3 Reasons You Should Be Using Digit for Automatic Savings

Okay, I admit I’ve seen people talking about Digit in the past.  It’s an app that claims to automatically analyze your spending patterns and painlessly (and sort of behind-your-back) transfer money to savings for you, when it thinks you won’t notice.  In other words, in theory at least, it looks at your checking account activity and goes, “Hey, she won’t miss $15 today – let’s move that to savings!” I’m a little skeptical, though, for a couple of reasons:
  • I’m envisioning a situation where the app decides I won’t notice a $100 withdrawal to savings…on the same day that a large check needs to clear, causing it to bounce.
  • I’m slightly insulted by the idea that I need an app to save money behind my back, because I apparently can’t do it on my own (although let’s be honest, it’s not like all of us go into our checking accounts thinking “Hmm, what can I spare today?”
However, I’ve decided to give it a go because:
  • Digit allows you to set goals, and then automatically tries to help you achieve them – making saving for that upcoming vacation a “set-it-and-forget-it” activity.
  • Another method of saving money, on top of what we’re already doing, is ALWAYS a good thing.
  • I hate to admit it, but it’s completely true that we wouldn’t really miss an extra $5 here or $20 there.  Finances are streamlined, but they’re not that tight – so I buy into the idea that we might not notice Digit activity any more than we would notice an extra $10 spent at the grocery store.
  • Wouldn’t it be great to be looking at your broken dishwasher – or other high-ticket item – and wondering how you’re going to pay for it, only to remember that there’s more than enough to cover it in your Digit account?
So, for now, it’s connected to my checking account and set to start saving.  I’ll post updates as we go along, letting you know how it goes. Have you tried Digit, or want to?  Please post comments below! Update 12/6/2016: A week into using Digit, I have to admit I’m pretty impressed.  I actually am finding more value in some of the other services Digit provides, such as:
  • A daily text update letting you know your bank balance
  • Notifications of large withdrawals
  • A quick and easy way to get your last 3 transactions, automatically via text
So far, I’ve saved $26:
Digit Automatic Savings Review – How I saved $26 last week without noticing!
Update March 20, 2017: I’ve saved $236! And truly, I forgot about Digit completely…until I found myself wondering if we had enough in the “fun” account to hit the Keys this weekend. The answer is yes – thanks to Digit, we’re ocean-bound. You might choose to use your Digit savings for more long-term goals, such as transferring into your IRA or paying off debt, but for us, right now, Digit is a great set-it-and-forget it method of saving up a little here and there for a weekend away.

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