In today’s fast-paced world, saving and investing can seem daunting, especially when you’re juggling a career, side hustles, and managing day-to-day expenses. If you’re one of those people who feels like you don’t have time to think about investing, or perhaps you don’t have enough money to get started, Raiz (formerly known as Acorns) is here to change that.
Raiz offers an easy, stress-free way to start investing without needing to be a financial expert. With its micro-investing approach, Raiz allows you to grow your wealth through the power of spare change.
In this post, we’ll dive into what Raiz is, how it works, and how it could fit into your side hustle strategy or your journey toward financial freedom.
What is Raiz?
Raiz is a micro-investing platform that originated as Acorns in the U.S. before rebranding itself in Australia. The app is designed to help people invest small amounts of money by rounding up their everyday purchases to the nearest dollar and investing the difference.
For example, if you buy a coffee for $3.60, Raiz will round up the purchase to $4.00 and invest the extra $0.40 into a diversified portfolio of ETFs (Exchange Traded Funds). It’s a clever way to painlessly grow your savings over time without you even realizing it!
How Does Raiz Work?
Raiz makes it incredibly easy to start investing. The platform works by linking to your bank account and rounding up every purchase you make. Here’s a step-by-step breakdown of how it works:
- Download and Sign Up: Download the Raiz app and sign up by linking your bank account and/or credit cards to the app.
- Round-Ups: Every time you make a purchase, Raiz rounds up the total to the nearest dollar. The spare change is collected and, once it reaches a set threshold (usually $5), it’s automatically invested in a portfolio of your choosing.
- Recurring Investments: You can also set up recurring investments. For example, if you want to contribute $10 or $20 weekly to your investment portfolio, Raiz will automatically withdraw the funds and invest them for you.
- Choosing Your Portfolio: Raiz offers a variety of portfolios ranging from conservative to aggressive, depending on your risk tolerance. These portfolios are made up of ETFs that spread your investment across multiple assets, including stocks, bonds, and even socially responsible investments.
- Watch Your Investments Grow: The app allows you to monitor the growth of your investments in real-time. You can view your portfolio balance, check performance, and even add or withdraw funds whenever you want.
Why Raiz is Perfect for Beginners and Side Hustlers
1. You Don’t Need a Lot of Money to Start
One of the biggest barriers to entry in investing is the belief that you need a lot of money to get started. With Raiz, this couldn’t be further from the truth. You’re literally investing your spare change! This makes it an excellent option for anyone who’s just starting out on their financial journey or running a side hustle and doesn’t have a lot of disposable income to dedicate to investing.
2. Set It and Forget It
Raiz’s micro-investing model is a great way to automate your investments. You don’t have to actively think about setting aside money or constantly monitor the stock market. As long as you keep making purchases, Raiz will round up and invest for you automatically. This is perfect for busy side hustlers who are already balancing multiple streams of income.
3. Diversification Made Easy
Raiz does the hard work of diversifying your investments. By pooling your money into ETFs, the app spreads your investment across a wide range of stocks and bonds, which reduces your risk compared to buying individual stocks.
4. Low Fees
Raiz charges relatively low fees. There’s a monthly fee of $3.50 for account balances under $15,000, which is reasonable for the convenience and simplicity the app provides. For accounts over $15,000, Raiz charges 0.275% of the balance per year. The fees are much lower compared to many traditional financial advisors or wealth management services, making it a cost-effective way to dip your toes into the world of investing.
5. Great for Side Hustlers
If you’re side hustling and earning extra income, Raiz provides an easy way to put that money to work without a lot of effort. Every time you use your side hustle earnings to pay for everyday expenses, you’re also contributing to your long-term financial growth.
Benefits of Using Raiz
1. Helps Build Good Financial Habits
Raiz encourages good financial habits by making saving and investing automatic. You won’t miss the spare change, but over time, it can add up to a significant sum.
2. Accessible for Everyone
Whether you’re a college student, a side hustler, or someone simply looking to build wealth, Raiz makes investing accessible to all. You don’t need to be a finance expert or have a huge budget.
3. Socially Responsible Investment Option
For those who care about where their money goes, Raiz offers a socially responsible investment option that focuses on ethical companies and sustainable practices.
4. Additional Features
Raiz offers features like Raiz Rewards, where you can earn cashback on purchases from partner retailers, and Raiz Kids, which allows you to invest for your children’s future. These perks make the app even more appealing for long-term financial planning.
Are There Any Downsides?
While Raiz is a great option for micro-investing, there are a couple of things to keep in mind:
- Fees on Small Balances: While Raiz’s fees are low, they can be high as a percentage of your balance if you’re just starting out with a small amount invested. For instance, paying $3.50 per month on a $100 balance is quite expensive.
- Limited Control: Raiz selects the portfolio for you based on your preferences, so you don’t have control over individual stock selections. This is fine for passive investors, but if you’re looking to actively manage your investments, this might not be the best option.
Is Raiz Worth It?
Raiz is a fantastic app for beginners who want to start investing with minimal effort. If you’re already side hustling and looking for ways to grow your wealth, Raiz is a perfect complement to your strategy. You can invest without thinking about it, and over time, your spare change could turn into a tidy sum.
For anyone who has ever felt overwhelmed by the idea of investing, Raiz makes it incredibly simple to get started. It’s perfect for people who are busy with side hustles or just trying to manage their day-to-day finances. By rounding up your purchases and investing automatically, Raiz turns passive savings into long-term growth.
Final Thoughts: Get Started with Raiz Today!
Raiz is an excellent option for anyone looking to start investing with very little money. Whether you’re just starting your financial journey or supplementing your side hustle income, Raiz offers a hassle-free way to build wealth over time.
The app is easy to use, affordable, and perfect for people who want to invest without the complexity of managing individual stocks. Ready to get started? Sign up for Raiz today and take the first step toward growing your financial future—one spare change at a time!