Money makes more money, but you don’t have to be a millionaire before you start working on your investment portfolio. We strongly believe that every coin counts, and Liberty recently launched an app that does exactly that!
Stash is an Android app (the iOS app is still in development and you can register to be notified once it’s available for download) that rounds up the amount every time you swipe your debit, credit or cheque card and invest the change on your behalf.
This is how it works.
What is Stash?
Stash is an app that invests your spare change. Every time you swipe your card to pay for a transaction, the app picks it up and rounds up the amount to the nearest R10. The difference is then invested for you.
For example: If you pay for something in the store that cost R98.50, the app will round it up to R100 and will deduct the R1.50 difference and invest it.
How does it work?
When you pay for a transaction your bank will pay the amount to the merchant and the additional change to your Stash account. All your transactions for the day will be added up and paid by your bank as one payment to Stash. It will appear as “Hello Stash” on your bank account.
What does Stash do with your money?
Stash takes all these odd rands and cents and invests it on your behalf in the top 50 companies in South Africa.
Why do we like this money app?
When you are strapped for cash, it is difficult to put away a bulk some every month to invest. There might even be a psychological aspect behind this. When you know you struggle to keep ends meet, it is hard to allocate a fixed amount towards savings or investments, even though we know that we should pay ourselves first. By using an app like Stash, or similar apps, you save without even realising it.
Imagine you are paying with cash. If you pay with a R100 note for something that cost R99.60, what happens to that 40c? Does it get lost in the car or end up somewhere in the couch cushions? Why not invest that 40c instead? It might be small, but in the long run it all adds up.
If you are like me, and you make a point to put that 40c in a piggy bank, then you are still losing out on the growth of that money. The growth of your money in your Stash account will include dividends, interest and capital gains.
We also like the fact that this service is completely free to use, and that it is created by a well-known company like Liberty makes one feel at ease about the safety of using the app.
You can download the app here.