Is Digit right for you? Read on to find out…
Saving money can be hard. It’s especially hard if you’re not sure where to start. I firmly believe anyone on any salary can and should start a savings account.
I also understand it’s not as easy as it sounds. I worked minimum wage jobs for years (back when the minimum wage was still around $5.15) and the thought of saving any money seemed laughable. But, I started with the old school method of saving all change I received (coins only) and placing them in a jar. I’d cash it in every month and put that money into savings to be used for emergencies. It wasn’t always a lot of money. Sometimes it was $22 bucks and other times, it neared $40, but it felt good to slowly start building a safety net.
Years later, I now have multiple income streams and my savings accounts automatically receive money each time I’m paid.
But, no matter where you are on your financial journey, you can save. And you can do it without thinking about it.
The Digit savings app does the work for you
I downloaded Digit years ago. When I first opened an account with Digit, the app was still completely free. I loved how simple it was to sign up and connect to your checking account. For the first week, the app mostly surveyed how I spent my money, checking to see how close my balance got to $0 and how much cash flow was going in and out.
Digit uses this data to figure out the best amounts to pull into your savings account. It customizes its savings plan to fit your needs and lifestyle, which is so convenient for those of us who don’t have time to actively save each day, week, or even month.
Digit’s unique savings features
One of the best features Digit has to offer is its adaptability. It offers a variety of flexible features including:
- Overdraft protection. This protects your checking account if your balance dips too low by automatically moving money from Digit to your bank account.
- Savings threshold. Decide how low you want your checking account to be before Digit stops saving. For instance, if you like to have $400 in your checking account at all times, you might tell Digit to stop moving money once your account reaches $450.
- Multiple savings buckets. You can set as many savings goals as you want — vacation, wedding, new car, debt — and Digit will separate your money into individual buckets for you.
What I love most about Digit is how mindless it is. The app does all the work for you and takes out such small amounts (you can adjust how large or small) that I never even notice the money missing from my checking account.
Pay off loans and debt with Digit
Another nifty feature Digit rolled out in the past couple of years is credit card and debt saving services. Similar to savings goals, you’ll save money to pay off a specific credit card or loan. The difference is, Digit will actually connect to the account and pay the bill on your behalf.
I use this as an “extra” payment towards one of my highest credit cards and student loans. I wish you could connect more than one credit card or loan, but I’m happy to have this automated help in the meantime!
Investing with Digit
Another new feature Digit recently rolled out is Investing. Similar to Acorns, Digit allows you to invest your money automatically. Digit allows you to pick between retirement and general investing paths, so you can invest in whichever plan is most important to you.
I haven’t used this option yet, particularly because I just decided to open an account with Ellevest (I’ll review this service soon!), but I love that Digit is offering a simple way for users to begin investing.
Cost of using Digit
When I signed up for Digit, it was still a free service. Now that they’re offering users even more features, I understand why it’s a paid subscription. You can sign up for digit now for $5 a month. You’ll also be able to try it out free for 30-days before committing.
Full disclosure: Since I’ve been using Digit for 6+ years, I’m grandfathered into a reduced monthly subscription of $2.99. I love that Digit supports loyalty from its long-term customers, but even if I had to pay $5 per month, I would.
Who is Digit best for?
I recommend Digit to just about anyone beginning their savings journey, but it’s not right for everyone. Here’s who should consider Digit and who might want to pause on the idea for now.
Digit is right for you if:
- You’re ready to save but don’t know where to start. Digit will automate the process and you can easily spin the savings rate up or down to meet your needs.
- You’re struggling to pay down debt. Let Digit take some of the burden off your shoulders by automatically paying at least one credit card and one student loan. As your money grows in your Rainy Day fund, you can start paying off credit cards and loans faster than you imagined.
- You want to invest, but don’t know where to start. Digit will help you save and set investing goals to plan for your retirement and build a diversified portfolio to begin growing your wealth.
Digit is not right for you if:
- You’re struggling to make ends meet. If you know you can’t afford to say anywhere from $10 – $100 per month, don’t pay for Digit. Instead, look at where you can cut expenses and revisit this app when you have more of a cushion in your budget.
- You already pay for investing and savings apps. While I think Digit is one of the best financial apps on the market, you might already be using one that works well for you. If so, then, don’t add another cost to your expenses! Stick with what’s working or try Digit for 30 days and switch if you like it better.
Even small savings add up
When you’re new to saving money, it’s easy to want to see the numbers add up right away. The truth is, it’s a long-term game and while you’ll see savings growing over weeks and months, it’s much more important to make saving your money a habit. If you always forget to save or struggled to put enough away, see if Digit can help.