How to Use Digit to Reach Your Money Goals

*This post is sponsored by Digit. All opinions are my own.

If you’ve never heard of the Digit app, I’m excited to be able to enlighten you! I’ve been using Digit for years and it’s truly one of my favorite ways to save money, with little effort. Seriously…outside of the initial set up, there isn’t much work that needs to happen for Digit to do its thing!

I’m going to break down how Digit works and share how to use Digit to reach your money goals. Long gone are the days of making saving money difficult. Any and every chance we have to save more money, with no effort, we need to take it and run!

What is Digit?

Essentially, Digit is a financial health app that connects to your primary checking account. It has an algorithm that assesses your spending behavior in that checking account. That algorithm helps Digit determine how much money to transfer out of your checking and into your Digit savings. It takes small amounts of money at a time, so you don’t even feel like it’s happening.

The beauty of Digit is that you can set up multiple Digit savings accounts based on your goals (like one for vacation, one for a new car, etc.) and have them all in one place. This is especially useful when contributing to your sinking funds. The great thing about Digit is that those small amounts of money add up quickly. Before you know it, you have a nice chunk of change in your Digit savings accounts!

Another thing to keep in mind is that you can take the money out of your Digit account at any time. If you reach your goal, or need the money for something, it’s a simple transfer back into your checking account. You don’t have to worry about not having the money when you need it.

What do you want to save for?

Below is a screenshot of my current Digit app. As you can see, I have a “Rainy Day” savings (which usually comes standard when you set up the app. I also have a “Just Because” savings (which I set up to see how quickly I could reach $500). The final savings was from the Frugal Fall Savings challenge that ended not too long ago.

As I mentioned above, there’s no limit to the number of Digit savings funds you can have. Because of that, Digit is one of the best tools for saving for non-emergencies and recurring items. It’s also great for one-off savings challenges or upcoming events.

When you get your Digit app set up, you’ll want to start thinking about what you plan to use Digit to save for. You don’t have to get crazy specific, but I always recommend having a purpose for each savings account. Start simple. Use Digit to save for annual expenses, like birthdays, car registration, or semi-annual insurance payments.

If you want to get a little more creative, use Digit to help you save for something you’ve been wanting. Whether it’s a vacation, a Gucci belt or a nice gift for someone. You can determine what the goal is, so you see it every time you open the app. You can also set the amount you want to have saved, and Digit will do everything in its power to help you reach it, especially by the due date you set.

Struggling to decide what to use Digit for? Check out the article 10 Sinking Funds to Include in Your Budget. Digit can help you save for any of the items on that list that apply to your situation. Anything to help you get ahead is very much welcomed!

How to use Digit to reach your money goals

Once you have your Digit app all set up, it’s time to start working towards those money goals! Digit allows you to get specific with what you want to save for. You can set the name of the account as what you’re saving for. From there, you can specify an amount and the date you wish to have saved that amount by.

This capability is what’s going to help you reach your money goals in a reasonable amount of time. Digit will take as much as it can from your checking account to help you reach your goal by the due date. Sometimes, if you have too many transactions happening in your checking account, you may not reach your goal. That’s okay. Anything saved is better than nothing saved!

Digit success tips

Digit has some cool features, like sending you text messages to keep you motivated to reach your goal. I love having this feature enabled. Digit also sends a weekly check in text to share your account balance and how it may fluctuate week over week.

If you follow the zero-based budgeting method (like I do), then you know every penny counts. Digit has a feature that allows you to cap how much money it saves for you each day. This will allow you to give yourself a budget for Digit for the month and make sure other priorities are covered. When you feel like Digit is doing too much, definitely leverage this feature.

My last tip is to recommend Digit to all of your friends! Each time you refer Digit to a friend and they sign up (and have their first Digit transfer), you both get a free $5! Obviously, $5 is not game changing, but it definitely adds up. So, if you have a friend who could use Digit, make sure you send them the details!

Related: 3 Apps to Help You Save

Other than the monthly fee, which is minimal, I can’t think of any reason why a person wouldn’t want to use Digit to save more money! Easy savings that adds up quickly? I’m all for it! Are you a fan of Digit? Have you used Digit to get ahead and reach some goals? I’m happy to answer any questions you may have! Drop a comment below to share your questions or feedback on Digit!

The CGS Team



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