Myths of Micro-investing - does it really work?



Dec 4, 2022

Myths of Micro-investing - does it really work?



<p class="para">Micro-investing or micro-saving, if you haven’t heard of it, then you might be interested to find out how this strategy can work in small but significant ways to get you closer to your savings goals!</p>

<p class="para2">Why consider a micro-saving or investing strategy?</p>

<p class="para">As the saying goes, the earlier you start the better! And this certainly applies to your long-term saving and investing goals. Generally speaking, for long-term investing the best time to start was yesterday, the second-best is today, and the third best is tomorrow! This is because an important aspect of long-term investing is (amongst other things) time in the market. The more time you have to save or invest, the easier it can be to reach your goals because you get to take advantage of compound growth.</p>

<p class="para">Side note: Compound Growth is when you generate earnings which are then reinvested to generate their own earnings. Compounding is commonly associated with interest or returns.. It may not make a huge difference immediately, but over time it can increase by larger and larger amounts each year, and this snowball effect can create huge benefits over time.</p>

<p class="para">Unfortunately, many people wait until they “have enough” to start saving or investing, telling themselves they’ll save more next pay or next month, only to find themselves at the end of the pay cycle or month with nothing left over! And the elusive one-day doesn’t come!</p>

<p class="para">Enter micro-saving or micro-investing as a strategy to get your savings started!</p>

<p class="para2">How does micro-saving and investing work?</p>

<p class="para">Well, if you can remember back to the days when you would use a piggy bank to save up your small change… then you’ve already experienced the basics of a micro-savings and investing strategy. Over time as you put your spare coins and extra money in the jar, or piggy bank, you’d accumulate money towards your goals.</p>

<p class="para">Micro-saving and investing is seen as a modern-day answer to the savings jar or piggy bank. Only better, because on top of your regular savings and spare change, you may receive a return and can also take advantage of the benefits of compounding.</p>

<p class="para2">Micro-saving and investing occur in a couple of ways.</p>

<p class="para">If you’re using an app like Blossom, you can choose small amounts to invest on a daily, weekly, or monthly basis depending on what you can afford. This regular investing is a term called dollar-cost <a href="" class="ghost-link">averaging</a>.</p>

<p class="para">Side note: Dollar-cost averaging is the term used to describe the strategy of making regular incremental investments over a period of time as opposed to a one-off lump sum investment. In theory, this strategy can reduce the market timing risk of investing and smooth out the volatility by spreading out the time when you invest.</p>

<p class="para"To set up a micro-savings or investing plan is simple. You need to link your bank account to your Blossom account through the app and select an amount and frequency that you want to have debited from your bank. That amount is then withdrawn from your bank account according to the schedule you set, and invested for you.></p>

<p class="para">In addition to setting up a regular savings plan, you can also choose to round up your spending to put that extra “change” into your savings account. These “round-ups” are when you put small regular or irregular amounts into your savings account from everyday transactions.</p>

<p class="para">For example, a coffee purchase of $4.50 can be rounded up to $5. Your spare $0.50 will be set aside. Once your spare change accumulates to $5, $10 or $20 (your choice!), it will be automatically transferred to your Blossom account. With round ups, you can link your bank account and the app will scan your transaction history and find money to invest automatically.</p>

<p class="para2" style="margin-top: 75px !important; margin-bottom: 80px">What makes micro-investing a good thing?</p>

<p class="para">Micro-saving and investing enables you to get started with a small amount of money. Which makes it both simple and convenient. When you invest this way, you gain access to a diverse portfolio with a small amount of money. Like really small. If you were going with traditional methods, you might struggle to buy into any kind of fund, even with a few hundred dollars to begin with.</p>

<p class="para">Another benefit is that you can set and forget by using the automation feature. When you choose to set up your regular savings and investment plan or roundups. You can also put more money into your account at any time.</p>

<p class="para">Micro-savings and investing are great ways to start building good financial habits, investing regularly in small yet consistent ways. Why not give it a try yourself?</p>

<p class="para">All these features are available through the Blossom app. Blossom strives to make saving simple and affordable for all. You can get started with as little as $1, and there are no sign-up, transfer or withdrawal fees. Blossom is here to help you do more with your savings!</p>

<p class="para" style="padding-bottom: 7px">It's easy to get started:</p>

<p class="para"></p>

<ol class="single-blog"><li><a href="" class="ghost-link">Sign up in minutes</a> – through the iOS or Android App and get started on the web</li><li><a href="" class="ghost-link">Fund your account</a> – you can automate your top-ups or put your savings on auto-grow</li><li><a href="" class="ghost-link">Set a savings goal</a> – or save it for later</li><li>See your savings Blossom every day – enjoy 5.95% p.a. targeted returns posted daily!</li></ol>