SAN FRANCISCO, May 10, 2016 /PRNewswire/ -- It's graduation season and a fresh wave of millennials are leaving their college campuses and entering the job market. According to a survey by the investment app Acorns, nearly half of millennials say they are "treading water" financially. Burdened with student debt and living expenses, millennials are struggling to save money. Erin Lowry, well-known personal finance blogger and founder of "Broke Millennial," has proclaimed student loans 'the millennial curse' and created her blog to increase financial literacy within the millennial generation. Lowry, known for her smart yet attainable financial advice to thousands of broke millennials, shares some tips on taking control of finances after graduation.
"Budgeting may be the financial 'b-word,' but it's adulting 101. Getting in the habit of saving and budgeting now will make money feel less daunting," explains Lowry. "Your future self will thank you."
Here, Lowry offers three tips to empower millennials to exercise power over their personal finances after graduation and start to save:
- Obey the 50% rule: Create a goal to keep fixed expenses (such as loans, groceries, and parking) at less than 50% of your monthly take home pay.
- Reassess the costs holding you back from achieving the 50% goal: Take a look at your spending and see where you can cut back. If you are taking public transportation to work, you should reassess your parking and car insurance costs. Other expenses to consider reevaluating include rent (snag a roommate) and food (opt to eat in versus eating at a restaurant).
- Take advantage of urban saving opportunities: Living in the city can be expensive. However, urban areas often provide opportunities to save money, such as commuting via alternative transportation and shopping at the local farmers' market.
One example of an area where millennials can cut costs is, surprisingly, car insurance. Many millennial drivers own a car because they like the freedom and empowerment of owning a car. However, they drive less than the average driver because they travel via public transportation, rely on ride-share options or maybe even bike, walk or telecommute to work. The bummer? They are still paying high insurance premiums—a common problem in the US where 65% of people are actually overpaying for car insurance based on the miles they drive. Metromile, a pay-per-mile car insurance provider, is putting the control back in the customer's hands and making it easier to save on car expenses. Not only does Metromile save customers an average of $500 each year, the Metromile app helps drivers save even more by tracking monthly mileage costs and avoiding parking tickets in select cities with street sweeping notifications.
"Metromile allows you to only pay for the miles you drive, so it's perfect for low-mileage millennials who use their car primarily for weekly errands and occasional getaways," Lowry says. "The savings from paying-per-mile could fund an emergency savings account, an extra student loan payment or the vacation you've been dreaming about since you entered the workforce."
Metromile is revolutionizing car insurance through technology with its pay-per-mile insurance model. By offering affordable car insurance, transparent pricing based on the miles you actually drive, data to optimize how you use your car, and instant access to detailed vehicle diagnostics via the driving app, Metromile is transforming car insurance — and car ownership — to be more intelligent, seamless, and accessible than ever before. Metromile is expanding across the US, and currently empowering drivers in California, Illinois, Oregon, New Jersey, Pennsylvania, Virginia and Washington. For more information, visit metromile.com.
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