Investing is intimidating, right?
If you’re anything like me, you might make excuses like “I don’t have enough money” or “The stock market isn’t safe” — and not do anything.
So your money sits in a savings account — and rots. Not even earning enough interest to keep up with inflation.
That’s how I dealt with my money, just hoping some investment fairy would come and show me the magical ways of stocks and index funds and compound interest.
But only until recently. I just started using an app that lets me invest in the stock market with just $1 a day.
Even better, it didn’t require me to get my master’s in finance to understand the terms, or give up my firstborn to pay the fees.
Here’s how it works…
How I Started Investing With Only $1 a Day
So how’d I finally start my investing journey? With an app called Clink.
To get started, you have to download the app, create a profile and link your checking account.
And right now Clink’s even offering a $5 signup bonus to new users.
You should always be cautious when giving out financial data, but I trust Clink because it doesn’t store your banking information on its servers or on your phone.
Plus, its platform uses bank-level security and data encryption — and the Securities Investor Protection Corporation (SIPC) insures your account for up to $500,000.
Once you’re finished registering, it’s time to determine how — and how much — you’d like to invest.
The smallest amount you can invest is $1 a day, which Clink automatically withdraws from your checking account. You can also choose to invest larger amounts on a daily, weekly, bi-weekly or monthly basis.
Or, you can link your credit card, and have Clink invest a percentage of what you spend.
So, for example, every time you use your credit card, the app could invest the equivalent of 5% of the total. Spend $25 on dinner, and Clink will transfer $1.25 from your checking account into your investment account.
I like this feature because it means you’re investing in your future — whether you’re spending money on things you enjoy or just paying bills.
But my favorite part? Clink’s fee is only $1/month (my savings account costs more than that!).
Where Does Clink Invest Your Money?
So where does your money actually go?
Stick with me here, because I’m going to use some investment words. Don’t get scared, though; I’ll hold your hand the whole way.
Clink allows you to invest without pretending you’re the wolf of Wall Street. Based on how aggressive or cautious you’d like to be, it automatically spreads your investments across a portfolio of six different Exchange Traded Funds (ETFs).
The funds are traded on the stock exchange and hold assets such as stocks, commodities and bonds.
Clink says ETFs are smart because of their “low costs, tax efficiency and stock-like features.”
After doing some Googling, it looks like Clink is on point here: Sources like Forbes, Kiplinger and U.S. News & World Report all say ETFs are ideal for new investors.
When you decide you’re ready to withdraw your money, you can do so anytime. It takes about five business days for the money to return to your checking account.
As for me? I’m going to let my money sit, grow and sit some more.
After all, that’s what will hopefully, someday, fingers crossed, lead to a wealthy — or at least less-broke-than-now — future.
Susan Shain, senior writer for Codetic, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.