I easily saved hundreds of dollars last year using this super simple app – here's how
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I'll be the first one to admit saving money isn't easy. Though I try to be mindful of my money, it's hard to consider my future finances when I hail a cab late one night or spot a "once in a lifetime" travel deal. And if I'm being honest, creating a formal budget sounds like a headache. Along with doing your laundry and cooking dinner, saving money is something every adult should do. But just because we should save money doesn't mean we actually do it.
According to a survey by GOBankingRates, 69% of Americans have less than $1,000 in their savings accounts, while 34% have no savings.
I was initially skeptical when my friend recommended a saving app called Digit last summer. I didn't think that by downloading an app I'd probably never use would end up saving me all that much. However, after using Digit for a year, I found saving money can be as much of my routine as doing laundry.
Once you download Digit, you'll need to link the app to your checking account. Digit uses a 128-bit bank-level security system, which helps keep your information safe.
From there, the app analyzes your spending patterns, like your morning cup of coffee, rent and utilities, and when you receive your paycheck. Each day, Digit compares your current balance to previous days and predicts your future cash flow. If you have some extra cash on hand, Digit can automatically transfer a small dollar amounts into a separate savings account. Setting aside a little bit every few days doesn’t seem like it’ll make a big difference, but you can end up saving a lot over time. All Digit savings accounts are FDIC-insured, so they’ll cover up to $250,000.
Digit also makes keeping tabs on your savings incredibly easy. The app sends daily texts about your current balance, recent transactions, and how much you're saving. If you want to receive more information, modify your account, or withdraw money, you can do it by texting back. I love how easy this feature makes banking.
I've already saved a couple hundred dollars through Digit. Not only did I avoid drafting up some unrealistic budget, but since Digit analyzes my spending habits, I was able to save without altering my lifestyle. I was able to go on three vacations this year, regularly go out to dinner, buy a large iced tea each morning, and still save some money. I managed to do it without feeling like I was restricting myself too much, and I think this method will be helpful for a lot of people who might want to save more but don't know where to start.
For the first 100 days, you can use Digit free of charge. Once the trial period is over, the app costs $2.99 per month. Below, I walk you through setting up and using Digit.
Create an account
Once you enter your name, e-mail, and phone number, you'll be required to connect Digit to your checking account. I'll admit I was wary about sharing my account's routing number with an app, but Digit uses bank-level security and doesn't store your information, so your account will be safe.
The app is compatible with over 5,000 US banks and credit unions, so it's bound to work with your account.
If you don't know where to find your checking account information, try looking at your W-2 or 1090.
Get text updates
This is hands-down my favorite feature. Checking your balance each morning is a great way to avoid overdraft fees and catch fraudulent charges, but I always forget to do it. Digit's text notifications makes it a lot easier to keep tabs of my finances. Each morning, I receive a text outlining my balance, recent transactions, and how much I've saved.
If I want to see recent transactions or save more money, all I need to do is text "Recent" or "Save More," respectively. You can find a full list of commands here.
Digit also uses GIFs and cheeky salutations like "Yo," "Ciao," and "G'day," which makes your finances feel a little more fun.
Decide how much you want to save
Digit uses a special algorithm to determine how much money to save, but can also customize your saving habits:
- Turn "Automatic Saving"on or off: Through the "Automatic Saving" feature, the app will do the legwork for you automatically save money whenever it sees fit. Digit will start saving within two to three days after you set up an account. If you want to be more hands-on with your savings, turn "Automatic Savings" off.
- Save a specific amount of money: Want to take matters into your own hands? You can transfer certain amounts of money into your Digit saving account. To do so, text "Save" and the amount you'd like to transfer.
- Set a checking account minimum: The checking account minimum is a great option for anyone who wants to have a certain amount of money in their account at all times. Once you set your minimum (it doesn't matter if it's $25 or $500), Digit won't save if your checking account dips below that number. To activate this feature, simply text "Minimum" and your desired amount.
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