Saving is just like budgeting. It isn’t the most fun thing to do but it must be done. It is proven that if you automate your saving you will save more money. Automation makes saving easier and, most importantly, you won’t forget about it. Check out these 4 awesome apps that help you automate saving so you can reach your goals (and save more money)!
Digit is an extremely popular app used to automate saving without you doing any work! Yes, you read that right, without doing any work. Digit analyzes your income and spending and decides if it can transfer some of your money into a FDIC insured deposit account that earns no interest. Between $5-50 are transferred at a time.
Digit is an app that I currently use to assist in my saving goals. Digit truly makes it easy to save without even trying. After analyzing your spending, Digit sends a text letting you know how much it has saved for you.
Your money is FDIC insured with Digit. The only downside that I see with Digit compared to a typical savings account is that Digit does not pay any interest. Since Digit is a free tool, the application makes money through the interest it earns from each person’s account. Therefore, I wouldn’t use Digit for any lofty savings goal. It may cause you to miss out on additional interest payments.
If you want to try Digit out for yourself, click here! You’ll get $5 for using the link (and I’ll get $5 too)!
Qapital makes saving fun! The app helps you automate your savings in 8 different ways:
- Round-up Rule. Save each time you pay something with your card.
- Spend Less Rule. Save when you spend less than your budget.
- Guilty Pleasure Rule. Save when you buy things you’re trying to resist.
- Set & Forget. Save a fixed amount daily, weekly or once a month.
- Apple Health Rule. Reward yourself for hitting your fitness targets.
- IFTTT Rules. Make any activity into a savings trigger.
- Freelancer Rule. Every time you get paid to set aside 30$ for Tax Day.
- 52 week Rule. Save $1 week 1, $2 week 2 and so on for 52 weeks.
Qapital is another app that I have experimented with. I really like that Qapital allows you to save for a common goal with another person. I was able to set a common goal with a friend for $1200 total. The app would show us both how close we are to the goal. It was a perfect way to plan a trip with a friend and ensure we both saved enough money.
I just learned about the freelancer rule option. Lately, I have been working hard to break into freelance writing. I love how the freelancer tool automatically sets money aside for tax time!
Interested in trying Qapital for yourself? Check this link for $5 added to your account (and I’ll get $5 too).
Related: Qapital: Making saving fun!
Acorns is a bit different than the first two apps discussed. It is a micro-investing application which means your money is actually invested in the market (specifically within select ETFs – exchange traded funds).
What I love about Acorns is that you can set the app to round up your change to the nearest dollar on debit card and credit card transactions. Then the application will invest the change for you. In addition to rounding up spare change, the app also allows you to set up regular automatic transfers from your bank account.
Personally, I use the app and I am always amazed at how fast my spare change adds up. I will say though to beware that this money is not in a secured FDIC bank account. Therefore, if you plan on using it for a more liquid saving account ensure you have a conservative portfolio so that you aren’t as affected by market volatility.
If you are ready to try Acorns for yourself, click here. You’ll get $5 added to your account (and I’ll get $5 too).
Stash is very similar to Acorns in that it is another micro investing app which means your money is actually invested in the market (specifically ETFs or exchange traded funds). Instead of rounding up your spare change, Stash allows you to invest a certain dollar amount weekly or monthly into your account. In addition, Stash lets you invest about your beliefs, values, and favorite things. For example, a few of the ETFs to choose from are given the following titles:
- Do the Right Thing
- Equality Works
- Retail Therapy
Stash is another app that I personally use. Although it is extremely similar to Acorns, the categories of investments are extremely enticing for new investors. The different investing categories truly make Stash stand out from the crowd. Like Acorns, though, beware, the assets are not FDIC insured so you if you plan to use this tool as a liquid saving account invest in more conservative or money market instruments.
Ready to try Stash? Click here and you’ll get $5 added to your account (and I will get $5 too)!
Although those 4 apps are awesome, there are many other ways to automate saving.
- Payroll Automation. Typically you can set up an automated saving plan directly through your payroll. Instead of having your entire paycheck go to one bank account, the paycheck can automatically go into 2 or more different bank accounts. A tip to avoid accessing the second bank account is to use an account that you do not have a debit card for. Therefore, you aren’t tempted to take money from the account.
- Bank Automation. In addition, most banks will allow you to do an automatic draft from your checking account to your savings account. You can start small and have $50 or $100 automatically transferred from your checking to saving account throughout the month.
- Retirement Savings Automation. Although saving for retirement is long term, it is imperative that you have your retirement savings set to auto drive. If your employer offers a 401k, you can set up a certain percentage or dollar amount to automatically be invested in your 401k plan before you even see your paycheck. It is the ultimate out of sight out of mind. If you set up pre-tax deductions into your 401k, it will lower your tax liability and you won’t even feel like you are missing much.
What do you use to automate saving? Have you tried any of those 6 apps?
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