Did you know phone apps can take you from saving money to investing money with ease? Traditional investment companies charged commission fees every time you made a move. Today, thanks to the new generation of financial tech companies, investing is now more accessible than ever. It almost sounds too good to be true, but believe it. I paid off $26,000 in student debt and saved 2 safety nets using 3 phone apps to plan, save, and invest. Avoid the companies with hidden fees and shitty returns and you’ll find yourself building wealth quicker. Most of the apps I’ve selected today are for beginners and will help you:
- Save and budget for free
- Plan and invest for an affordable fee
- And even actively invest for free
Fulfill your money dreams by learning and taking action by providing yourself with the best tools. These apps will save you time, make saving easier, and build wealth quicker. I’m not being paid to mention any of these. It’s my own opinion and I’m genuinely only recommending the top choices for you to check out. You don’t need to be an expert. I’m not a financial advisor, I’m an average person sharing what worked for me without a formal financial education. I personally use 1, 2, and 5, but wanted to provide alternative options for you to choose from.
- Mint: A Budgeting App
- Betterment: A User-Friendly Robo-Advisor App
- Wealthfront: A Longterm Robo-Advisor App
- Ellevest: A Feminist Robo-Advisor App
- Robinhood: A Free Active Investing App
1. Mint
Founded in 2006, Mint is the free money management app that brings together all of your finances. You absolutely need this before any of the other options below. Have you ever played that board game Monopoly? Think of this as your “start” space. It’s the basis on which you’ll build your financial foundation. Mint automatically categorizes your spending into budgets and shows what you’re overspending on, then sends you alerts, so you can adjust your lifestyle. The only thing you need to do is to reduce your credit card swiping.
You truly need this in your life because it’s free, easy to use, and will actually help you budget and save. One downside though is all the credit card ads. (That’s how they keep the app free, so just ignore those.) I personally have used Mint for years and am obsessed. You’re probably thinking, they must be paying me to say this, but nope. I am not sponsored by them, I genuinely started using mint as a broke grad just beginning to pay off student debt. It is one of the reasons I paid off all of my debt so quickly. That’s how helpful this app has been. It’s so great I still use the app today even though I’m debt-free.
2. Betterment
Now that you’ve got your budget in check, it’s time to look into investing. Founded in 2010, Betterment is one of the largest online investment services that claim to help you plan, save, and invest better. They automatically invest for you through their Robo-advising app. It’s a great starting point because it’s user friendly for beginners. You simply put your age, salary, and money goals and it will provide different recommendations for your savings, investments, and even retirement. You won’t need to stock pick, they’ll do all the heavy lifting for you.
Keep in mind though that this one isn’t free, they charge an annual fee of 0.25%. Betterment is worth checking out if you’re a beginner and need guidance with investing. If you’re unsure, you can start with a free trial up through my referral link. You’ll get 3 months free to try it out and see if you like it. I chose them because there’s no account minimum, so you can even start with $20 or $100. That’s how I started and 5 years later I’m still using it. Betterment is the best option if you are just starting because the no minumum and they offer more guidance.
3. Wealthfront
Investing is a long-term commitment, so you’ve got to choose the right option and service for you. Founded in 2008, Wealthfront claims to level the playing field by using technology to help you make more money on all your money and take the work out of banking, investing, borrowing, and planning. Wealthfront is a similar option to Betterment but has a few differences.
Wealthfront stands out for college savings accounts, it’s digital financial planning software, and lending. However, they require a $500 minimum so you’ll need $500 to start. That’s one of the reasons I went with Betterment a long time ago. Don’t let that deter you though, the minimum doesn’t matter in the long run if you love their service. Wealthfront is unique in that they don’t increase their fees as your assets under their management grow and their service actually improves with additional layers of diversification. Also, A bonus to try out Wealthfront right now is you can get one year managed for free through this link. Wealthfront is the best option if you’re thinking longterm because their fees are lower past $100k in assets.
4. Ellevest
This next pick is for the feminist investor. Ellevest‘s goal is to get more money in the hands of women. Founded in 2014, Ellevest helps with financial planning, career coaching, investing, & banking that gives you cash back. This is a great option if you want to support a woman founded company that primarily focuses on women. Ellevest argues that because of circumstances like gender pay gaps and longer lifespans, women need an entirely different approach to investing.
Ellevest has the only investment algorithm that factors in important realities of women’s lives, such as pay gaps, career breaks, and longer lifespans. There is no minimum requirement to start and their fees are different because they charge a monthly subscription plan starting from $1/month to $9/month. That may sound affordable, but the $1 tier doesn’t include retirement. Honestly, I would choose Betterment or Wealthfront over Ellevest in terms of just fees and options, but I thought Ellevest was important to mention because they are the first financial company catering to women. Ellevest is the best option if you value investing in women-owned businesses and want educational content, workshops, and coaching.
5. Robinhood
This is the only app on this list I advise you to proceed with caution. This is only recommended for people who want to actively invest. If you don’t enjoy learning about investing daily, skip this app. If you’re curious and would like to learn more, read on.
The Backstory
Founded in 2013, Robinhood is a free-trading app that lets investors trade stocks, options, exchange-traded funds, and cryptocurrency without paying commissions. There’s no minimum requirement and you even get free stock for referrals. Its mission is to “provide everyone with access to the financial markets, not just the wealthy.” As you may have guessed, the company’s name comes from the famous tale of Robin Hood known for stealing from the rich and giving to the poor.
The Good
This is a great beginner investing platform because you can invest for free and the interface is simple and user friendly. If you are looking for all the bells and whistles, this is not for you. If you’re looking for low cost and easy to use, then this is for you.
You might be wondering, how can this possibly be free? What’s the catch? I thought the same thing, but I’ve been using it for 4 years and still have not paid any fees. They make money through their premium service, so you can pay $5/month for more options on Robinhood Gold, but you’re not obligated.
The Bad
You may find mixed reviews online about Robinhood. My guess is that people took on riskier choices than they should. Another reason is people with more investing experience want more options and features. Personally, I enjoy their simple interface and have had a great experience with them overall.
Should you try it?
Robinhood is an awesome idea, platform, and mission. They changed the investing industry and truly made it more accessible. Traditional competitors like TDAmeritrade and Fidelity only switched to $0 commission trades and fees because of Robinhood.
Start off slow and don’t make risky moves that you can’t afford to lose. Originally, I tried it out with $100, worked up to $1000, and slowly went up from there while actively reading about investing. Want to try it out? Get a free stock by using my referral link here. When you use the platform responsibily, you will find it quite useful. If you don’t want to stress out, the standard advice is to only invest in index funds.
Conclusion
- You don’t need all five
- You should at least get 2 (budgeting app & investment app)
- I’d recommend starting with number 1 (Mint)
- Then, choose an option between 2-4 (either Betterment, Wealthfront, or Ellevest)
- Last, number 5 (Robinhood) is optional if you want to actively invest
- In my opinion, don’t use Robinhood until you’ve learned more about investing and the risks involved
- Did I miss any awesome investment apps you think should be mentioned? Email us at clevagals@gmail.com
- Not quite ready to invest? Read more beginner tips on how to save money here
- Why did I leave out saving apps like Acorns, Qapital, Stash, etc? Either their fees were too high or their returns for your investment weren’t as good compared to other services.
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Disclaimer
I’m not a certified financial planner/advisor nor a certified financial analyst nor an economist nor a CPA nor an accountant nor a lawyer. I’m not a finance professional through formal education. I’m just an average woman who couldn’t find relatable financial help while navigating my student debt journey. The contents on this site are for informational and entertainment purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
