enRICHed: Volume 2

Written By Rich BFF

The Goal is Confidence

We posted a TikTok this week in response to a comment saying, among other things, “never trust asians” and explained all of the ways that was not only hurtful, but also incorrect. The emails we have received over the course of this past week in response to Volume I of enRICHed have stressed the importance of the space we have created - allowing anyone to enter, no matter their background, to improve both their financial literacy and understanding of how the news affects them. The goal is and always will be confidence in yourself and, of course, your finances.

A few administrative reminders below:

  • HYCU, pronounced ‘haiku’: how the news impacts you and your wallet, aka How You Can Use

  • Spilling the Prosperitea 🫖 : our hot tips for you on all things money. Think discount codes, hacks, non-boring finance articles, sales, etc. 

Now that you’re up to speed, let’s get you enRICHed.

Hurricane Fiona hits Puerto Rico and the Dominican Republic

  • Last Sunday, Hurricane Fiona hit both Puerto Rico and the DR, dumping more than 2 feet of rain that resulted in flooding and mudslides. More than 3.1 million people lost power, and hundreds were stranded due to home damages.

  • Puerto Rico’s energy grid is run by a private company, LUMA, which has faced criticism for not only poor performance, but also rising energy prices. We did a TikTok this week explaining the details, but you can also read Vox’s article that goes way more in depth.

  • HYCU; These storms can grind entire islands’ economies to a halt for days after they hit, but the recovery period over the following months is when the economic impact can be devastating. If you would like to help, American Red Cross and World Central Kitchen are taking donations, and The Cut put together a round up of other organizations that are putting together aid.

Spotify Enters the Audiobooks Space

  • Spotify has officially launched audiobooks in its app, adding to its ever-growing library of music and podcasts.

  • The new Global Head of Audiobooks and Gated Content explained that Spotify’s fluid pricing model, pricing each book individually based on a variety of different factors, will be its key competitive advantage going up against giants like Amazon and Apple. 

  • HYCU; The audiobook market is growing 20% YoY, so of course Spotify is entering the ring. If you’re a fan of a specific up-and-coming author, you may find that Spotify is offering his or her books for cheaper than other platforms. Sure it adds another step to check, but if you are a frequent consumer of audiobooks, Spotify’s pricing model could save you a lot in the long run.

Changes at FedEx will Impact Your Delivery Prices 

  • FedEx reported on their first quarter financials this week, and their outlook for the rest of the fiscal year was not good.

  • Because of a slowing demand for physical goods alongside a worsening economy, FedEx is rolling out a handful of cost-cutting initiatives, including reducing frequency of flights and Sunday services. Their CEO’s comments sent a shock through the stock market, and the FedEx stock fell by 21%.

  • HYCU; FedEx will also be increasing rates by an average of 6.9% for its delivery services. Not only will you be receiving your packages later, you’ll also be paying more to get them. Will we see free returns become a thing of the past as this trickles back to digitally native brands? Maybe it’s time to start shopping in person…

Student Loan Forgiveness - Explained

  • In August, President Biden rolled out the Student Loan Forgiveness Policy, a three part plan to relieve Americans of the overwhelming and seemingly endless burden of their student loans.

  • On the new Your Rich BFF Youtube channel, we explain everything you need to know about eligibility and navigating the application process.

  • HYCU; If you make less than $125K, you may be eligible to apply for loan forgiveness in early October 2022. You can sign up here to get notified from the Office of Student Aid as soon as the application is available.

The “Buy Now, Pay Later” Phenomenon

  • A report from the Consumer Financial Protection Bureau (CFPB) was released this week, focusing on the Buy Now Pay Later (BNPL) industry, which grew by 970% from 2019 to 2021.

  • The concept of loans when it comes to cars and homes is not new. However, BNPL allows consumers to split discretionary purchases into smaller, interest-free payments over time. Companies like Klarna and Afterpay are facilitating this service across all types of spending, even weddings!

  • HYCU; The CFPB study found that a subset of users were at risk of spending more than what they otherwise would as a result of the BNPL structure. Before you use these types of services, ask yourself if you are making the financially responsible decision, and if you can make the payments on time.

Rich BFF
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