SALT LAKE CITY – For most people, 2020 was a year of addressing the devastating impact of the COVID-19 pandemic, which included the worst economic crisis since the Great Depression.
Now, while people are looking forward to a new year, the second round of stimulus checks is hitting Americans’ bank accounts starting this week, leaving many wondering how best to spend their $ 600.
The second stimulus is half of the $ 1,200 that many received from the first coronavirus aid funding earlier this year, and much less than the $ 2,000 proposed by Congressional Democrats and President Donald Trump in recent weeks.
So, how can you do more with less? Invest.
Investing is just one of many ways that individuals can choose to use money, although most financial experts have advised citizens to first pay their bills and debt at high interest rates before any desire to invest is taken seriously.
Ultimately, it is a personal decision on how to spend the money, even if it is just buying something for you. But if you are a novice investor looking to place new funds on the stock market, this can be intimidating.
However, with easy-to-use apps, you can invest right from your phone. You may not become the next Warren Buffett, but you can diversify your finances without having to find a stockbroker or visit Wall Street in New York.
Here are some application-based brokers that can help you get started:
Robinhood
Available on the App Store and Google Play
Founded on the principles shared by its namesake, the app provides easy access for those who want to enter the stock market and “not just the rich”, according to its creators. Robinhood does not charge commercial commission and is free to download. Users can pay a monthly fee for Robinhood Gold, which offers more features.
The application allows users to buy shares directly after linking a bank account. Robinhood allows users to participate in day-trading, but with certain restrictions; it also depends on the type of account the user has before day trading.
The app recently had some problems with the government. This month, Robinhood Financial agreed to pay $ 65 million to settle the charges from the Securities and Exchange Commission, which claimed it did not disclose all details of the high-speed traders and did not give the best prices to customers who trade on the platform, the Associated Press reported.
Nuts
Available on the App Store and Google Play
Unlike Robinhood, where you choose which shares to buy, Acorns automatically rounds off your daily purchases in excess of $ 5 and invests the money. The download is initially free, but you must accept a monthly fee to use it. For example, if you buy lunch for $ 7.85, the app will round up and invest 15 cents. Users select the level of risk they want to take and answer some other questions before the app creates their profile and starts investing.
SoFi
Available on the App Store and Google Play
SoFi is free to download and allows users to start buying shares as soon as they set up their profile and link a bank account. The platform does not charge an annual administration fee and users can start investing immediately.
Public
Available on the App Store and Google Play
Public, formerly called Matador, prides itself on being “the social investment app”, and is free to download. It allows users to buy shares without commission fees. The app not only allows users to buy shares, but also offers exclusive features, such as group chats with other users and tracking other investors to see what stocks they are interested in. The application does not have a day-trading policy, unlike other applications.
Lauren Bennett