Acorns "Investing" is a Scam.

something that drives me nuts and it is

acorns I hate to say it they have a two

quick notes I'm gonna be in the air

flying today so you can follow me on

Instagram to see what I'm up to I'll be

at a special place and you're gonna see

a lot of cool stuff so follow me on

Instagram and we did extend the flash

sale to the end of the week for those of

you who emailed us and for anyone else

69 off largest percentage basis sale for

the programs I'm building above link

down below very great rating online

people love them okay it is the

stupidest thing you could use if you use

acorns and I've said this before this is

my opinion I'm not trying to bash them

but I think they are scamming people now

again I don't think they actually or

like financially just gaming people I

just think psychologically they are

ruining you because think about this

acorns is a company that basically says

hey well when you swipe your credit card

we'll Round Up to whatever increment you

want and will invest that automatically

for you fine sounds great right but that

means every time you go buy something

rather than feeling the pain of paying

like if you want the ultimate pain of

pain

this is pain of pain when you take out

cash like the stack of I don't know one

dollar oh there's some 20s in here oh

there's some hundreds in here too anyway

when you take a stack of cash and you go

out and you say all right I'm gonna go

buy something so

and you take that shiny crisp two dollar

bill and you're like here you go this is

the most painful way to pay for

something is you hand Cold Hard Cash to

someone it's like damn I gotta get 100

bucks out of here man I really want to

keep the hundred right that is painful

it is a very painful way to pay so then

we invented credit cards which

disconnected you from money right and it

made it less painful now you still have

to pay off your credit card but there's

a reason Starbucks likes the Starbucks

card because you have the pain of paying

once you put 50 bucks on your card and

then every time you go there's no pain

of paying anymore because you're just

working off what you already have on

your Starbucks gift card or whatever

right it's kind of like when you prepay

uh uh for Dave and Buster's points or

you get chips at a casino you've already

just detached yourself from your money

so you have like three levels of pain of

paying in my opinion you have the cash

paying of paying which is very painful

then you have the credit card level of

pain of paying Which is less painful

then you have the gift card level of

pain of paying or the casino chips or

the Dave and Buster's tickets very very

low pain of paying now you want to get

even more ridiculous you put your Dave

and Buster's card on your Apple pay on

your phone or your watch now your Apple

paying away a very low level of pain of

pain right you want to know the ultimate

most ridiculous psychologic way to ruin

yourself and your spending

it's to psychologically tell yourself

that every time you spend money through

like Apple pay with a low pain of paying

method which by the way cash back

rewards cards those enhance your pay

like those enhance what I'm talking

about they make pain of paying less oh I

just spent a thousand dollars on an

airplane ticket good thing I get three

and a half percent cash back like that's

idiotic right but it reduces the pain of

pain and makes you happy to spend money

because you feel like you're getting

more it's a ridiculous total ripoff

right

but this is where acorns comes in as the

stupidest and dumbest thing that you

could do if you're trying to moderate

your spending

you actually associate spending money

via a low pane of paying method credit

card Apple pay whatever and you

associate spending with investing

that I guarantee you is going to be the

downfall of most Millennials and gen Z's

who are falling victim to the bull crap

of acorns now that's not going to be

very popular because people say man

they're doing a good thing they're

getting people who don't invest into

investing

no you're psychologically robbing people

making them associate investing and the

joy of investing with spending oh want

to invest more go spend more it is

stupid and if you have acorns or an

acorns card I highly recommend you

cancel it get rid of it in fact if you

if you want to have the like if you have

trouble sticking to a budget go to cash

serious you go to cash you'll spend

probably 20 I'm pulling this number out

of thin air okay you'll probably spend

20 to 30 percent less money if you spend

cash on everything because it's not

harder you have to go to the bank and

refill it you know you gotta account it

you gotta make change you gotta hold it

and it's painful you don't want to give

up the cold hard green cash

but hey you really want to buy stuff if

you get investment stocks with it it's

so stupid it's so stupid it is the

dumbest thing you could psychologically

do and sorry I have to rant about it I'm

just I just feel so terrible for people

who associate spending money on crap

with investing it's totally idiotic

that's my take that's my take I'm sorry

I I I I I know I I know it's a lot but

uh yeah crispy pyro or whatever over

here says that's my cocaine money

that's not my cocaine I don't know

anything about cocaine uh I love me some

air miles I always use my card haven't

paid for a flight in so many years I

can't remember now don't get me wrong

if you are going to buy stuff anyway

obviously you should get cash back

Rewards or air miles or stuff like that

right obviously and then it is prudent

for you to evaluate how do you get the

best rewards for example your daily cash

back card might be a two percent a city

double cash card might be a two percent

Apple cashback card maybe even three

percent if you go buy at Apple just as

long as it's not inducing you to buy

more stuff at Apple right like if you're

gonna buy the new cable from for your

iPhone for 15 bucks on Amazon but then

you're like but I could get three

percent off at Apple with the Apple card

and then you pay four times as much

