Episode Overview

In this episode of Get A Grip On Your Money, financial planner and journalist Damon Carr tackles the high costs of ride-hailing and how everyday transportation choices can quietly drain your bank account. Using a recent analysis from his personal finance column, Damon drives home the message that small daily expenses—like relying on Uber or Lyft—add up dramatically over the course of a year. He explores smarter alternatives such as carpooling, public transit, and even revisiting the benefits of owning a car, all geared toward helping listeners make more financially savvy decisions.

Key Discussion Points and Insights

The Shocking Math of Daily Ride-Hailing

• $19 per day adds up fast: Damon opens by crunching the numbers on everyday Uber/Lyft use.
  • Quote [00:00]: “How to waste $6,900 per year. Pay $19 a day for Uber or Lyft instead of carpooling.”
    • Damon underscores that what seems like a manageable daily expense can escalate to nearly $7,000 over a year—enough for a vacation, chunk of debt repayment, or investing in a reliable used car.

Behavioral Finance and 'Death by a Thousand Cuts'

• Damon reminds listeners that daily habitual spending is often overlooked:
  • "We rationalize it because $19 doesn’t feel like a lot in the moment, but you multiply that by 365 days and it’s almost seven grand out of your wallet." [01:35]
  • He connects this to the broader concept of “death by a thousand cuts,” where small recurring costs undermine long-term financial goals.

Why People Rely on Ride-Hailing

• Damon explores common reasons people stick with Uber/Lyft despite the costs:
  • Convenience
  • Perceived lack of alternatives
  • Misconceptions about the real cost of car ownership and insurance

Alternatives That Save Money

• A detailed breakdown of smart transportation strategies:
  • Carpooling: Free or low-cost, especially with colleagues or neighbors. Damon encourages listeners to revisit old habits: "Remember when carpooling just meant riding to work with your buddy? It still works, and it’s still free.” [06:12]
  • Public transportation: Often underutilized, but can save thousands a year.
  • Used car ownership: Damon does a quick cost comparison, noting that used car payments, insurance, gas, and maintenance can beat $6,900 a year—especially if you buy wisely.
  • Occasional Uber/Lyft use: Consider these as “treats” or for true emergencies, not a daily default.

Emotional Barriers and Social Pressures

• Damon discusses the stigma and “FOMO” (fear of missing out) around driving an older car, carpooling, or taking the bus:
  • “If you’re worried about what people think about your ride, just remember: No one is paying your bills but you.” [13:25]

Memorable Quotes

• Damon Carr:
  • “How to waste $6,900 per year. Pay $19 a day for Uber or Lyft instead of carpooling.” [00:00]
  • “We rationalize it because $19 doesn’t feel like a lot in the moment, but you multiply that by 365 days and it’s almost seven grand out of your wallet.” [01:35]
  • “Remember when carpooling just meant riding to work with your buddy? It still works, and it’s still free.” [06:12]
  • “If you’re worried about what people think about your ride, just remember: No one is paying your bills but you.” [13:25]

Notable Segments and Timestamps

• Opening and cost breakdown: [00:00–02:00]
• Discussion on behavioral psychology & spending blindness: [02:00–05:00]
• Analysis of alternatives (carpooling, public transit, car ownership): [05:00–10:00]
• Overcoming social/emotional barriers to saving money: [10:00–14:00]
• Practical tips for switching from ride-hailing to smarter options: [14:00–16:00]

Takeaways

• Relying on daily ride-hailing can cost nearly $7,000 a year—money that could be better spent elsewhere.
• There are both practical and psychological reasons people overspend on transportation, but with a little effort, most can dramatically reduce these costs.
• Damon encourages listeners to evaluate their habits, try alternatives, and use Uber/Lyft intentionally, not reflexively.

This episode is essential listening for anyone who’s ever justified an “it’s only $20” ride or wants to reclaim control over everyday spending leaks. Damon’s candid tone and relatable advice make it both actionable and empowering.