There are quite a few sites that advertise investing with your change.
Not that you get any money back nowadays because no one pays more in cash ...
But those apps round off your payments and then transfer the fictitious digital change , so always a small amount, to an investment account.
Sounds interesting, but does it work? No absolutely not! You even make a loss.
We will go through that with you, and also give you options that are many times more interesting!
There are a number of existing providers who already offer to invest in a smart way with your change. The first and largest party in this is Peaks from Infra Bank. Naturally, ABN Amro and Across Lender followed soon after by offering the same service.
They are in themselves very useful apps that look good and make investing easy. It is therefore very simple. The app rounds all your payments up to a whole US dollar. So if you buy something for $ 9.05, the app will take 10 US dollars from your account and deposit the remaining 95 cents into your investment app. Every week you can still choose to invest the collected money definitively. You can also make extra deposits or set a fixed deposit.
The disadvantage of this is that you have to give the app access to your account and all payments.
Investing itself in the app has been made super simple, because you can choose from a number of profiles: Mild, Spicy, Sharp and Hot. You can always switch this if you want. By the way, in such a portfolio you do not invest directly in shares, but in funds. That reduces the risk, but also the possible profit.
The disadvantage of this, we think, is that you have little control yourself, because you have no idea where your money really is. Perhaps investing has been made too easy with this.
The app does the rest by itself. The costs are fixed at 1 US dollar per month, until your invested capital exceeds 2500 US dollar. Then 0.5% of your assets will be. In addition, 0.2-0.4% of your return is taken off to pay the funds.
All in all, this leaves little return . If you invest $ 30 every month, with all portfolios except Hot you always make a loss in the first year! If you keep this up for 3 years, you have only made 8 US dollars in profit with the Mild portfolio, while you have already had to invest more than 1000 US dollars!
In fact, you only make an interesting return if you invest a large amount of a few thousand US dollars yourself. But that is of course no longer investing with your change. So the app actually misses its mark, and we even think that they are cheating the small investor a bit.
Because if you invest the aforementioned 30 US dollars every month, you will make a loss in the first year because you do pay the bank service costs, etc. So they earn from you , but you do nothing at all! Then you can save even better at a minimal interest.
Fortunately, there are good alternatives that can yield many times more. In any case, you will not be presented with a pretty picture by your own bank in order to earn money from you.
Not only because they are cheap, but also because they offer very good service, explanation and support to help you as well as possible to make the right choices. And with that you ultimately make a better return.
An emerging alternative market is that of cryptocurrencies. You know, the Bitcoin and similar digital coins. Perhaps this is still a very vague thing to you, but more and more people are finding their way to this way of investing. And that is not for nothing.
Putting your money in this currency can not only yield good money , it is also a completely independent market that is not regulated by governments and banks. They therefore have no influence on it.
This also shows that the prices in this sector are still volatile, but not so much moving with those of the major stock markets and stocks. In fact, because they are an alternative, they are often more valuable than the old-fashioned stock market.
Another advantage: in many cases the coins even cost less than 1 cent , so investing with a small deposit is certainly possible here. Always invest in this via the best crypto broker , because then you pay less costs and you have better service and protection. This has been the Litebit.eu platform in the Netherlands for a long time
Another nice option is peer 2 pear, or P2P. Technically, this is not investing, but investing. You then invest in loans to private individuals. There it is also called investing in peer to peer lending , because you are actually lending money to peers.
The advantage of this is that you are not dependent on exchange rate fluctuations, but simply conclude a contract where you lend money for a fixed period and a fixed interest . And that can amount to 19% per year! You can only achieve that with investing in shares if you take a lot of risk and are lucky ...
Another nice extra, with the special platforms that make this possible, you can even deposit from 10 US dollars per loan. That is real investing with change!
You also have the same kind of crowdfunding-like platforms that make P2P possible in the real estate market. So you no longer have to be able to buy an entire building to participate in that world. Estateguru is a good option with a 12% return , but you can also get started in NL via Exporo if the minimum investment there is 1000 US dollars. Read more in the article investing in real estate with little money .
You also understand that you can earn more from investing if you can also invest more in advance. Because 10% profit over 1000 US dollars really yields more than 10% profit over a few US dollars. But how do you get such amounts?
Well you can try to make money through the internet . We have listed several ways for this that are reliable and guaranteed to work. And then you just bring in a few hundred US dollars a month !
Certainly if you combine several methods, you will quickly be able to earn a nice capital with which you can invest as a major player. So get started quickly!