App Pick: Saving Money On The Low-Low With Digit
I’ve known for a couple of weeks that my wife and I are going to take a trip later this year…I just had to sell her on the idea.
She is the CFO of the family and before we make any moves that will “lean” on our bank account “the numbers gotta look good”. So to make my case, I had to present a plan to pay for the trip that wouldn’t conflict with all the other things we’re doing this year – Just had a baby so…yeah.
So I did some research and found the Digit app that makes saving money for an upcoming bill, specific goal (like this dope vacay we’re taking), or for those “just in case” moments automatic.
Here’s how it works. After you download the app and connect it to your banking account, Digit analyzes your income and spending habits and finds opportunities to stow away cash that you won’t miss into an FDIC-insured account. I’ve been testing the app for a couple of weeks and analyzed the withdrawal amounts, and Digit typically moves $2-$17 every 2-3 days.
After that, you’re essentially done. Digit goes about doing its thing and puts money towards a “rainy day fund”. If you choose to, you can use the chat-like “bot” interface to setup a specific goal or upcoming bill you want to save for by setting a dollar amount you want to save and the date when you want to save it by, and Digit will set it up.
You can use the app’s simple and easy chat interface (or your phone’s native sms client, which is the beauty of the app) and send “commands” to do things like create multiple goals, see how much you’ve saved so far, and get a quick snapshot of your bank account balance and get the last 3 account transactions.
Depending on your preferences, Digit will send you a daily or weekly summary of how much it’s saved towards your goal. If you want to get more aggressive, or temporarily pause saving, you can easily tell Digit to do its thing without jumping through a bunch of hoops.
When you’ve reached your goal (or at any time), you can message Digit to “withdraw” and you can move your money back into your bank account within a couple days.
Saving money automatically sounds all cool right…But I know what you’re thinking “BrothaTech, I don’t know about giving an app access to remove money from my bank account all willy-nilly”. That’s fair, and I had my reservations too. So let me breakdown the security/privacy aspect of Digit:
- Digit is covered by a 128-bit encryption and it never stores your bank login information
- Your personal information is anonymized and securely stored
- All funds saved with Digit are FDIC-protected up to $250,000
The main draw to Digit (in addition to being free to download and free to use) is that it tucks away money for you in such small increments so that you don’t even notice that you are practicing better saving habits (You prolly spend more on coffee and lunch).
Which helped me sell this vacation to Mrs. Tech – She saw that Digit was saving money towards our goal without any number crunching/budgeting, and at any time, we could ramp up or slow down the saving if something unexpected were to come up. So now I’ve gotta get back on my exercise grind to get my body right and tight before our trip.
*does two crunches*
Digit is free to download and doesn’t charge any fees. To learn more and/or to sign up, check out the Digit website.