Looking at the millionaires and billionaires of today would make you think you need to move back in with your mum and build a tech company out of her garage to hit the big bucks.
But, tbh, your mum would be devastated if you said you were moving in for good, so that’s not really an option.
And besides, there are ways you can now get involved in companies that much smarter, luckier people have built in garages and rake in the rewards through their hard work instead.
Sound like piggybacking off someone else’s success? It is a bit, except we call it investing.
We know – investing sounds like a lot of effort. You probably need to have loads of money to get started, and to commit enough time to understand the mindwarp that is the stock market, you think.
Wrong. It’s 2018 and there’s an app that does it all for you.
Enter Moneybox. The app helps you round up your card purchases to the next pound and invest the spare change in thousands of global companies like Netflix, Tesla, Disney and Unilever via simple tracker funds.
So, if you buy a coffee for £2.40, the app will round it up to £3 and invest the 60p for you.
Moneybox is part of the growing trend of micro-investing, which is a more realistic kind of investment for the majority of people – less The Wolf of Wall Street, more Will of High Wycombe. Here’s why we should all be micro-investing if we want to make bank…
1. It could be wiser than saving
Interest rates are at their lowest in years (sob), with the Bank of England rate at a lowly 0.5%. Which means that, if by some miracle, you manage to put, say £500, into the bank, you’d manage to accrue a whopping £2.50 in interest each year.
Investing can be a great way to grow your money over time (at a faster rate than interest, at least). Obviously, returns aren’t guaranteed and you could get back less than you invest, but in the current climate, investments can be a smart alternative to a savings account.
2. It pays to start today
Literally. If you invested £2,500 each year for 10 years, starting at the age of 25, and yielded an average 7% return rate, you’d have £291,188 by the time you’re 65. Not bad for a bit of retirement dosh. Do the same starting at the age of 35, and you’d have just £148,025.
Sure, it’s still better than nothing, but it’s not better than almost double for the sake of starting ten years later. This phenomenon is called compounding, but you won’t care what it’s called if you’ve got almost £300k in the bank.
3. You might find it fun
Look, everyone likes making money. And you know what makes it more fun? Watching your investments work for you without having to do much.
With new digital ways to invest, it’s easy to check how your money is doing and see your investments (hopefully) grow – a habit that’s at least more productive than mindlessly tapping through Instagram Stories.
4. You’re the boss
With the likes of Moneybox, you’re always in control of the amount of money you’re investing. You can invest as much or as little as you like, from £1 to thousands each week (if you happen to have that lying around).
Or, if you want to ensure you don’t fritter your paycheque as soon as you get it, you can set up a boost on payday which means a set amount will go into your investments at the end of each month. You’re also able to check on your investments at any time, free of charge.
Find out more about Moneybox and download the Apple and Android app here
As with all investing, your capital is at risk. Projections are not a guarantee of future performance and you may get back less than you invest.