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So you think you don't have any extra money to invest. Or that the money you've got left over every month isn't enough to do much to help you get ahead. Or it's just that every time you use your credit or debit card it depresses you, because it symbolizes all your hard-earned capital flying off into the sunset, never to return.
Those are all terrible, self-defeating ways to think. And all of them can be solved with Roundup — a new way to save money in your Wealthsimple accounts.
It's pretty easy. You link any or all of your credit and debit cards (which can be tools of financial ruin!) to your Wealthsimple accounts (which are tools for financial health!), and every time you buy something, we'll round up to the nearest dollar and invest your spare change. It's a way to turn every purchase into an investment — as long as you pay off your cards every month, since high-interest debt is enemy number one of financial independence.
Want to know more? Here's a quick FAQ to help you understand how a little change can mean big returns.
So how exactly does it work?
The first thing you're going to need is a Wealthsimple account.
If you're new to us, you'll need to sign up. First we'll build you a personalized, low-fee, expert-level investing portfolio — or you can put it in a Wealthsimple Save account. As part of the process, you'll be prompted to link the cards you want to use with Roundup. The whole thing will take about five minutes (or maybe 10, depending on how good you are at typing).
If you're already a Wealthsimple client, open your mobile app and click on “Add funds.” There will be an option to turn on Roundup. Then just select the credit and debit cards you want to connect, and the Wealthsimple account you want your roundups to go to.
Bingo, you're done. Every time you spend money with one of your linked debit or credit cards, the amount gets rounded up to the nearest dollar, and once a week that money gets invested.
But what's the point if I'm saving only $.26 when I buy donuts?
Saving money is good. Investing the money you save is better. Think of Roundup as a digital piggy bank that invests. No, you’re probably not going to retire on spare change alone. But 75 cents snowballs at the same rate as $7,500. Say you started investing $0.75 every time you bought coffee — five days a week — when you were 23. By the time you were 65, you'd have $23,712.1 — even after Wealthsimple took out its (skimpy) 0.5% fee. That assumes a relatively conservative (historically) rate of return of 5% — though as we all know, past returns are no guarantee of what'll happen in the future.
Saving a little now is a smarter thing to do than trying to save a lot later — thanks to the power of compound interest.
And maybe even more important than that, it starts us out, teaches us the power of investing regularly, gets us in the habit of saving — and once that number starts to grow, it's a powerful psychological incentive to save more and more and more.
Sounds so easy.
It is. It's the perfect way to get started if you’ve never invested before, or if you think you don’t have enough money to invest meaningfully.
Could I use the money soonish though?
Of course! It’s your money. If you sock your money away in a Smart Savings account, it's a great way to buy holiday presents at the end of the year or, you know, actual donuts. But if you're putting that money in one of our smart investing portfolios, you should plan on keeping it there for a while — a minimum of three to five years is a good rule of thumb. Though, of course, the longer you keep it in, the better your chances of great returns.
Aren't there other apps that do similar things?
Not exactly. Standalone apps, we believe, don't have the same power to help you reach your financial goals. Because just rounding up your purchases isn't going to help make sure you have an emergency fund or save as much as you need for retirement, and it won't put your money to work like the world's smartest investors. Having everything in one place, like you do with your Wealthsimple app, does allow you to do all that.
We know that having everything in one easy-to-use place is a powerful way to get where you want to go. And giving you the best financial tools, all in one place, is our mission.
Now all you need to do is start rounding up.
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