Behavioral economists have proved one big truth: The best financial decisions are automated.
If your bills get deducted on autopay, you are never late with a bill. Your credit score goes up. You never pay late fees.
If your healthy 401(k) contribution is automatically deducted from your paycheck for 30 years, you end up a millionaire at retirement. You mainly never miss the money.
So, what if you could invest change? Just a buck here and there.
With new financial apps you actually can.
The app Acorns rounds up small purchases. So if you buy a $2.50 coffee, it rounds up the price to $3 and invests the 50 cents in a portfolio of low-cost exchange-traded funds.
You can choose the level of risk, from conservative to aggressive. According to Money, one user saved $250 in a few months without noticing the difference.
A similar app, Digit, transfers small amounts from your checking into a savings account at times when you can afford it.
