers in the Live Richer Facebook Forum.
Don’t forget to keep tabs on your accountability partner(s)!
Teamwork makes the dream work.
You can reach out to me here:
Facebook: The Budgetnista
Private Forum: Dream Catchers : LIVE RICHER
P.S. Don’t forget to get your free Live Richer Challenge: Net Worth Edition Starter Kit. GET IT HERE.
P.P.S. Here’s a copy of the Challenge Calendar. It’s a fun way to keep track of your progress.
Want to work through the Live Richer Challenge: Net Worth Edition in a workbook? It's part of a bestselling series!
Click the link below and get your copy.
My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters, I’m the most protective of her. Before I share any product or service with you, it must pass my Lisa Rule.
What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to. YOU are my Lisas. I feel protective of you and your financial journey.
Acorns & ElleVest pass my Lisa Rule. Yes, I am an affiliate of Acorns and ElleVest, and I earn a commission from referrals, but I would not recommend a product or service that I didn’t believe was helpful and useful.