Change Investing - Popular Among Millennials
Now micro-investing is possible where you can save small sums of money like your spare change and invest it. This makes investing possible for millennials and cultivates the habit of saving regularly in them.
Whenever you purchase groceries, food, clothes or anything else you can invest the spare change. This concept has become popular with millennials who do not have much money to invest. They are ready to invest small amounts to create wealth.
The concept of micro-investing is used in ‘Change investing’. Investors can regularly save small sums of money and invest it. In your early years, you may be collecting pocket change in your piggy bank which you get from your elders like parents and relatives. Saving money little by little is taught to you early in life.
Similarly, you can use apps to save and invest small amounts of money. These apps allow you to save your spare change and invest it. When you make a purchase using your payment card or net banking the app will round off the amount spent to the nearest round-off amount.
You can fix the round-off amount in the app to be the next Rs. 10, 50 or 100. When you buy something the app will invest the spare change in investments of your choice. The spare change which is the difference between the amount spent and the round-off amount gets collected as you spend. The app will ask you to invest this money in the financial assets offered by it.
Features of the app
The app offers a feature that can be used to select a certain amount as a minimum amount to be invested. Each time you spend the spare change keeps adding up and accumulating. When the amount crosses Rs. 50 it will get invested automatically in a preselected fund of your choice.
The money gets invested multiple times in a month and offers an advantage when compared to SIP - Systematic Investment Plan. Small sums of money are invested in funds that you may otherwise overlook.
The app allows you to save money in an easy way and investment can be easily done at your fingertips.
Should you consider this investment option?
Many organisations are offering apps to invest the spare change. The aim is to inculcate a habit of saving and investing in a simple and fun way. Users can continue to spend money as they do and invest small amounts at the same time.