money for the stupid cable well you know

that you're net net losing right but if

you're going to be buying the flight

anyway of course uh air miles make a lot

of sense you know I mean I I I I

consider myself pretty well versed in

doing that as well uh in fact I have a

bonfire card although that one I don't

like as much you have to make sure you

use that at a restaurant every single

month or else it's not worth it uh that

almost pays for itself I've got the

Platinum JPMorgan Reserve I got the

Palladium card from JPMorgan which is

now the JPMorgan card the nickname the

10 million dollar credit card we've got

the uh United Delta American Airlines

all of them and one of them by the way I

don't know where it is but what one of

the airlines lets you have

credit cards authorized user credit

cards for your children so I got one for

Jack who's seven years old and I don't

actually give it to him but I use it

because anyone who holds a free

authorized user card can actually bring

people into the lounge for free and

their credit card I think it's American

pretty sure it's American but it might

be Delta anyway one of those uh one of

them gives you the free card and uh the

crazy thing about it is they usually

charge you for people above two that you

like more than two people that come in

so in other words you go into a lounge

two people can come in for free after

that it's 30 per person even if they're

family unless someone else with an

author a card like an authorized user uh

also can bring in two people so now I

have one for Lauren myself and Jack so

we could bring in ourselves plus six

people so that's like nine people it's

like I'm a big fan of little hacks like

that but you actually have to use it and

make sure the annual fees are worth it

right uh so that's that is different and

I don't want to associate credit card

rewards with bagging on acorns uh credit

cards do Inc or they lower the pain of

pain right they increase the

psychological desire and propensity to

spend which is bad that's why if you

have a spending problem you go to cash

acorns is just the biggest mind F ever I

mean it is the psychologically worst

thing that you could do in my opinion my

take

that's my take

okay now here's here's somebody says

okay so I'm spending five dollars why

not save a dollar at the same time so

this is a it's a fair calendar argument

like heaven if I'm going to spend the

five dollars then anyway why not save a

dollar at the same time

fair fair question right

and it's totally reasonable because if

you're going to spend the money anyway

sure

but the danger is and you won't see it

you just won't know it because it's a

psychological phenomenon that happens

deep in your mindset you'll be thinking

oh like what you just wrote literally

reiterates that keep this in mind okay

this is why how psychologically deep it

is you go to the store and you're like

well I'm gonna buy this five dollar

latte anyway I may as well save a dollar

you get your latte you're standing

you're drinking your latte

I'm so good with money I'm investing a

dollar into Starbucks because I bought

this latte

even if that just makes you go to

Starbucks

one extra time which it will you won't

realize it but it will you'll go one

extra time you burn five trips of

savings

so psychologically the argument I'm

making is is it's not apparent initially

because you might be thinking to

yourself oh what happened I'm matters

for I'll save anyway I gotta get that

latte anyway you're kidding yourself you

will spend more money with acorns it's

brilliant for the consumer businesses

though like if I was a business I would

sell gift cards all day long I would

have my own branded credit card if I was

a store because I'm gonna make lots of

money doing that and give people five

percent off like what Target does I

would do whatever I could to partner

with companies like acorns I would even

go as far as saying like I'll if if you

invest the dollar in my stock by by

buying you know at my company through

acorns or whatever every time you swipe

the card we'll add another 50 cents on

top like we'll we'll give you extra

rewards if you use it I would absolutely

do that because I am 100 convinced that

as a seller I would make more sales

because people are stupidly being

tricked into saving and investing by

spending that's dumb it's really really

dumb that's not that's it that's it I'm

sorry I'm sorry I had to rant about it I

had to do it I had to do it I thought it

was very important because it's a

warning to the world

acorns sucks not Financial advice

[Laughter]

um anyway all right

sorry it gets so like worked up over

these things could you actually I mean I

I almost think you could call that

Financial advice the problem is so the

issue so I'm a licensed financial

advisor right the problem is with

um

you can't you can't have your message

ever suggest that you're giving

personalized Financial advice right so

if I tell you you're an idiot for

getting mortgage or for being worried

about mortgage insurance or using acorns

that might sound like personal financial

advice I think that is good Financial

advice so I have to make sure I'm clear

in saying that anything that I'm giving

is just sort of broad a broad suggestion

not personalized Financial advice

otherwise the SEC is going to come from

my butt and I respect the SEC I respect

the three-letter organizations and

agencies you have to follow the rules so

I just want to be very clear

yeah anyway some people think that when

you say oh this is a personalized

Financial advice that somehow that like

lowers the standard of your message but

they also don't realize what

personalized Financial advice is right

like personal financial advice would be

you coming to me let's say and and then

to me as a licensed financial advisor me

looking at okay how much money do you

have in bonds what do you have in

savings what do you have in real estate

what are your goals when you want to

retire and actually like really come

coming up with a real plan for you

that's very different than just you know

talking to 7 000 people on YouTube right