What are you currently saving for? Is it a new car? A festival? A much needed vacation? Oh wait, you’re probably saving for multiple things aren’t you? Same here, which is why I totally understand how difficult it can be to start saving. I recently downloaded an app that takes the stress of saving completely off of my shoulders. Let me tell you how!
Digit is a savings app that helps its users save small amounts of money over time. It uses an algorithm that looks at your current balance, spending habits, upcoming bills and income. After that, it will save a “safe amount” of money for you every 2-3 days. The whole dream is to help people save money without impacting their lifestyle. Digit believes that anyone can start a savings plan regardless of what they make.
I have constantly heard that you should have 3 months worth of pay saved as a Rainy Day fund. As an example, let’s say the average 20 year old makes $28,000 to $30,000 a year. In this case, a person would need to have about $6,500 saved. That total only goes up as we get older. CEO Ethan Bloch said in an interview that “60% of this country doesn’t save any money in a given year [and] 40% can’t come up with $400 in an emergency.” This app is meant to change the way people save money, and prove that people of all incomes can save.
The Design (As Advertised)
- When you open up the app it will provide you with a summary of savings since the last time you looked.
- On the same page it will list out the goals you are saving towards. This will track your progress towards those saving goals.
- You can also add new goals whenever you like, like some of the above ones listed. But don’t worry, if you have a custom goal, you’re given the option to put it in and select a unique emoji.
- For a more in depth look on a particular goal, you can open it up to see the exact savings that have gone towards it.
- I absolutely love this feature. This app provides a “Low Balance Protection” option. If your checking account balance falls below a certain amount, specified by you, it will pull from your Rainy Day fund to bring it back up. (No more overdraft fees!)
- This is a feature that I have yet to use, but you get 1% back on whatever you save through the app during a set time period.
Fees & Features
|Fees||30 Day Free Trial then $2.99/Month|
|Access||Website, iOS App, Apple Watch, Android App, SMS|
|Support||Text messaging and FAQ forms within the app/online.|
|Transfer Time||Chase/Wells Fargo: Same Day Delivery|
Other: Next Business Day
|Promotion||Get $5.00 FREE just for signing up.|
How Much Have I Saved?
I started using this app on April 15, 2019 and I wanted to do a review shortly into using the app. I felt like that would give people a good idea on what they could be saving. My yearly income is about $34,000 and I have been avidly saving separately from this app as well. So I generally keep myself on a pretty tight budget. Here’s what I’ve saved in less than 25 days.
Total = $63.59
I recognize that this app is based off of what is known as “micro-saving.” It is unlikely that it will save hundreds and hundreds of dollars for you in a short time frame. After all, this is meant to save without noticing that it’s taking any money at all. To be honest, during the time that I started saving with this app, I didn’t feel any financial strain when it came to saving.
I have the automatic Rainy Day fund set up but I also made some more personalized goals and gave them a due date. Digit will save for me to help me reach my goal by that date, rather than saving whatever amount fits. I also just added a new goal the same day as this screenshot was taken, that is why it says $0.00.
Would I Recommend This App?
To put it simply, my answer is yes. But let me tell you what has worked well for me while using this app.
- Create a budget. I have a pretty precise budget and I keep track of where I spend my money. There are apps to help you create yours and it’ll help you keep tabs on any overspending.
- Save money outside of the app. This app truly does work, but I would use it as a back up savings method. Take a hard look at your budget and see what you can save on your own first.
- Use it for smaller goals. It is unlikely this is going to save enough to buy that new car you might’ve been looking at, but it can definitely save enough to cover any maintenance fees you might have.
- Think long term. If you need a bunch of cash ASAP, don’t rely on Digit. Use it for a goal that you have about 3 months or longer to achieve. Due to its algorithm, it will benefit you the most if you aim for a more long term goal.
The thing I like most is that I can save about $1,000 in a year without even thinking about it. If I save even more outside of the app, that’s a whole lot more I’ll have in my pocket. Especially in the economy today, it really makes saving for my future more attainable than before.