Cash Out with Cash App?
Cash App – C+
Cash App is an easy and fast-moving way to invest your money through their online platform. However, it is entirely too easy to pull money from your accounts without giving your investments time to grow over time. Due to this fact, you’re “too close” to your investment money and the draw to withdraw funds is too tempting. Therefore we give Cash App a C+.
What is Cash App?
Cash App is exactly what you think it is, an app that allows you to invest your cash. Once you download their app, you’re ready to set up your bank account information and begin depositing funds to invest right away. However, Cash App is not like your usual brokerage account. Within their platform, you are given the ability to pay bills, send money, or withdraw funds as you would with your bank account. This allows instant access to your investment funds.
While this might sound like an exciting and versatile way to grow your wealth, it might actually be detrimental. Why? Investments and the wealth they bring is grown over the long haul. Investing is not a flash-in-the-pan endeavor to make a quick buck, rather it’s a seed that must be nurtured to grow into a strong money tree.
What Does Cash App Offer?
Cash App offers various stocks, such as Apple and Microsoft, along with investment opportunities with cryptocurrency such as Bitcoin. Fractional stocks and crypto can be purchased directly within the app. Because they use their investment accounts like one would their own bank account, they also give you the opportunity to send paychecks and direct deposits into the app as well. You’ll also be able to design your own Cash App debit card, and if you’d like a physical card, you can order one for $5.
In essence, Cash App seeks to combine a brokerage account with a bank account to make a hybrid of sorts, where one can both invest and spend their investments easily and efficiently. They also offer a service called “Cash App Taxes” where filing taxes is free for investors on their platform.
Due to the fact they are a brokerage account that acts like a bank account, you’ll be able to send money anywhere instantly, which allows you to make payments to individuals or pay your bills. This privilege also goes both ways and you can accept payments from others instantaneously as well.
Investing is a Marathon, Not a Sprint
Overall, Cash App might be a perfect fit for someone who wants to make fast cash. When it comes to investing, it is better to do something than nothing, thus investing with Cash App is better than no investment at all. However, if you plan on opening a Cash App account, you’ll need to be disciplined not to touch it to build your wealth. Due to being entirely too accessible to your investments, Financial Joy School gives Cash App a C+.
To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.