“If you don’t fail it’s because you did not risk enough, and if you didn’t risk enough it’s because you didn’t put your whole self out there.” –Carlos Barrabes
This week I’m trying out Digit. I found out about it after reading a ridiculous blog. This lady proclaimed she paid off her student loans in two years. I was hooked…or shall I say baited. It ends up she’s single with no kids and made about $5000/month in discretionary money. Guess what? I could pay off all my house and student loans if I had an EXTRA $5,000 per month. smh. What’s wrong with people?
This leads me to a little rant. Most self-help money books are common sense. Save more, spend less, don’t over extend. I actually get frustrated reading them. I won’t buy them, I check them out at the library and see if there are any actually new ideas in them. I don’t need you to tell me I should pay down the highest rate credit card first (simple math, right?). I need to know where to FIND money where there is none. I need to know how to get stuff for free so I can have extra money to increase my emergency fund. It bothers me that our education system doesn’t include budgeting/money management class in high school. People shouldn’t be able to make millions off of people because they don’t know how to budget. If you need help/ideas about budgeting use the web and your local library…don’t line the pockets of other people. It’s counter productive. Mic down.
So my emergency fund is a priority to me because there are a lot of layoffs going on in Houston this year. Digit is a new micro-savings account that helps you save small bits of money over time. You won’t get rich off the money you save, but it does initiate that first step toward creating a savings habit.
I’ve used it for about a week and it takes out between $2-6 every couple of days. I thought I would REALLY notice any money out of my account because I’m such a penny pincher. However, it really hasn’t bothered my budget. I think it’s because I generally leave about $25-50 in my budget every month as a cushion in case things are more than I expect. Digit is a smart little cookie and grabs from my cushion. I have to say I was hesitant to try this, but I’m so glad I did. I already have automatic savings in my budget every month, but this just adds a little more to my emergency fund and I really enjoy the little conversations I get. Here’s an example:
Every 2 or 3 days, Digit transfers some money from a checking account to a secure Digit account. Digit analyzes checking balance, upcoming income, upcoming bills and recent spending patterns and finds a nonessential amount you won’t notice based on how you’ve been spending. There is never a transfer of more than you can afford, and there is a no-overdraft guarantee.
Digit does not have plans to charge a fee for their service, so I expect it will remain free in the future. It’s not a service that’s going to make you rich, but it does help you stash away the extra money you won’t miss. Digit makes money by earning interest on the money you save, and pay out only a small portion to you. Any dollar you save with Digit and leave in your account for three months will earn you a 0.05% return of your cash. Each week, Digit will analyze your account and add up any savings you’ve not touched for three months, and then reward you with 5 cents for every $100.
I’m glad I tried it and I’m going to stick with it. Do you have any savings ideas? Have you tried Digit?