Round-ups and Investing Apps

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If you want to keep on earn more and make more money you're in the right place. I spent over 10 years learning from the most brilliant minds in money, wealth, and investing to take myself from 20 K in debt to a seven figure investment portfolio. Join him as I share the secrets towards more throws, money investing and ultimately freedom. My name is Simone, miss Huggins, and welcome to ms. Wealthy's kiss my money podcast.

What's up guys. Did you enjoy last week's episode with Leanne? I recorded that about a month ago and maybe even two months ago. And, um, I forgot that I had it and when I actually was recording it, I still had a cold at the time. So listening to it back was a little bit nasally, but I love chatting to her. She has the most incredible outlook on life after going through honestly, such intense and insane things, um, throughout her life experiencing such incredible loss and traumatic experiences from stillbirth to her husband, getting cancer to her, uh, cat, uh, needing a $7 billion vet bill to, uh, her father dying and her ex mother, her stepmother basically burning through all their couch to her home. Like just honestly. So it helps to give you a little bit of perspective, particularly if you are feeling like you're struggling a little bit of a place now, but also she just has this incredible energy about her for, you know, around forgiveness and seeing the possibility and the reasons why we go through kind of struggle.

Anyway, if you haven't listened to that episode yet I do encourage you to go back and listen to it. It's, it's a really, really beautiful app. And, um, it definitely is kind of really calming. I find anyway, that's not what I'm talking about today. This app today is I want to touch on a couple of things because this has come up in honestly so many Facebook groups and I'm seeing so many people post about it. And, uh, I wanted to like give you my 2 cents, give you another perspective, especially if it's something that you do or thinking about. And that is all around the tiny sense, the tiny, tiny, tiny sense, um, that you stress over or maybe not you, but you've thought about before. I see a lot of people stressing over the tiny things. Things like, um, should I order that coffee? How many coffees do I have, um, a week, um, I'm going to do Roundup and that's how, that's my method and strategy for saving.

Um, I'm going to put in like $5 into my acorns account, uh, or res whatever account you want to call it. Uh, and that's going to be my method for investing. And that's why I want to talk about these kinds of things today. So first up the thing about coffee, I've talked about this before in another episode, way back, but I want to cover it again because here is the question. I get a lot on coffee and whether you should be not spending that much on coffee and how much do you save on coffee and all that sort of stuff. Honestly, if coffee is the thing that brings you the most joy and that $4 that you spend each day is, is your, like your, you know, one of your most favorite parts of the day, then why would I give that up? I am sorry, sick and tired of this being something that people talk about as being like the thing that stops you from buying your house, because you buy too many coffees.

I've said this before. I'm going to say it again, super clear, just because you spend less money doesn't mean you save money. So just because you don't buy that coffee today or tomorrow, or you buy one less, that doesn't mean you actually saving money because the act and practice of saving money means to put that money in a different account, into a savings account. And to put that money into an investment account because savings doesn't really do anything unless it's put, put to work. It doesn't do anything. If it's just transferred back into your spending account to spend on something else, honestly, spending less money does not equal savings. Guys. I really want you to understand that concept so clearly because it's, it's, it's a term that's thrown around or much particularly with like, and we can rationalize too until our eyeballs bleed around saving money in sales, for example, going on a shopping trip and being like, Oh my God, it was on sale.

I saved so much money. No, you didn't. You just spent less. And so unless that money is actually being put to work, meaning invested, you didn't say anything, you just spent a little bit less. And what happens is because we're human beings and money is there to be enjoyed. Um, that money is often just spent on something else, right? So the act of spending less is completely different to putting your money to work. And I want you to understand that as a concept so that you can actually put an action. Now, I'm going to talk about that at the end of this app, putting in an actual action plan to ensure that you actually doing that, that you're actually putting money into a savings account to invest. I know I sound a little bit bossy today. It's the end of the day. I'm recording this at the end of the day.

And I have been working my little butt off recently on a lot of stuff that's coming up, which I'm going to announce, uh, in the next episode. Uh, so I, I just wanted to get like to the point, like straight to the point, and I hope that it like it resonates and you understand it from at least from seeing it from a different point of view, a different perspective. The other point I wanted to talk about is this thing around Roundup. And it's something that a lot of the banks are now implementing and introducing, and it's a cool, and it's like this cute little, you know, fun thing. And, you know, you can see your, whatever your Roundup account or whatever it is, or icons are raised, you know, rounding up your money and you might be like, Oh my God, I got to $30.

Oh my God, I got to $300. That's all cool. Like, great, that's fine. My problem with this is that if that is your only strategy to save, if that is your only strategy to invest, if that's your only strategy to put away money, and that's your method to like, I dunno, save for a holiday or like put in $10 here and there to an investing account. That's not a strategy. It's not a plan. And he is why, because your savings on your Roundup is solely dependent on you spending money. So when you're rounding up, you know, those cents to the nearest dollar and all that sort of stuff. Yeah, cool. It adds up. I get that as a concept. I totally understand that, but it's purely based on how much you spent, how often you spend rather. And so the problem with that, and please don't underestimate the impact that that has on your subconscious.

