This will help you realise why you might have money issues, and what you specifically need to work on. This is a great book for millennials trying to figure out how to manage money, now and for the future, from a peer who walks the talk. It’s clear that Erin understands that nothing beats an encouraging word when we need it most. The stories she’s included along the way – both from her experience and from those of friends and family members – offer context and a good dose of “you can do it too”. Rather than waiting until the end of the month to see whether there’s anything left over from your salary, save a portion of it right away once your salary is credited.

• According to conventional financial expertise, your emergency fund should cover six months of your living costs.
• These benchmarks provide a motivational framework for your financial journey.
• Lowry, a millennial herself, started with her popular blog of the same name.
• Lowry’s background includes growing up in Asia, but she now resides in New York City.
• That’s really solid argument to avoid using credit cards entirely.

The good news is that it’s not your fault and that you don’t have to stay broke forever. And it all begins with just a few simple changes to your outlook and habits. While there were elements I disagreed with, each instance of this was merely one example presented alongside other options and insights. Therefore objection to some of these proposals is practically the point.

How can I improve my credit score according to Broke Millennial?

Erin Lowry is a personal finance expert who has been living and breathing money management since she was a child. Here, Lowry covers the basics of budgeting, offering various methods to track spending and save effectively. She introduces the concept of “paying yourself first” as a cornerstone of financial health. I’ve been really into personal finance lately (See my review of The Simple Path to Wealth).

A conversational, if at times simple, read

Her advice resonates particularly with millennials facing urban living costs, helping them move from instability to control. Broke Millennial receives mixed reviews, with an average rating of 3.89 out of 5. Many readers find it informative and accessible for young adults new to personal finance.

Internet-only banks can afford to offer higher APYs because they don’t have the overhead costs of traditional brick-and-mortar banks. Ensure your bank has FDIC insurance to protect your deposits up to $250,000. This is a non-negotiable requirement for any financial institution you entrust with your money.

• That’s already difficult even in the best of circumstances, so it makes sense to supplement your emergency reserves by additional few months of living costs.
• But putting it into practice is actually easier said than done.
• The first alternative is unpleasant; after all, no one likes to utilise their emergency money.
• Complete with easy-to-use yet powerful advice, this book will help you quit barely getting by and begin to prosper both personally and financially.

But the author says that it is not the end of the road for Credit cards though. Because obsessed activity isn’t reasonable, there’s nearly always broke millennial review a deeper issue at work. So, the only way to alter your habits is to discover why you overindulge in those habits. I have to be honest, the advice from Broke Millennial seems very basic. These are pretty introductory-level financial tips and, although it mentions financial freedom, they won’t really get you there. At best these lessons can keep you from staying broke, but they certainly aren’t going to make you rich.

The aim is to record every single transaction on a spread sheet, with columns for the date, the item purchased, and the total amount – all the way down to the last paisa. It may appear exaggerated, but it’s an excellent alternative if you’re the type of person who ponders where all of your money went at the end of the month. According to research, when you pay with cash rather than a card, you spend less. When you pay cash, you avoid credit card fees, interest payments, and that awful monthly bill. However, in the present era of UPI and digital transactions, we may not be completely in line with this second portion, but the first argument remains relevant. When we pay with cash rather than a card or a digital transfer of money, we tend to spend less.

Building Your Money Machine

Putting down less than 20% can make homeownership more accessible, but it also comes with risks like higher interest rates and the need to pay private mortgage insurance (PMI). Exchange years of work in public service for discharged loans. Common programs include Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness. You’re more likely to fess up that you have a guilty pleasure Nickelback playlist on Spotify than admit to carrying consumer debt. Evaluating your results will help you navigate the following chapters so you know where you should improve your knowledge.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. I felt called to check out a few financial books as of recent and this one has been on my long standing TBR. I loved this book and how truly easy to digest it made all things finance. This is the minimum amount you can pay without failing, and it implies that the remainder of your debt will be carried over to the next month. Credit cards are a convenient method to spend your money. You not only get disoriented about your expenditures, but at the end of each month you are left with a mountain of bills and hefty interest charges.

Key Themes and Concepts

From building a solid emergency fund to starting your investment journey, the book provides a roadmap for financial success that can be tailored to individual circumstances. This chapter demystifies investing for beginners, covering basics like index funds and retirement accounts, and encourages readers to start investing early. Lowry kicks off by addressing the emotional aspects of money, encouraging readers to examine their financial mindset. She emphasizes that understanding your relationship with money is the first step towards financial success.

Overview of “Broke Millennial” by Erin Lowry

She later discusses how she graduated from college without any student debt, thanks to a scholarship and the generosity of her parents. Given the significant impact of student loans on millennials, this chapter offers valuable insights into managing and repaying student debt effectively. The critical reception of “Broke Millennial” has been largely positive, with readers praising its down-to-earth approach and practicality. Many have highlighted the book’s ability to demystify financial concepts, making them accessible to a generation that often feels alienated by traditional financial advice. Reader feedback often emphasizes the book’s relatability and the way Lowry’s experiences mirror their own, fostering a sense of connection and understanding. However, keep in mind that your percentages must be fair.

This allows you to keep track of your spending and eliminates the need to put a month’s worth of cash into your cupboard. But it’s not that difficult when you know how to enhance your relationship with money without using complicated calculations. It just takes a series of modest moves that add up to one major shift. Getting a grasp on your finances might be the difference between a fulfilled life and a frustrated existence. If you don’t handle your money effectively, you can find yourself working to pay the rent but unable to have the life you truly want. It may even mean foregoing every thrilling adventure on your bucket list, or splurging on them now, only to find yourself surviving paycheck to paycheck for the remainder of your life.

You may alter them to your own scenario and re-evaluate them when things change. It all started to come together when you realised how your parents felt about money. Perhaps they were upfront about the family’s finances, or maybe they viewed money as a taboo and rarely discussed it. Whatever your upbringing was like, there’s a strong chance you can trace your present money issues back to those formative years.

Personal finance can feel intimidating, yet it’s vital to everyday life. Navigating rent, student loans, and daily expenses often leaves us overwhelmed or stuck in poor spending habits. Many people avoid honest conversations about finances, but ignoring your money can lead to unpredictable consequences.

Master Your Money Mindset for Financial Empowerment

If you are debt-free or have manageable debt, you should be able to follow this advice and save enough to cover six months of basic living expenses. Simply sum up your monthly expenses for necessities like rent, bills, and groceries and multiply by six to reach the goal you want to attain. If you’re a millennial living in a big city, this percentage allocation may seem a little insane. This is because, in a major city, even before you include utilities, loan repayments, or metro train tickets, your rent usually consumes half of your salary. That is not to say that budgeting by percentages is useless. It just means that you must progress gently towards the ideal goal.