A Handful Of Nickels

Updated: Apr 9, 2019


You can round up your Starbuck’s purchase by a nickel for the rest of your life, and then you’ll have a handful of nickels. If you want to do that, that’s okay. But if that’s your only plan, you should prepare to be hungry at retirement.

- Famous Financial Coach/ Adviser who shall remain nameless


I think many “Financial Advisers” miss the big point. Micro investing is not meant to be the answer for retirement savings but instead it can used as a vital tool to help you achieve a myriad of financial goals that traditional retirement plans won’t allow you to tackle. You must always remember a tool is only as good as the hand that wields it, and a skilled hand can use micro investing in a lot of ways that help overall financial health. Let’s start with the biggest advantage. Access to your money!


Debt Reduction

It is stated over and over again that investing for the long-haul takes work, and that starting small by investing enough to get the match in your company 401(k) will get you way further than saving handfuls of change on a micro investing app. But a 401K isn’t helping you pay for stuff you need right now, and what you need now is help tackling the things that hit the monthly budget. Using the micro investments to augment and supplement debt payments allows you to hammer down debt at amazing speed and snowball the freed-up cash to other debts.


Emergency savings

Another aspect that hangs over the heads of many Americans is that they don’t have enough in saving to handle a $1000 emergency. This is where tools like micro investing apps can really kick things into overdrive. If planned properly a regular weekly infusion supplemented by round ups can help investors reach their goal quickly by compounding the round ups where interest accumulation would otherwise take to long.


Take this example, starting with $100 dollars, if you just put in the bank at 2% interest and added $5 week your total at the end of the year would be $365.22 where as if you used a micro investing app and scrounged up another $5 a week infused through round ups you would save around $625 by the end of the year. That is a 71% difference in what your able to save in the same amount of time. I will let the numbers speak for themselves and remind you that a creative mind will find the value in a good tool.