Welcome to the next article in the Simple Savings Sunday series. This series is just really easy tips to help you save money. It doesn’t take much to save some money here and there, as long as you try. We have a little problem in this country, with over a third running with delinquent debt. I don’t like that number and used to be a part of that crowd. Now I work hard to make sure I stay away from running debt and help others do the same. Simple Savings Sunday gives you actionable tips to use right now, today! You can read the article and right then start making a change. That’s the end goal of this series and today doesn’t disappoint. Today, we’re going to talk about saving money when you don’t think you can.
So, You Have No Money to Save
This is a common problem and one I’ve experienced. Before I realized the error of my money ways, I had no savings. I was spending everything I earned. It was a bad situation to be in and one that could’ve been totally avoidable. I only blame myself and my selfish spending ways! All during my college years and especially when I was in debt, I never thought I could save money. I didn’t think I had enough to do it. Obviously I got into debt, so it must have been true, right? I would’ve stayed debt free if I had money left over at the end of each month. Well, I actually don’t think so. The problem with me is that I was spending anything and everything that hit my checking account. It wasn’t about saving money. It was about spending every dime.
The biggest misconception people make about their money is they have no room to save. We put savings on the back burner most of the time. If you don’t believe me, then check out this graphic. This graphic is a little outdated, but the numbers still provide the message. We don’t save much. We are more focused on making money and spending it. We want the status symbols that come with our hard work. We want the glitch and glamour. We want impress people.
Luckily for you, I was introduced to a new savings tool last month. I have been testing it for a month and I think it’s time to share it. Let me introduce you to Digit.
Welcome to Digit – The Automated Way to Save
My buddy J.Money, from Budgets are Sexy, introduced me to Digit. While I wasn’t looking for a new savings account, I thought the concept was interesting, so I signed up to give it a go. Let me tell you, I was impressed by this sleek little savings tool. First off, signing up for Digit is free. It doesn’t cost you anything. Here’s how you can get started with Digit.
When you head here to sign up, you will put in some information, just like you were signing up for an account at any other service. You need your name (first and last), email address, and password. Click the “Sign Up for Free” button and get started.
The key to Digit is how it automates savings for you. Not in the way you think it would. I’m not talking about how you set up automatic transfers from one account to another, I’m talking about smart, analyzing algorithms that find ways to save based on your spending. When you sign up for Digit, you have to hook your bank account to their system. This is how you save. It takes the system a few days to analyze your spending patterns. It does this all behind the scenes. Then, one day, Digit will start saving for you in an automated fashion. You can choose how often it can move money from your bank account to the Digit account.
You might wonder why you would do this. Why would you setup a savings account at another place just to save a few dollars here and there. Well, let me be the first to tell you that their system does something no one has done before. Since they are analyzing your spending habits, they are able to find where you have money left over or not being used. Instead of that money just sitting in your checking account, ready to be spent, Digit moves it to their account. This keeps you from spending the money on things you may not need. While your Digit account doesn’t earn you any interest, the key in the software is getting you to save where you didn’t think possible.
After my first two days on Digit, it was able to save me $28 with two transfers. As the days went on, it just kept increasing as it was makings sure my spending aligned with their transfers. The Digit system works off text messages. Yes, text messages. They send you daily updates (if you want them) telling you how much you have in your bank account and where it was prior. It also allows you to withdraw money with a simple text message and have your money sent back to your account the next business day.
What About Overdrafts?
The biggest concern I had about Digit was overdrafting accounts. We all know banks make a boat load of cash with overdraft fees. Simply having to pay almost $40 just for the convenience of the service. Now, here is where Digit comes in. They believe in their smart savings approach so much that if you overdraft based on their transfers out, then they will pay the overdraft fee! Yes, that’s right. If they overdraft your account based on their transfers, they will pay the fee! Since I hate overdrafts, I thought this was a good bet.
Now, you may be skeptical of Digit, but they seem quite legit. You get an FDIC-insured account with them and it’s easy to use. If you’re good with texting, then you can run your Digit account with no problem. If you’re like me and just want to test the service, then you can do so easily. Once you setup an account, let it run for a few days. You will know what’s going on due to how Digit informs you of everything. If you don’t want anymore transfers from your bank account, just text Digit “pause” and they will stop their system. There are more texts you can send them to control your account as well.
Want to Save? Try Digit!
I was impressed by Digit and I think their system will be a great way for those who need to save money. While I don’t use Digit much because I’m good at saving money and have my money in accounts that earn me interest, I feel this setup is great for those who don’t think they can save. I always think people can save money, but they have to know where to look. Well, now Digit just does it for you. While saving a few dollars here and there might not allow you to retire a millionaire, just the idea of saving money can be empowering. Trust me, I used to spend everything I had, but now I save a lot and it feels great. There are not many other better financial feelings than watching your savings grow!
If you want to do better at saving your money, but don’t think you have enough each month to do it, then try Digit. Seriously, it’s free and FDIC-insured. It won’t you anything and you can stop it at any time. Just try it to save money. You never know where you might end up when you start seeing those savings grow.
Learn more about Digit at Digit.co
Do You Know Your Credit Score?
Even if you don’t plan on getting a loan, a good credit score can affect your ability to get a job, a place to live, and will save you money whenever you need to borrow. If you don’t know your credit score, you can get yours free at Credit Sesame. It’s 100% free with no credit card required to signup. I’ve been using it for years to monitor my credit score.