Wouldn’t it be great if you knew of several ways you could save money, but not have to track each individual purchase? Well, technology can come to your rescue because there are several different applications like Acorns and Digit that will help you do this. With so many purchasing options and advertisements in our everyday life, sometimes everyone could use a little help, and there is nothing wrong with that.
If you have never heard of Acorns before, then let me explain a little bit about the company itself. They help you proactively invest your spare change into Exchange Traded Funds, or ETF’s. To help this service automate your investing all you are required to do is link your debit card to your Acorns account, and the application will let you setup how much you want to invest or withdraw directly from your settings. It basically works like this, when you make a purchase Acorns then calculates how much spare change is left from that previous purchase, and then it will round up to nearest dollar and ask you for your approval to invest it. The service is practically free, and since we buy things everyday anyways, then it is a great way to proactively create residual income! If you are investing less than five thousand dollars it will only cost you one dollar a month; however, if you choose to invest more than five thousand dollars, then you will be charged 0.25% annually. To put things into perspective just try and add up how many different times a month you go out to the store, or you go out to eat. You can even build residual income just by purchasing a soda with your credit card from the gas station! This is truly a set it, and forget it service, and their reviews speak for themselves.
Moreover, if you are a college student and you want to invest I would definitely recommend you choose the Acorns platform. If you can prove you are in school for at least four years, then you will pay absolutely nothing until you go over the five-thousand dollar mark. You won’t have to worry about learning how to choose stocks, or what options are right for you, because the guys at Acorns have figured all of that out for you.
Is Acorns Safe?
For many of you this will be a hard thought about question, and when it comes to your money you should be asking these kinds of questions. The application is completely safe, and so is their website. Instead of using a standard http address, Acorn using https which means that it is hyper transfer protocol secure. It is an added layer of security that most web services use anytime they are dealing with financial matters like credit cards, or highly sensitive data. So, to answer your question, “Is Acorns Safe”? Yes, they are safe to use. I really appreciate the fact that they make investing look so easy. You shouldn’t be playing in the stock market unless you really know what you are doing, but that is what the experts at Acorns are for. They know what they are doing, and they know exactly where to put your money in order for you to make money. They do have a terms of service agreement, that does state you might not make any residual income, but it is such a low risk alternative to investing large amounts of money into other stock investments that I believe you can’t go wrong here.
Do You Need Help Saving More Money?
As I stated earlier, yes, at some point everyone could use the extra help when it comes to saving money. I know many of you don’t keep a running tab on your monthly purchases, and most of us only call our banks to verify we have the funds needed for that next purchase. This is a sure way to get stuck on the bottom of the financial ladder, because when you spend money like this you aren’t thinking about the future. That being said, when you only spend money in the “here and now”, or the present, then how are you giving yourself a chance to build your own little nest egg? The short answer is, you are not. Millions of people live from paycheck to paycheck, and wouldn’t it be nice to stop doing that? If you think you want more choices other than Acorn you are in luck because we have several different platforms that are trustworthy, and they will get you right on your way to building your financial future.
Digits is another micro investment platform, but this service will cost you $2.99 after the first one hundred days which are free. Digit works similarly to Acorns in the sense that you have to link your checking account to the platform, but instead of rounding up to the nearest dollar with every purchase, Digits will analyze your spending data based on two or three days of your total purchases, and it then invests an amount that it thinks you won’t even notice. This is a nice automated platform to put back all those pennies, and with an annual fee of about thirty-six dollars, you can’t beat it. Another great reason to sign up with Digits is that you can earn five bucks for every referral you get to sign up which could make this company a great affiliate partner if your website gets tons of traffic, or if you have tons of willing friends.
Digits Reviews: Is Digit Legit?
I have researched the Digits company for many hours and they are FDIC accredited, and are in good standing with the Better Business Bureau. This company will not scam you, and they won’t steal any of your hard-earned money if that is what you are asking. Now we mentioned earlier that this company used to offer their platform free of charge, but I am assuming due to high demand, someone in their company probably realized they had a gold mine themselves. They were thinking proactively, and that is smart thinking! The founder of Digits discovered a way to help the everyday person save money while making a little themselves. The thirty-six dollar annual fee doesn’t sit well with me at all, but if you think about it in the grand scheme of things, then most of us wouldn’t probably miss thirty-six dollars, and if you do, then you probably shouldn’t be using any of these services to begin with. You would just be better off putting money right into your bank and not touching it.
