If you struggle saving money, or hate having to take the time and brainpower to save each week, automated savings apps have the potential to rock your world.
The apps are designed with the user in mind, making saving money so easy that you do not have to do a single thing. Saving is transformed from an impossible goal to a mindless everyday occurrence.
Digit is a savings app that links to your banking account to put aside money for you. Their slogan is “Save money, without thinking about it.”
Digit has become increasingly popular with younger generations and with individuals who struggle to save. Rather than having to decide whether you want to save or splurge at the end of the month, extra money is taken out in small increments throughout the month.
Digit is the perfect friend for heavy spenders; the app is able to track your spending habits and monitor your income. Then, they occasionally pull aside money (never large sums) that you will not need for your routine expenses. Typically, this removal happens once or twice a week. It is never so frequent that it will affect your budget. The money is then kept in the app in a savings account. The app is able to send out text updates so that you are aware each time saving occurs.
If you need quick access to the savings, a short text to digit can have the money back into your account within one business day. No harm done! They have a no overdraft guarantee, your money is insured, and there is no need to set up a new savings account when you sign up.
You’re probably wondering… “So how much is this going to cost me?”
Digit is completely free, and a great tool for getting a jump start on your savings. Although you don’t receive interest, Digit is now doing something called cash bonuses, which is basically the same thing.
Right now, Digit is only US based, and is not available with all banking institutions (although it is with many). If you do not have much money, you will not save as much, but it doesn’t hurt to give it a shot!
Acorns is another automated savings app that works by rounding up all your transactions to the nearest dollar. It puts all the spare change into investments for you. They help you pick which portfolio you are putting your money into, and instead of hoarding your savings, you begin to invest.
Acorns is all automatic, virtually pain-free and easy, and has no transaction fees. It allows you to make money off of your money. Acorns is perfect for beginners who know little about investing; you do little, and they take care of the hard work!
However, Acorns charges a monthly fee: $1.00 per month for accounts under $5,000, and 0.25% per year for accounts over $5,000. Students and individuals under the age of 24 can have these fees waived.
As with any investment, there is always the chance of losing money, rather than making.
Give one of these two automated savings apps a try and reap the benefits. Saving money no longer has to be difficult and painful. Slow down your spending habits, better your finances and put away savings.
It is way too easy to spend money when it is just sitting around in our checking account. Take control of the situation and do not leave it there tempting you.