Introduction: How Micro-Investing Milestones Show Us the Power of Compounding
Micro-investing is a relatively new concept that has been gaining traction in recent years. It involves investing small amounts of money into a variety of investments, such as stocks, bonds, and mutual funds. This type of investing has become increasingly popular due to its low barrier to entry and the potential for high returns. One of the most powerful aspects of micro-investing is the power of Compounding Returns. Compounding returns are when the returns from an investment are reinvested, allowing for exponential growth over time. This article will explore how micro-investing milestones show us the power of compounding returns.
Stash Milestones
Stash is a popular micro-investing app that has been around since 2015. It allows users to invest small amounts of money into a variety of investments, such as stocks, bonds, and mutual funds. Stash has seen tremendous growth over the years, with over 8 million users and over $2 billion in assets under management. This growth is a testament to the power of micro-investing and compounding returns.
The growth of Stash’s popularity is contributed to people actually making money by Stashing. Yes, it’s a paid app that cost as little as $3/month but for some people they won’t save money unless they set it and forget it like Stash offers by micro-investing routinely. Think of the money you put towards your Stash Investing Account as yet another subscription service like itunes or netflix.
When you been putting $5,10,20 a week or month for awhile and your $800 invested is now worth $1,000 the Stash Application sends you a push notification to your phone you just reached the $1,000 milestone. Just like a Xbox game achievement unlocked it keeps you wanting to do more.
The Power of Compounding Returns Over Time By Routinely Investing
The power of compounding returns is one of the most powerful aspects of micro-investing. By investing small amounts of money on a regular basis, investors can take advantage of compounding returns. This means that the returns from an investment are reinvested, allowing for exponential growth over time. This is especially true when it comes to long-term investments, such as stocks and mutual funds. For example, if an investor invests $100 per month into a stock portfolio that earns an average return of 8%, after 10 years they would have over $20,000. For those of you not good at mathing that’s $8,000 profit on your investment. This is a testament to the power of compounding returns over time.
Turning Pennies Into Dollars With Real Stash Growth
The power of compounding returns is also evident in the real-world growth of Stash. For example, one user invested just $5 per week into a portfolio of stocks and mutual funds. After just two years, their account had grown to over $1,000. This is a testament to the power of compounding returns and the power of micro-investing. And for the price of what? Skipping Starbucks for just one day a week?
And when I say pennies investing I really do mean pennies! Yes you have a minimum of $5 for whatever investment schedule you set up but with that $5 you can buy .10 of Amazon and .25 of Tesla and put the rest on on a single or ETF or diversify over many different stocks.
Conclusion: The Power of Micro-Investing and Compounding Returns
Micro-investing and compounding returns are powerful tools for investors. By investing small amounts of money on a regular basis, investors can take advantage of compounding returns and exponential growth over time. This is evident in the real-world growth of Stash, which has seen tremendous growth over the years.
And the great thing about making small investments is that if a stock takes a big hit its easy and cheap to average down and will just give you a better average price. You should be picking long term growth stocks and when 1 goes down it’s no big deal cause you got 12 others going up. This article has explored how micro-investing milestones show us the power of compounding returns.
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