You may have read a Stash review and wondered whether this investment app can make you money. Like any investment, it comes with risk, but when used correctly it’s possible to make money with little to no effort.
In many ways, it’s similar to platforms you may have read about in reviews on M1 Finance, SoFi Invest, and Betterment. It’s a robo-advisor.
So, how can you use Stash to help you make money with little to no effort?
1. Start with a Low-Risk Balance
Investors who fail ignore the advice in traditional personal finance books of going into the world of investing with baby steps.
Always start your investing career by only investing a small amount until you get the hang of how everything works.
Stash is one of the best robo-advisors for this because it operates an account minimum balance of $0. Its lowest-priced account charges just $1 a month, so you can easily throw in a few hundred dollars and begin building your portfolio.
2. Learn About Your Investments
Not everyone wants to become Warren Buffet overnight. You don’t have to if you want to become a successful investor. There are avenues you can take to learn about hot stocks and how the market works.
For example, you can take a look at the Motley Fool’s stock picks for some inspiration. They have a solid track record. If they’re suggesting that social media stocks are about to boom, you’ll find out how to invest in that market on Stash.
It’s all about taking an interest and understanding, at a basic level, what you’re doing. It’s your money and your future.
3. Seek Out Great Educational Resources
Making money on Stash is not just about listening to others about how to make money online. It’s about advancing your own base knowledge.
All members of Stash have access to a selection of educational resources and support. It’s a community you can connect with. Over time, you’ll learn about how the market works and how you can prepare to weather the ups and downs of the investment scene.
Stash regularly updates the resources on offer, so it’s always worth checking back for updates.
4. Invest Your Pennies With Fractional Shares
One of the unique additions on Stash is that you have access to fractional shares. The fractional shares model is what makes this one of the best investing apps around.
Through a traditional brokerage, you need to buy a whole stock. So, if you bought a share in Amazon it would cost you around $3,000 in Q1 of 2021. Maybe you can’t afford to buy a single share in Amazon right now.
With Stash, you can invest in fractional shares. Stash buys the stock and then splits it between all its investors. You can own whole individual stocks, but if you only have $1,000, it’s not going to lock you out of Amazon’s gains.
This is also an ideal strategy for diversifying your portfolio on a budget. You can invest in multiple different areas and reap the benefits of everything from high dividend stocks to shares with big growth potential without breaking the bank.
5. Save With Every Purchase
Read through the old personal finance books and they will tell you about the need to be disciplined. They will also tell you how the vast majority of people lack this basic discipline and so they miss out on big increases in their portfolios.
Budgeting is a big issue for Americans, with 32% of American households not even possessing a household budget. To make matters worse, the majority of Americans couldn’t pay for a basic emergency or even gain a positive cash flow.
Stash allows you to automate your saving. Enable Stash’s automated saving feature and you’ll be able to transfer a portion of every purchase to your investment account.
For example, they can round-up every purchase to the nearest dollar and bank that in your account. Maybe you want every purchase to be rounded up to the nearest five dollars, or even ten. Either way, it’s a cool, easy, automated way of saving.
Who is Stash the Right Fit For?
Stash is like any investment product. It’s aimed at a specific market and isn’t suitable for everyone. If you have a large net worth, a more traditional financial advisor may be the best choice for you.
Also, if you’re someone who’s highly educated and has a lot of investing experience, this product isn’t for you. It’s designed for people who are looking to enter the market for the first time.
For people who are trying to get their finances in order and begin wealth building, Stash is a top-tier choice.
Their low subscription fees and automation features are bringing the practice of investing to a whole new audience.