You are subconsciously telling yourself that the more often you spend as a habit, it means that you can round up and it's almost like a reward. You're rewarding yourself every time you spend. And that's not habit that we want a form. Like we actually want to set up a plan for you, a system in place. That means that you save and invest money. That's solely independent of how much you spend and how often you spend spending is totally cool. That's fine. Go for it. But it shouldn't be therefore rewarded in this little like fun game of, you know, adding up little bits of money every time it's not a saving strategy, it's not an investing strategy and long term. It is pretty compared to what you can actually do. You have so much potential guys like, so there was so much possibility and potential. Like there's actually more possibility and opportunity and, um, you know, options out there for all of us to make more money, grow more money, increase your income, increase your impact, increase your profitability and increase your wealth.

That there's actually not enough time to access all of them. Like there are so many options and ideas and possibilities out there to increase your wealth. There is not enough time. And when it comes to rounding up the cents on your dollar it's it's, child's play, Oh my God, I put it out there. I know you might be all like, hold on. I just took offense to that. Honestly, compared to what I know you can do, compared to what I know you can achieve compared to what I genuinely know, you can save and invest and create and build in terms of your net worth in terms of your financial freedom account, in terms of like retiring early. I know what is actually possible for you and rounding up is not going to get you there. Particularly at that rounding up is literally just to be spent on, I don't know, like your next weekend away.

Cause it's like a couple of hundred dollars, like get serious about actually putting in place a proper money system. I've spoken about that before. And that's something that comes for all the members and investing bootcamp, but setting up a proper money system so that you have the proper tools in place, regardless of what you earn. And regardless of, you know, it's something that grows with you and it's completely independent of you spending. It allows you to spend and it allows you to save and it allows you to grow your wealth. But I am so against rounding up because it's focusing on the tiniest, tiniest elements of what is actually possible for you. And I want you to achieve the greatest. So if you're going to put your energy and time and attention into building wealth or saving, or building that up to invest or putting aside money, I want that energy and time and attention to be spent on something that is like properly leveraged.

That is actually going to give you the biggest impact that is actually going to make the biggest difference in your financial life. And rounding up is not one of them like put your attention time and focus and energy into the thing that's going to get you there, the fastest, right? You want the fastest route to success. You want the fastest route to financial freedom, the fastest route to financial independence, the fastest route 200 K or your next hundred K or your next or first million and rounding up cents on the Dola is not the strategy that's going to get you there. All right. The third thing I want to talk about, and this kind of also plays into the same apps. I've mentioned a couple of times, acorns and rays, which are the biggest ones, which is, um, you know, like micro investing, essentially. Robo-advisor micro investing and here's the thing, the fees on these accounts and these platforms, um, or these services I currently like there were, okay, there are relatively low.

There's still double what you pay in. Like if you would actually do it yourself, not through a RoboAdvisor like razor acorns. So you're still paying way more on the lower end. Like when we're talking one or two or $3,000, when you're in just investing that much, those fees, aren't really going to impact you because you're a counselor, tiny, like your account is just growing at such minuscule amounts. And if you're not actually putting in a proper, um, plan to continuously invest new money and grow that and, you know, utilize compound interest then, and if you're just literally going to have your money sit there, um, at those same amounts and grow cents on the dollars here and there, then it's not going to grow that fast. So at those amounts, it's relatively minuscule. You know, you're paying, I think the fees are under five K or under 10 K from memory, um, that you pay, what is it like $5 a month or something or something like that.

I can't remember. But so you were paying like whatever, $50 a year. So it's tiny compared to, um, you know, the experience you that you get or the feeling you get of kind of starting to understand risk or starting to understand that you're got your foot in the door. If it gets you over that hump of actually taking action and getting a foot into the door and investing than cool, like a few hundred dollars is really nothing. If it's actually going to put you on that path to actually get serious. That's cool. That's all fine. But when you do actually get serious, when you do actually, when you are so ready to go, okay, I am all in on this. Like I am serious about committing to my financial independence. I'm serious about committing to actually building wealth and creating financial freedom. Then those apps, uh, going to eat away at that possibility when you actually get serious about it.

Meaning when you actually get serious about, Hey, I'm putting away 50 or a hundred dollars a week towards this because I know how much that's going to grow my wealth over time. Because if I consistently do that and you use compound interest, you're like, you're hitting the hundred K the 200 K the 300 K in the next, like 10 to 15 years kind of thing. So like when you actually get serious and when you're hitting those numbers, those apps like rays and acorns, uh, actually eating into your return. Cause you're paying double the phase. I looked into these, um, apps, or like not that long ago to kind of like properly, really understand how much they're actually charging and what they're actually doing. And it was really interesting because like I said, but the lower end, it's like, eh, it's not that it's not that bad, but when you're ready to get serious, it's really like not the best option if you're actually serious about genuinely growing your wealth, which is why I have invested in Barry, Kevin, why I teach women to do it themselves.

