As the United States begins to emerge from the COVID-19 pandemic, many Americans are making their summer plans if they haven’t done so already.
Pent-up demand will likely fuel increased spending for everything from “vaxications,” or the first vacation after someone is fully vaccinated. Farnoosh Torabi, a Metromile customer and personal finance expert, partnered with Metromile to explain how Americans can celebrate the start of a potential post-pandemic future without making costly financial mistakes.
Here are some of Farnoosh’s top wallet-friendly ways to save money and get away.
1. Assign a theme for your summer.
It’s important to pace yourself, Farnoosh says. Summer is a four-month experience, and it can be easy to get carried away with a big summer trip. She advises Americans to be intentional and purpose-driven.
An easy way is to assign a theme, such as relaxation or reconnection.
If your theme this summer is reconnection, you can avoid spending in any categories that don’t meet this goal, such as an expensive solo trip abroad, according to Farnoosh. Instead, you might opt for a budget-friendly backyard barbecue with your friends or take a local trip with family members you haven’t seen for a long time.
2. Revisit your budget.
Many of us consider and set budgets at the beginning of the year, but it’s important to revisit our budgets whenever our life shifts, according to Farnoosh.
During the pandemic, we may have picked up new habits that might stick going into the future. This is why it’s important to reassess where you are now and where you want to be this summer and beyond.
Consider setting a new budgetary plan. You could give up some subscriptions you signed up for in the last year or plan around any new expenses you might have to take on going forward.
3. Don’t let car costs get in the way.
Summer is always a popular time to hit the road, and summer trips, even on the road, can be pricey.
Farnoosh recently became a Metromile customer, a switch that she says saved her over $1,000 a year during the pandemic with pay-per-mile auto insurance. And she believes she will continue to drive a lot less: Farnoosh doesn’t expect to go back to a five-day-a-week commute — what she calls her “new normal.”
Farnoosh recommends Metromile to drivers who might be looking to take road trips this summer. She likes that any miles driven after 250 miles in a single calendar day are free (150 miles in New Jersey), which can keep auto insurance costs down.
The bottom line
Americans can take control of their finances for a blowout summer by switching to pay-as-you-go auto insurance. Because you pay a low monthly base rate and then a small cost for only the miles you drive, you could keep your insurance bill low and car costs in check.
As a multi-bestselling financial author, Contributing Editor to Time Magazine’s NextAdvisor, CNBC host and creator of the Webby-nominated podcast “So Money,” Farnoosh Torabi has become a favorite go-to money expert.
Farnoosh’s work and advice have been featured in The New York Times, The Wall Street Journal, Fortune, Forbes, Time, Marie Claire, Glamour, Redbook and USA Today. She appears on major news and television shows and series. Highlights include Netflix’s “Money, Explained,” NBC’s “Today Show,” CNN, MSNBC, “Good Morning America,” “Dr. Oz,” “The View” and “Live! With Kelly and Michael.”