This is an interesting tool that will basically allow you to start investing with as little as $5. But can you really make money with the Stash app?
We downloaded it for ourselves, and decided to give it a once-over in an attempt to answer this question.
Here’s what we learned.
Getting Started: What Is Stash?
Stash is basically an investing app. These are becoming more and more common, and for good reason. Gone are the days where you need an expensive and cumbersome stock-broker to handle transactions that should be easy… and Stash is just one example of several new apps that have been designed specifically for this purpose.
The Google Play Store says this about the app in its description…
Learn how to invest with Stash and start building your investment portfolio today!
The app has 4 stars on Google Play, which is pretty impressive. It has been reviewed by just over 3,000 users, and has been downloaded over 500,000 times!
But what is the app itself like?
Here’s a look at the inside.
Getting Started With Stash
When we first opened the app, we were greeted with a screenshot of the inside. Here’s a screenshot of the screenshot (yes that was a cheesy thing to say… no I do not regret it).
We scrolled though a few other screens that gave us a run-down of the features, before we came to this. This is an example of what the app costs to use.
So, as you can see, there are some fees that you will be expected to pay to use Stash.
But they are really small. You only need to pay $1 a month to use the App if you have less than $5,000 in holdings… and after that, you just get ping’d with a small 0.25% yearly fee.
I can tell you right now that this is a much better deal than you will find with any local stock broker. Not only can you start investing on Stash with a fraction of the amount of capital, but the fees are also tremendously reasonable.
So far, we were impressed. I feel like people who are interested in investing will probably not be discouraged by these fees, as they really aren’t that bad.
I know that I wasn’t dismayed by them in the least. Plus, you get three months free—which is awesome!
Making An Account On Stash
On the next screen, I was prompted to ‘start investing,’ which basically meant that it was time to make an account.
Here’s a screenshot of the screen that gave us a rundown of the process.
Making an account on Stash is a bit more in-depth than you would expect from a typical app… but there are a few different (and very legitimate) reasons for this. They say on the basic information screen that all of your information needs to match your government issued ID, because you actually need to verify your identity to use Stash.
But this is reasonable. It is, after all, an investment app. So plan on using your full, real name. No nicknames or anything like that.
After you fill in your information, you need to link your bank account and select what investments you want to make.
You can actually view a pretty good promotional video that gives you a basic overview of how the app works here
As we took a look at the app and played around with it, it became apparent that this wasn’t a robo-advisor. When it comes to apps or programs that help you with investing, a lot of people are afraid of their money being shifted around without them realizing what is going on.
But with Stash, you won’t have to worry about this. It uses exchange-traded funds that are branded with catchy, easy-to-understand names to help guide investors toward the type of investments that they might be interested in.
It’s certainly not an auto-investment tool. Rather, it is a tool that’s perfect for helping new investors through the process of choosing which portfolios they wish to place their money in.
The Stash Investment Portfolios
One thing that we really liked about Stash was the investment portfolio setup. Rather than giving the investor the huge, complicated task of choosing individual companies, funds are organized into categories that will help investors to personalize their investments without being forced to take part in the time-consuming, bogged-down process of selecting specific organizations or funds to invest in.
Here are just two examples of portfolios that you can choose from on Stash.
But Can You Really Earn Money On Stash?
The real question here, obviously, is whether or not you can actually make money on Stash.
And the answer seems to be a doubtless yes.
This tool, which you can access within the app, does a pretty good job of showing you how you can predict trends and earnings through your investments.
Investing tends to be a pretty scientific process, to be honest. You’ll find that sometimes, your numbers may tend to dip—but for the most part, you get to choose your risk level and stick with that. If you’re not interested in volatile investments, then you can just go the low-risk route and bypass that problem.
Stash makes this really easy. So while investing money isn't “making” money, the GROWTH you see from investments is definitely a profit. Heck, the government taxes it right?
It is also very apparent that users on Stash are earning returns on their investments. Here is an example of a review from the Google Play store where the users reports earning more back from the money invested than they would from a savings account… and there are really all kinds of reviews like this one to be found if you browse through them.
Of course, it is important to understand that Stash is not a get-rich-quick idea. It’s an investment app that gives you access to affordable investing options from the comfort and ease of your smart phone or tablet.
If you aren’t going to be putting some money aside and investing it with the app, then you aren’t going to make anything. Also, this app isn’t designed to make you a ton of money right away. It was designed to help you build your account slowly and surely—which is what investing is really all about.
What are the downsides to Stash?
While I see the Stash fees as very reasonable, especially for what you get—I will say that getting 0.25% taken out in the long term on much larger accounts could add up to a lot. Let’s say that you do really well and end up with $10,000 dollars at some point. The fees on this would add up to about $25 a year.
This doesn't seem like much of a downside to me, really.
I also feel that Stash could, however, begin to get clunky if you started to really learn a lot about investing. If, for example, you wanted more control over specific investments, then you might outgrow this app eventually—but for a beginner or someone who doesn’t want to bother with tedious investment details right away, it’s awesome.
The other downside is that you actually need money to invest. Many people are looking for ways to actually “create” money, as in…an online job. For actually making money, I recommend Swagbucks. It's a consistent money-maker for doing small online tasks.
Beginner Investors VS Pro Investors Using Stash
Stash is an awesome app. It works well, the interface is intuitive, it makes investing easy (I cannot stress this enough—it really is a no-brainer), and it brings the business of stock brokers and Wall Street right to the tips of your fingers—which is very cool.
Getting set up and verifying your identity takes a bit of time and effort—but once you get it all set up, you’re really good to go and don’t have much to worry about.
If you are a pro investor with years of experience and know-how, then you might find this app clunky and overly simplistic. You might also grow tired of not having more options.
But if you’re a typical person with a cell phone who would like to start investing and saving a little bit for the future, and don’t quite know how to start and don’t have a ton of capital to start with, then this app was literally designed for you.
There really isn’t much more to say about it. You can get 3 months for free if you sign up for it—but you’ll still have to risk at least a little bit of money to get started with investments. You can do it for as little as $5 though—which is pretty amazing!
Our Final Thoughts on Stash
Should you download it onto your phone?
Honestly, when you calculate the time spent trying to make money with apps, it rarely works out to be more than a few dollars per hour. Most of the time, you'll only make a few dollars per month. Personally, I think my time is worth more than that!
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