Broke Millennial by Erin Lowry

Broke Millennial: Stop Scraping By And Get Your Financial Life Together by Erin Lowry is a personal finance book published in 2017.

Broke Millennial is a no-nonsense guide to adulting financially. Described by the author as “a safe space for you to learn about money with more than a dash of humor,” this book offers millennial readers an approachable way to take control of their finances.

For many in this generation, money wasn’t a dinnertime topic growing up. Whether due to parental discomfort, lack of financial literacy, or cultural taboos, a lot of us entered adulthood without knowing how to budget, invest, or even read a paycheck. If you’ve ever felt overwhelmed or unsure how to begin “getting it together,” Broke Millennial is a great place to start.

Enjoy!

Money Isn't the Worst! Seriously
Is Money a Tinder Date or Marriage Material?
Do You Have a Gold Star in Personal Finance?
Dealing with the Dreaded B-Word
Picking the Right Financial Products
Credit Reports and Scores: The Report Card for Life
Wait, I Shouldn't Just Pay the Minimum Due on My Credit Card?
I Can't Afford to Split This Dinner Bill Evenly! Navigating Finances and Friendship
Getting Financially Naked with Your Partner
Other Chapters Included

Money Isn’t the Worst! Seriously

Money is seen as stressful, confusing, and not to be discussed. This fear:
- Keeps you from trying to understand how money works
- Prevents taking risks to get ahead in your career
- Perpetuates living paycheck-to-paycheck
Money isn’t complicated and doesn’t require complex formulas

Is Money a Tinder Date or Marriage Material?

Money drives key choices: career, health, generosity
Avoiding money doesn’t protect you from financial pain
- If you don’t control money, it controls you
Your mindset drives financial behavior
- Shaped by upbringing, beliefs, emotions
- Family sets your early money mindset
- Identify your money hangups to make real change
Basic recommendations:
- Track cash flow
- Spend less than you earn
- Build credit, but don’t chase it through debt
- Manage student loans with strategy
- Avoid products with hidden fees
- Use compound interest
- Invest early – retirement isn’t gambling

Do You Have a Gold Star in Personal Finance?

Emergency Fund → 3-6 months of expenses in a basic savings account
- Savings ÷ Monthly Expenses = Months of Coverage
Debt-to-Income Ratio → under 36%, the lower the better
- Monthly Debt Payments ÷ Gross Monthly Income = DTI
Net Worth = Total Assets – Total Liabilities
- Assets = everything you own
- Liabilities = everything you owe
Author provides checklists to track progress and identify financial “gold star” status

Dealing with the Dreaded B-Word

Understand how much money is coming in and going out each month
Budgets put you in control of your money – you get to decide where it will be spent!
The Cash Diet
- Monthly Income – Bills = Spending Money
- Keep in cash to track spending visually
- Weekly check-ins to see how much is left
The Track-Every-Penny System
- Record every financial transaction for at least two weeks
- Categorize spending
- Analyze after to see if spending aligns with values
The Envelope System
- Assign amounts to specific spending categories (rent, groceries, gas)
- Do not borrow from one envelope to fund another
- Similar to the cash diet but with more category structure
Percentage Budgeting
- Divide income into categories: fixed costs, financial goals, flexible/wants
- Suggested split: 50% needs, 30% wants, 20% savings/debt payoff
Zero-Sum Budgeting
- Assign every dollar a specific job
- Your budget “zeros out” – no unassigned dollars

Picking the Right Financial Products

Don’t go on autopilot – do your own research instead of copying parents or friends
Basics:
- Make sure your bank is FDIC insured
- No fees for:
  - Checking or savings account maintenance
  - Monthly/annual fees
  - Overdraft protection
- Credit cards:
  - Don’t overspend
  - Pay the balance off every month
  - Avoid credit cards with high annual fees
- Savings accounts → aim for an interest rate of at least 0.75%

Credit Reports and Scores: The Report Card for Life

A credit report is used by landlords, employers, lenders, etc. to judge your financial responsibility
Why Credit Matters
- Good credit = better loan terms
- You’ll likely need to borrow money for a car, home, or education eventually
- Higher credit score = lower interest rates = more money saved
FICO Credit Score Range (300–850)
- 800+: Exceptional
- 750-799: Excellent
- 700-749: Good
- 640-699: Fair
- 580-639: Poor
- Below 580: Bad
Credit Score Factors (these are the only factors!
- Payment history – 35%
- Amounts owed / utilization – 30%
- Use as little of your available credit as possible
- Length of credit history – 15%
- Credit mix – 10%
- New credit – 10%
How to Build and Maintain Good Credit
- Make small monthly purchases on a credit card
- Pay off the balance on time and in full
- Keep credit utilization low (ideally under 30%)
- Repeat consistently
Get your free credit report annual from AnnualCreditReport.com

Wait, I Shouldn’t Just Pay the Minimum Due on My Credit Card?

Always pay off your total balance each month – not just the minimum
- Minimum payments keep you trapped in debt for years due to high interest rates
- Example: A $2,000 balance at 24% interest is $480
Credit card companies profit when you don’t pay in full
Their business model relies on you carrying a balance
- Don’t fall into the trap!

I Can’t Afford to Split This Dinner Bill Evenly! Navigating Finances and Friendship

Talking about money is taboo in many cultures
Admitting you don’t have enough or value things differently can feel awkward
Tactics to manage social money dynamics:
- Be honest and open about your situation
- Set a budget ahead of time (during wedding season or trips)
- Offer more affordable alternatives
- Learn when to say no – and be okay with it
- Stand up for yourself respectfully and clearly
- Understand your friendship dynamics around money
- Create a “script” — be ready to explain your values, even if it feels blunt
Dealing with mismatched financial styles in friendships:
- Express your perspective
- Share what you value and why you spend (or don’t) in certain areas
- Focus on clarity, not judgment – it’s about your boundaries, not their flaws

Getting Financially Naked with Your Partner

You’ll likely encounter debt in a relationship – if not yours, then your partner’s
- 42% of millennials have student loans
- Even more carry auto or mortgage loans
Why sharing financial information matters
- Builds trust and strengthens the relationship
- Hiding breeds distrust – money is the #1 cause of divorce
- Prevents future squabbles
Financially Naked 101
- Dates: who pays and how often?
- How fancy dates should be
- Gift expectations
- How you’ll split costs if moving in together
Financially Naked 201
- General habits (e.g., do you use credit or pay cash?)
- Deeper questions (e.g., do you have any loans or debts?)
- Avoid judgment – money is a vulnerable topic
- Don’t become financially entangled before having a real talk
Why it’s critical
- Becoming legally tied without being financially transparent is like unprotected sex — risky and potentially harmful
- Aligning goals helps you celebrate milestones together
- Consider getting help from a Certified Financial Planner if the conversation feels overwhelming
Openness now sets the tone for healthy financial communication in the future
If you want to be together, your goals for your future have to be aligned – and that includes financials

Other Chapters Included

Yikes, I Already Have Consumer Debt. What Now?
Student Loans: How to Handle Them
I’ve Got Debt, So Why Should I Care About Saving?
Paying Rent to Your ‘Rents: Living at Home After College
How to Negotiate Salary (or Anything Else) by Learning to Ask for What You Want
Investing: No, It Isn’t Gambling!
Retirement: Can It Ever Happen for Me?
I’m Not Rich Enough to Hire a Financial Planner
But My Broker Said I Can Afford This Much House
Epilogue: Now That You’re A Financial Badass, Keep It Up!

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