Additionally, I haven’t read one negative review on the internet about this company, or if it transfers too much from someone’s account, so you are totally safe using Digits, and I give you the thumbs up to try it out.
Acorns Versus Digits
The benefits of using Acorn over Digits is quite clear. Digits charges you thirty-six dollars a year for your money to sit and do absolutely nothing. Basically, Digits charges you to give them money, whereas Acorn charges you only a dollar a month, but they are actually investing your funds into a diversified portfolio. If you choose to use Acorns you will have an actual portfolio that has the ability to grow over time, but with digits, chances are you will lose money in the long run.
After all, anyone could stock pile cash away on their own right? In the case of Digits why would you want them to automatically take what they think is necessary, and then charge you for absolutely nothing. The one-hundred day free trial sounds nice, but their application really doesn’t help any of us save money in the real world. Digits is FDIC insured, but let me also tell you something else that I think is Wonky about this platform. After leaving over one hundred dollars in your Digits account for more than ninety days you will earn a whopping five cents from them. Five cents? This isn’t the 1920’s, and five cents won’t even get you a piece of candy from a vending machine anymore. Digits looked promising when I was first reviewing the company, but after I found out the truth behind the matter, I then realized this is a very poor choice when it comes to saving money. Acorns is a company that I would go with any day of the week, and I hope they can help you achieve your financial goals.
Can You Really Have A Meaningful Savings Amount From Apps That Put Change In Savings Or Invest Your Spare Change?
Again, the short answer is yes. However, if you are using the Acorns platform I would suggest you stay below five-thousand dollars, because if you end up investing over five thousand dollars with Acorn, then you will be charged at a flat 0.25% rate. On the other hand, Digits used to be a free platform which would have made it definitely worth using. However, that doesn’t mean you shouldn’t use either of these platforms, especially if you find yourself running through your money every month. The automation can help anyone achieve certain savings goals, but remember these platforms are businesses, and they are in the business of making money. My advice is to try either Acorns, or Digits for an entire year, and see which platform made you the most money, but also determine which platform costs less. Don’t get turned off by the annual fees, because I believe these could really help those who are really struggling to save.
Moreover, if this sounds like you, then also please don’t try to keep taking the money back out once it is stashed away in your account. If you have any intentions on doing this, then I suggest you might as well not even bother using any of the platforms, because you are already setting yourself up for failure. If you do have this problem, but are willing to change, then let me give you some sound advice that can help you get on the right path to saving some money.
First, install either of these applications on your mobile device. Next, set a goal for yourself. It doesn’t matter if your budget is tight, but it is important that we get the ball rolling and you at least have one goal. After you have set yourself a goal, then I want you to think about what would you do if you had the money here and now, what would you buy? Do you want to save up enough money for a down payment on a car, or perhaps just take your entire family out for dinner? Maybe you just want to treat yourself to a nice dinner? It doesn’t matter how big, or how small of an amount you want to save; however, you need to focus on keeping that money out of your hot little hands, and don’t let it burn a hole in your pocket. Humans are naturally materialistic beings, and we all want nice things, but sometimes it takes time and effort to acquire those nice things. You have to be willing to sacrifice compulsive buying behavior in order to achieve these said nice things. If you can resist the urge to compulsively withdraw from your savings account after Acorns, or Digits has deposited money, then it is a spectacular idea to try either of these out. If you read further down I will be determining which platform reigns supreme for achieving the best monetary gains just so you don’t have to!
