It has been said that wealth is not how much you make, but how much you can save. Now maybe you can do just that with a new app that has come up with a creative way to allow people to slowly save and invest their money.
'Mylo', a personal finance investing app, rounds up users' purchases to the nearest dollar and invests spare change.
In Metro Vancouver, the median individuals after tax income is about $24,129 (based on 2016 census data for people 15 and over). With that income, many people likely think investing is out of reach. With 'Mylo', you can start investing with as little as $1.
CEO & founder, Philip Barrar, says the idea came from his own experience. "I tried to save and do well with my money, and I found putting away a bit of money every single time I purchased worked well for me. With the money I saved, I had my first vacation in 3 years. Now I hope to share this saving technique with others."
It only takes a few minutes to sign up for an account, which links to a credit or debit card. Every time users make a purchase, 'Mylo' rounds up the amount and puts the change into an ETF (exchange-traded fund), which is managed by an investment firm.
For example, 'Mylo' would take 75 cents from a $4.25 latte purchase made on your debit or credit card and put it in the users investment account. Users can withdraw their money at any time, and keep all the returns - a fixed fee of $1 a month is charged to 'Mylo'.
But be careful. While an app such as 'Mylo' makes saving easier, it could also encourage overspending by psychologically rewarding that habit through the automatic saving. It might be a good idea to link 'Mylo' to your debit card, so that you can immediately see the money leave your possession.