Over Spending On RideShares?
Ride-sharing apps like Uber and Lyft make it easy to overspend. After all, since your payment information is already linked to the app, you never even see the money leaving your wallet.
Getting around major metropolitan areas can be hard on foot and at times unbearable using underground transportation. Ride sharing apps like Uber and Lyft thrive in areas with a highly concentrated population some people are spending over $100 a month to use them.
As one woman who spent $453 on Uber in a month puts it: “The half second it takes to press your thumb down on a smartphone screen leaves no time for regret.” And, she adds, “impulse-driven, one-press smartphone purchases are the easiest to lose track of.”
That disconnect is particularly seductive with apps like Uber. “As opposed to a cab where you would pay with cash or actually run your credit card and realize you spent $20 on it, with ride shares it’s like, ‘Here’s my ride! Hi, bye!’” Campbell said. “You don’t even send the money to them. It feels like it’s almost free.”
Do you know how much you spend on Uber and Lyft?
It doesn’t seem like much—spending, say, $20 for a ride home on Uber or Lyft after a long night out.
But like your morning coffee fix or that weekly trip to the salon, it can add up. (Really, really add up.)
For the average 20-something, the 25-year cost of those Uber rides is an eye-popping $323,190, according to a new analysis by investment platform Betterment. In other words, if you just skipped the Uber or Lyft ride and invested that money into getting your self a cars instead, you’d be well on your way to saving thousands of dollars.
The average American spends between 9% and 25% percent of their income on transportation every year, depending on where they live.
9% percent does not sound like a lot of money, but 9% percent of $30,000 is $2,700. With $2,700 you could buy a used car, or use that for the down payment for financing for the vehicle of you choice.
Take back control of your finances and apply for a auto loan today.