Digit May Have Just Solved Your Saving Issue

One financial tip that we have all heard millions of times is to automate our savings! And even though most of you know that this is the most effective way to consistently save, many still do not implement this strategy.

I’ve had the opportunity to see first hand how automating your savings over time can almost guarantee that your savings account will grow versus you manually transferring money to your savings account whenever there is some “leftover” after paying your bills.  After meeting tons of people in their late 50’s to early 60’s who are living paycheck-to-paycheck with no savings except the money in their retirement accounts, because those funds were automatically taken out of their paycheck and placed in their retirement account, further various that automating your savings is key and it works.

If automating your savings is still a issue for you then Digit may have just solved your issue.

How Digit Works

Once you sign up, you connect your favorite checking account and Digit will begin working behind the scenes to analyze your income and spending and find little amounts of money that can you can save without effecting your spending!  This transfer from your checking account to your Digit saving account will take place every 2-3 days.

Why I Am Loving Digit

After speaking with their amazing CEO, Ethan Bloch and hearing the passion that he has for personal finance and has had since he was a kid (I thought I was the only one) 😉 it is obvious that Digit is truly going to be a game changer in the financial tech space and help millions of people to finally begin saving!

I am also loving that Digit sort of “tricks” you into saving, which I have always thought was going to be key for most people. They have already forced me to save $60 in the past two weeks since I have signed up! I am sure, I would have blown that money on a bottomless brunch!

 

My actual Digit savings so far!

The Downsides of Digit

There aren’t many downside that I can find, but here a few, that may be bad for some and good for others:

You will get at least one text a day from digit. At first I was kind of annoyed with the text, but now I am actually beginning to appreciate them. The texts are very informal by telling me the balance in my checking account each day and will even tell me how if there was a change in my account from the day before.
All of the banks/credit unions in the world do not connect yet. Digit is currently only connected with 2,500 banks, which is a large amount, but there is a chance that they may not have a relationship with your bank yet.
If there is not a significant amount of money in your account, your savings will be limited. This is not a big deal, but just keep in mind they can’t save money you don’t have and With their no-overdraft guaranteed, you don’t have to worry about them saving money you don’t have or need to use for bills.
The money in your Digits savings account will earn 0% interest. This is truly the only “bad part” of Digit (I am sure this will change in the future), however with interest rates so low, this really is not that big of a deal and face it, if you were saving nothing before…let’s just celebrate that Digit finally has you saving something!

Some Questions I Had and You May Have Too About Digit

How much does it cost? Nothing. You will see “Hello Digit Inc” transaction in your checking account which are the transfers to and from digit.
What is this no-overdraft guarantee? Digit is confident in their ability to calculate the amount it can safely transfer, if they do overdraft your account, they will pay the fee.
Is Digit safe? All funds being held within your Digit account are FDIC insured up to a balance of $250,000.
How do I access the money in my Digit savings? You can withdraw money from your savings 24/7 and as many times as you want throughout the month. Jut text ‘withdraw’ and the funds will be in your bank account within one business day.

How I Got Started with Digit

1) First, I went to Digit.co
2) Connected my checking account
3) The savings began!

Digit is still invite only, so make sure you use one of the links in the post to join the savings party!

I would love to hear your thoughts on this awesome new financial technology! Happy Saving!

[ctt template=”3″ link=”c4aq1″ via=”no” ]This could be the answer to your saving problem.[/ctt]