AD- this is a paid post in partnership with Chip
Wow, all of sudden we are in 2020- not only a new year but a brand new decade! No doubt lots of people will be making resolutions this year… go to the gym more often, drink more water, read more. We all know that we go into the new year with the best of intentions, but come January 31st, we are fed up with our resolutions and often slide back into old habits.
Instead of making an insignificant resolution this year, you could instead come up with a powerful money goal that you would like to achieve by the end of the year. Something that could be truly life changing. This could be finally putting enough money together to make that dream trip to the US, putting down a deposit on your first home, or finally paying off your credit card.
But what if you’ve always struggled to put aside any sum of money? You’re not the only one. Enter Chip…
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What is Chip and how can it help you?
Chip is an app that is accessed through your smart phone, and cleverly stashes money away in a separate account for you- automatically.
Chip has an auto-saving mechanism which means that it scans your transaction history using AI (artificial intelligence) technology, and then automatically moves the sum of money aside- removing any temptation to spend it.
You won’t even notice that the money has gone! Chip works out how much money you can afford to put aside by cleverly working out how much you are currently spending. It will never put aside too much money, and will never make you go into your overdraft.
This is a really helpful way to spend less because Chip works out all of the maths using its unique algorithm. It auto-saves what you can afford, and you end up with a lump sum of money.
How does the Chip app work?
Chip is completely free to use.
When you open an account with Chip, you will need to link your bank account. Chip is currently available in the UK only, and connects directly with the following banks: Halifax, Lloyds, Nationwide, Barclays, First Direct, Santander, TSB, Metro Bank and Co-operative Bank.
You can also connect using your bank card if you have an account with Monzo, Starling, Revolut, NatWest, HSBC, RBS and N26.
You just need to enter your personal details, a Chip account will be opened for you, and you can begin seeing the effects of the auto-saving magic!
How often will Chip auto-save for me?
Chip will auto-save once every four days. However, if Chip deems your bank balance to be too low, for example, it will not move any money for your and you will skip an auto-save.
You have full control- and can increase or decrease the amount that Chip sets aside for you. You can also ‘pause’ Chip within the app if you have a particularly ‘spendy’ month ahead.
How can Chip help you take charge of your finances in 2020?
150,000 people already use Chip to help them to reach their financial goals. That’s some pretty impressive commitment to a better financial future!
Chip has a goals function within the app which is SO helpful to help keep you on track and remind you of what money goals are seriously important to you. If you have some specific money goals for 2020- the goal function is going to help you visualise it.
All you do is set up a goal amount of money that you’d like to auto-save with Chip, alongside what that goal is with a photo, and Chip will calculate a date that you should reach that goal. Chip averages out the auto-savings that it has taken so far, and its clever algorithm comes up with a date.
The longer that you use Chip for, the more data the app has, and therefore the more accurate that date will be.
You can set up to 3 goals, and Chip recommends setting a long-term, medium-term, and a short-term goal. You then allocate a percentage of each auto-save to each of these goals.
For example, a house deposit might be your long-term goal, a dream holiday might be your medium-term goal, and the latest iPhone might be your short-term goal.
Happy New Year!
You might also enjoy: What is an emergency fund? And how can I save one?