As you might be able to tell by now, 2020 is not full of resolutions for us, but GOALS. This month we are focusing on sharing our life hacks and tips and tricks that we use in our day to day lives. Since January is such a “New Year, New Me” kind of month – let’s talk about saving money. In December, Emily put me on a strict budget that started on January 1. After all, she is the expert when it comes to that. Today, I am going to be sharing a little bit about my financial habits, and my number one money-saving hack. If you missed our last post on saving money, check it out >> HERE.
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My Number One Money-Saving Hack
Before I share my money-saving hack, I want to just tell you a little bit about my financial habits. One, for accountability, and two, if you relate to me, then this will hopefully be helpful for you too! On a scale of 1-financially responsible, I would place myself around a six. While I don’t have any debt, I am not the best at saving money. Sure, I have a savings account, but it hasn’t really grown a significant amount in the past few years or so. I pay off all my credit cards monthly, I buy pretty much what I want, and I spend without thinking. This means, there’s not much left over to put aside at the end of the month. But I do need to save money for taxes (our income isn’t taxed), and big-ticket items that I want. Enter Digit.
Digit is my favorite app of all time. This is what I use to save money. I have successfully saved for: this Max Mara Coat (took me over a year to hit my goal), this Bottega Veneta pouch, a Peloton tread that I have yet to order, and our Honeymoon. I currently have all of my tax money set aside in there and set up a savings goal for Baby Joe.
This year I plan to use it a little bit differently. I want to set two goals a month – one for savings and one for taxes and just transfer them out as soon as I hit the goal, and then start all over again on the first of next month. We want to buy a house soon and so this is definitely the first step!
What is Digit?
Digit is an app that analyzes your spending and the amount in your bank account and automatically saves the perfect amount every day, so you don’t have to think about it. Meaning: if you only have $100 in the bank, it’s not going to pull out $80 to save. Once you get going, Digit saves a few dollars for you every day. The idea is for you to hardly notice the money is leaving your account, but then you’ll eventually end up accumulating a lot of savings in the long run.
How Does it Work?
1. Sign up for Digit and connect your bank account. You won’t need your checking or routing number.
2. Digit analyzes your spending and automatically moves money from your checking account to your Digit account when you can afford it.
3. That’s it! You save money without realizing it. You don’t have to keep a minimum amount in Digit and you can withdraw your money anytime.
Is it Safe?
Yes. Digit uses state-of-the-art security measures. Your personal information is anonymized, encrypted, and securely stored. All funds held within Digit are FDIC insured up to a balance of $250,000.The app uses 128-bit encryption and won’t store your bank login.
Does it Cost Money?
A monthly subscription costs $5 and can be canceled anytime.