A Twenty-First Century Way to Save

One of my 2020 goals is getting more organized with my savings. So, for the past three months, I’ve been exploring new savings and budget smartphone apps. I had a few short-term goals in mind I knew I wanted to save for this year. While I had been making progress on them by adding to my savings account, I wanted a simple way to see how my account was broken down by goal. Opening individual savings accounts for each goal or manually calculating subtotals for each goal in a spreadsheet is more of a hassle than I’m willing to put up with.

I started searching on Google and the Apple App Store for a potential solution to my problem. Then I stumbled upon an article about Digit. Digit is a savings goal app that connects directly to your bank account, monitors your spending habits each month, and saves a little bit for you every few days when it thinks the timing is right. The money you deposit into the app is FDIC insured. Your data is secured by 256-bit encryption, so you can rest assured your money and data will remain safe if you decide to use the app.

Digit has several things going for it. First, as I mentioned before, it monitors and learns your spending habits, and it does a really great job. Even in the first month using the app, there were days that I would open the app and a message would pop up saying, “You have some expenses coming up, so I didn’t save anything for you today.” If you have monthly bills set up on auto draft, the app learns your spending habits even quicker. Digit also has overdraft protection; it won’t save anything for you on days when it thinks your balance could drop below a safe level.  The downside is that Digit also won’t allow you to transfer more than a “safe” amount manually on a specific day if it has reason to believe doing so might drop your account below a safe level, even if you know it wouldn’t.

The second attribute working for Digit? It is extremely customizable. You can create as many savings goals as you want. Car, down payment on a house, gifts, travel, etc. You have the option to put a target amount on your goals, and you have the option to “boost” your goal. Boosting triggers the app to save more toward that specific goal that any other goal. You can also put time frames on your goals. Digit then responds by telling you how much it will need to save weekly or monthly to reach the goal in the specified amount of time.

Digit also includes a savings cap feature. This allows you to put a daily limit on how much the app will save toward any specific goal per day. You can set up auto withdrawal as well, so the app knows to transfer money for a specific goal to your bank account on the day of the month that you choose. This feature has been especially helpful for paying off my credit card balance every month.

Lastly, the app is very user friendly. I appreciate this because navigating other savings and budget apps I’ve used in the past has been very complicated. With Digit, once you open the app, all your goals and amounts are listed on the main screen. You simply click into each goal to customize or add money.

Digit costs $5 per month. However, with all the flexibility and organization that it provides, I’m getting at least that much value from my monthly subscription. Being able to see the progress I’ve made toward reaching each of my goals has given me a sense of accomplishment, as well as the motivation to keep saving.

-Hannah Bartlett

 

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any opinions are those of Hannah Bartlett and not necessarily those of RJFS or Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.  Raymond James is not affiliated with and does not endorse the services of DIGIT.  Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Starks Financial Group is not a registered broker dealer and is independent of Raymond James Financial Services.

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