Back in March of this year, I heard about Digit and signed up for it. For those of you who are new to Digit, it squirrels away money from a savings or checking account. It analyzes your account balance, spending, upcoming income, and upcoming bills to figure out how much it can safely move.
Here's what the account looks like now:
That's not a bad little emergency fund, right? My Digit account actually has even more money in it. If you sign up through this referral link you can actually earn $5 by referring other people. I've collected quite a few of those $5 bonuses. It almost sells itself. No one is against saving money the easy way.
The other day it occurred to me that Digit could be a new kind of Christmas Club. If you aren't familiar with Christmas Clubs, I won't hold it against you. I think they were a little before my time. Here's how Wikipedia describes them:
"The Christmas club is a savings program that was first offered by various banks in the United States during the Great Depression. The concept is that bank customers deposit a set amount of money each week into a special savings account, and receive the money back at the end of the year for Christmas shopping."
I don't know how much money you are you going to spend this Christmas, but I read the average is around $880. I'm sure everyone's Digit savings are going to vary over time, but mine seem to be around $200 a month. That means in about 4.5 months, I'd have enough savings to fund the average Christmas budget. What I like most about this is that you set it up once and you never need to do anything. For the most part, I don't notice what's in my Digit account unless I'm writing an article like this one.
So my recommendation is to sign up for Digit now so you'll be prepared for next Christmas. You might even be able to snag some free money yourself by referring friends and family.
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