The results are in… millennials aren’t saving enough money for retirement. However, thanks to a wave of new Apps in the marketplace, those statistics are beginning to change.
Meet Corey, like many 20 somethings who graduated college during the great recession… Corey struggled to find full time employment with benefits. It seemed every job offer he got was part time or a contractor position which helped him pay the bills, but didn’t offer any assistance in saving/investing for retirement. He realized by his mid twenties that if he was going to have any money invested for retirement he would have to do it on his own. Problem was, he was living paycheck to paycheck and didn’t have free time to do all the “side gigs” his friends were doing to earn extra income. Then he found Stow, a new free App that allows Corey to rent out is extra bedroom in his apartment as a “storage” unit. Corey Listed his extra space on the Stow App and a renter found him within the first few weeks of it being posted. The room that was just sitting there empty is now filled with someone’s boxes and earning Corey and extra $150 each month. Instead of taking that money and spending it on craft beer and small plate lunch specials, Corey realized this was his chance to start saving money.
Corey takes the $150 his extra bedroom earns him on the Stow App each month and invests it into a Roth IRA that is set up in good growth stock mutual funds with an average annual yield of over 7%. While his friends spend their weekends renting themselves out to Uber and Task Ninja, Corey sits back and watches as money gets automatically deposited into his bank account each month and then multiplies it by taking advantage of compound interest. With the help of the Stow App, Corey has found himself excelling at the newest trend for millennials called “micro investing”. It may not seem like a lot today, but by the time Corey retires, his extra $150 per month of passive income will have turned into over $260,000.