Because the difference in the fees that you pay actually mean literally like tens to hundreds of thousand dollars over the course of your investing life. Like literally the other problem I have with raising acorns is that their fees are not clear and simple. They will say on their website, when you click on the fees, they're a tab. It actually says phase clear and simple. It's not, it's not at all, all it talks about their fees being a percentage, but it doesn't actually tell you that it's on top of additional fees that you pay for the underlying issuer of what you buy. Um, so, and you know, you kind of only really dive into that when you read the full PDs guide, um, which most people just don't read, um, except to me, because I'm a total nerd and I like to investigate these things and actually get the download to properly understand because if it genuinely is something that is going to help you get to financial freedom pasta, then I want that to be a possibility for you.

I want you to have that, but it's not the best option for you in terms of what you can actually put back in your pocket. And so when you're putting in, you know, tens of thousands of dollars to someone else, meaning these, these apps, or you could actually put that in your pocket and grow that and make money on that, then that, that builds over time to be quite a bit of, of, you know, income that you end up keeping. So that's kind of why I'm big on it being, you know, something that if you just want to play around with and pay, you know, whatever it is that you end up paying to feel like you're getting in the door. Cool. But like I said, when you're ready to get serious, when you're ready to be like, no, this is something I'm committed to then doing it yourself rather than using an app.

Like this is actually the way forward. The other reason is because they kind of have like, it's about four different options. So it's like, you know, low, whatever balanced, and then it's gross and then it's like high growth, but it's kind of, you can't actually, uh, invest exactly how you want it to be because they have just these four or even like three set options and it caters to the large majority. Right? So it averages everyone out. And so even if you're someone that is super young and you're have a very high risk tolerance and you're super aggressive with what you're prepared to do, because you know, investing is a longterm game, then that's actually not an option because they are averaging out. Um, a lot of their like investing plans. I don't know if I've just gone a little bit technical babble on you.

Um, and I feel like, hold on, I'm not even ready for that yet then cool. You know, it's something that you can use and explore. And, um, you know, if it means that it gets your foot in the door and gets you over the hump of like actually taking action. Great. Um, but when you're ready to get serious, then you know where to come. So I know I've just like regurgitated a whole lot of info, but I hope that this has actually given you something to think about. It's given you another perspective on what is possible when you start thinking in a different way. Um, I see a lot of people I've seen it in so many Facebook groups on, um, you know, getting others to sign up to these like apps because then you get $5 and then someone else gets $5. You guys come on.

Like, I wouldn't be focusing on the 500, the 5,000, like on bigger money. Like when you're spending like 20 minutes, half an hour, an hour, two hours trying to get one person to sign up for $5. You need a question, the value of your time, you need a question like literally literally how serious you are about your valued, that you're actually putting out to the world and where that could actually be focused to make bigger money, bigger impact. So that's why I wanted to talk about this today, because I want to give you the perspective of the fact that you can be playing a bigger game. Like there is so much more possibility out there for you. And if you're currently like, hold on, I only own this much, or hold on, I'm broke or hold on, I'm living paycheck to paycheck or Holden. I can't afford X, Y, Z.

You have to understand that that is a mindset like genuinely, you guys, it's a mind set because what you can actually achieve is possible for everyone, you are no more disadvantaged than anyone else. And does, it's not about your circumstances and it's not about what you grew up with, and it's not about like the job or your boss or your friends or what you were, or weren't taught. It's genuinely comes down to a mindset and only you can control that. And the moment, the moment we, we take responsibility and own what we believe and own what, you know, our thoughts and our thought patterns and understand that that's not the only way of thinking about something that is the moment that we understand that there is more out there that there's another way that there is possibility beyond what we don't even realize, because you are only working within the construct of what, you know, you're only working within the construct of what you've seen or thought of before or believe.

And so how could you possibly see another possibility because you don't know what that is yet. You don't know what you don't know. And so our ego keeps us small and protects us from really understanding that there is so much more out there. Like all the excuses are just excuses or your reasons are just reasons to keep you comfortable and stuck where you are when your mindset shifts, and you start shifting that to a bigger mindset for more income, more income, impact, more profit, more freedom. You start seeing the possibility of how you can actually make more money, how you can keep more money, how you can earn more money and how it's possible to grow beyond the construct that you're currently living in. All right. I know I just went off on a tangent about money mindset, but it's something that is so close to my heart and it pains me so much to see so many women stuck in a mentality of that.

Their reality is the only way in a mentality of thinking that what they currently live out day to day is reality. When there are so many other realities going on, like there were so many other possibilities that are out there that everyone else is living that is possible for you and me too. All right, I'm going to leave it there for today and try and keep this short. But next week I'm going to announce a couple of cool, really awesome things. Um, so stay tuned for that. And I hope that this has given you a different mindset shift, and I invite you to think about, or even question the current money mindset shifts, or beliefs or thoughts or patterns that you currently have that could use an upgrade in your life. All right, bye. See you next week.