Dobot: A Digits Alternative
The closest application around to replacing Digits is called Dobot. I want to make this clear that we verified this program is also FDIC insured, and it analyzes your spending habits just as Digits does, and then moves a safe amount of funds into your savings account. Generally speaking, this platform works in the very same way as Digits as well. First, you download the app, then you give the application your bank information so it can connect your account, and finally you set a target savings goal and the date you want to reach it. Dobot will then do the rest for you. If you choose Dobot over Digits it will give you five extra dollars just for signing up, and five extra bucks for every referral you give them. Not a bad little platform if I say so myself, and their monthly payment is $1.99. That is a dollar less than Digits which means that is a dollar more you would be saving if you chose this platform instead.
Tip Yourself: An Application with no Automation
Moving on, Tip yourself is another application that tries to help others like you and me, save money. Unlike Acorns, Digits, and Dobots, Tip Yourself lets you choose exactly how much you want to put in your savings. I really like this idea, but for those who like applications that can do this automatically, well this app is definitely not for you. However, I want all of you to know that this is the only application listed in this article that is totally free. On the Tip Yourself website they even post a snippet that says, “There shouldn’t be a cost to saving money. That is our position and we’re sticking to it”. That sounds like the founders of Tip Yourself were really in it to help people, and not in it to pad their own pockets. What do you think?
How do These Compare to Bank of America’s Keep the Change Platform?
Now that we have thoroughly discussed both Acorns, and Digits, Bank of America has a similar platform that works just like Acorns except without the micro investing. I personally like this platform offered by Bank of America, because it helps you save money without unnecessary fees, but if you don’t have an account with them, well you are just out of luck. So, it works like this, if you go out to dairy queen and purchase a hamburger for $4.50, then Bank of America will automatically transfer fifty cents, it always rounds up to the nearest dollar of course, right to your savings account. Pretty nifty, just like both applications do from your mobile device, except you don’t need a mobile app with bank of America. All you have to do is call them and sign up for the service. I believe this is an excellent service. In fact, I think it would be a great idea for all banks to have some kind of saving program like this. Again, if you compulsively buy items, or if you just happen to shop often, then this program will always make sure something is in your savings account.
However, we are at a cross roads once again as I mentioned in the sub header above, you still need to keep your sticky fingers out of your savings. Saving money like this can either be a good idea, or it can be a great idea, but it is up to you to see how well you can make use of the service itself. The big question I think many of you have right now is, “should I still use the mobile apps, or should I just use the Keep the Change service”? In all honesty, if I had to pick either using the applications and getting charged to save money, then I would use the program from Bank of America. I mean it isn’t rocket science people. Think about it like this, “let me put away two dollars, but give fifty cents away for free versus let me put away two dollars and keep two dollars”. Easy example, right? We all know what the better option is, and now you can open up an account online or by just calling, so really there is no excuse to using the Keep the Change platform.
Conclusion: What are the Best Apps to Save Money With?
I am not going to beat around the bush with this conclusion. If you want to try and save with micro investing I would suggest Acorns. Acorns is a trusted and reliable company who takes the hassle out of managing a stocks portfolio. However, remember my advice and don’t put a ton of money into this platform or else your earnings might get eaten up by their .025% annual fee. Furthermore, if you would rather just save money automatically after every purchase you make, then choose Dobots. Dobots is cheaper than Digits, and works virtually the same way. Saving your money will always take some effort, and besides using these automated applications you could also take the time and make a list of your total purchases versus your monthly budget, and try to cut spending somewhere. What I like to do is once my list is finished I take a look at what I could have done without for the previous month and try to make better attempts at not splurging on needless items. This is one of the hardest things you can do, but I believe if you did this in combination with Dobots or Acorns, then you could really build yourself a nice little return over time. Before I end this article, I didn’t mention Tip Yourself in the conclusion because most people want applications that do everything for them which would mean that is one less thing they have to worry about during their day. But, Tip Yourself is still an excellent platform for anyone wanting to save some dough, and I suggest you check them out after using some of the other platforms for a while to just be sure it isn’t something you are missing out on. After all, I do take their stance on saving money, and it shouldn’t cost anyone anything to save. I still take their initial stance, because it is not only how things should be, but think about how much you get taxed for everything else already. Can you really afford to spend more money while you are trying to save money? Just something to think about. Have a great day everyone!