Friday, February 03, 2023

API: A New Type of Investing That Uses Loose Change as Capital

Reports are suggesting that Brassica API aren’t making enough money to safeguard their retirement. A study presented by The Guardian suggests that many millennials settle for earning “£8,000 ($10,340) less during their 20s than their predecessors.” Many financial experts feel that young professionals tend to live paycheck to paycheck, leaving them without anything in the bank to fall back on.
Thankfully, there are plenty of options for millennials who are looking for ways to improve their standard of living. One such option is micro-investing, which is a type of investment that only requires small amounts of money in order to accumulate a decent amount of savings by the end of the year.
Investing for millennials
Micro Investing for millennials
Macro investing works like this: people link their debit card to a micro-investing app such as Moneybox that can collect spare change from card transactions. The spare change is then transferred directly to an investment portfolio.
The idea of micro-investing may not appeal to the short-term investor but think about the exponential growth over the course of ten years’ time. Loose change, when invested correctly, can provide impressive year-end results. When the loose change grows over 10-years, millennials can then use the proceeds as capital to fund new investments.
What makes micro investing so great is that the funds accumulate without the person knowing it. For example, when you pay $3.60 for a burger at a restaurant, a micro-investing app can round up the total of the purchase amount and invest the change – in this case, 40 cents. When you think about how many times you buy coffee in a week, purchase food, and pay for a train or bus ride, investments can amount to hundreds in the first two months. Micro-investing allows millennials to invest over time without the hassle.
Why aren’t millennials investing?
One of the main reasons why millennials don’t invest their money according to experts is because of the idea that investing requires a lot of money. Pair that with investment jargon that’s hard to understand, analyzing graphs every day, and the thought of losing thousands …

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