micro investing

Micro Investing

What is Micro investing?

Microinvesting — the act of saving very small amounts of money regularly.

Research by Black Rock, one of the worlds biggest asset managers, found that more than 80% of the UK population don’t save regularly as they have no disposable income. I would suggest the same is in Australia.

Micro Investing is becoming more and more popular as the rise of living increases. The daily telegraph reports that in the last 5 years, childcare costs have risen 44%, electricity rose by 25% and medical expenses went up by 39%. People just don’t have the disposable income to but into traditional investments regularly.

Technology has given an excellent opportunity to investment companies to directly converse with the everyday investor on a micro-level through the increasing acceptance of apps.

Who is Micro Investing For?

The financial times alludes to Micro Investing as being the way to make investing manageable for young people, those on low incomes or those with little or no assets.

I believe Micro Investing is great for anyone who wants to increase their income and start to save. The  returns are on a % basis, so the more you have in a micro investing app, the more you will return.

I have been testing some of these Micro Investing Apps and find that most of them are legitimate and do help you save money. You wont become a millionaire overnight, and anyone who says you will, is full of it.

Where to Invest.

The key to all good investment is diversity and Micro Investing is no different

Acorns is a managed fund share market platform. My Acorns account has returned 15% in two years, but this is not indicative of the past 3 months performance.

I have a little amount in BrickX, BrickX is a platform that allows you to buy small shares (bricks) in investment houses. Your rental return is dependant on how many ‘Bricks’ you own.

Cryptocurrency is an amazing phenomenon. Just set up your Virtual Wallet, like CoinJar and find a trading platform that trades in Bitcoin.  USITech are a company that invests in packets of Bitcoin. You are able to buy packets of Bitcoin with your CoinJar and the bitcoin bits are then traded with you receiving the return % on a daily basis.

On Market is another Micro investing app that invests in small startups. On Market do have minimum capital investments and may not suit everyone’s budget, but I think it is a good one to aim for.

In the coming weeks I will expand on these Micro Investing Apps, to give a detailed explanation of my experience with them.

 

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