enRICHed: Volume 3

Written By Rich BFF

Pretty Much Everything Costs More RN

We just said what everyone else is thinking - you aren’t the only one who feels like life is getting more expensive. Hopefully this week we can keep you in the loop on why this is happening and where you should look out for it. Also, there are a few things in there to help you save, because that’s what is most important when our obligatory spending is going up (groceries, energy, gas, rent) but we aren’t ready to take on a second gig just to afford happy hour.

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.

Heating Bills Keep On Climbing

  • You may have noticed on your bill already, but energy prices are going up and they aren’t stopping. A new report shows that families are expected to pay an average of 17% more to heat their homes this winter versus the last. This increase could be up to 34% if you heat with natural gas.

  • It’s all related - because of the high temps seen across the country this year, more people were cranking up the AC, which depleted natural gas reserves. The invasion in Ukraine has caused even more of a natural gas shortage, and as result, your energy bill is going to go way up. Europe is going to feel this even worse.

  • HYCU; a concept called “crowding out” happens when your budget stays the same, but you have to spend more on necessities - aka when your heating bill goes up, you have to pay it. This means you need to look at your budget for the winter, and see how this mandatory spending will impact your dream for a beach vacation.

Amazon Prime Day 2.0

  • Amazon has announced that they will be hosting a “Prime Early Access Sale” October 11th and 12th. While they aren’t saying it explicitly, people are calling it Prime Day 2.0

  • This is the first time Amazon has ever done a sale like this twice in 1 fiscal year. While this may seem like a huge perk for you, this decision is a selfish one. Amazon is facing slowing e-comm sales, rising inflation, and rising interest rates - they are hoping the extra sales will give them the boost they need.

  • HYCU; Amazon usually releases which items will be on sale ahead of time - so announcing the sale 3 weeks early means you can plan and potentially save on some major purchases. Also, when Amazon does big sales, we usually see sales at big box retailers like Best Buy, Target, Walmart, and Bed Bath & Beyond. Keep your ears open, but of course we’ll let you know if we hear anything 😉

Mortgage Rates Reach Highest in 15 Years

  • A report released by Freddie Mac on Thursday shows that the average mortgage rate for a 30-year mortgage has reached 6.7%. This average was 3.01% last year.

    • Wait, Freddie who? Freddie Mac, the nickname for the Federal Home Loan Mortgage Corporation, provides “liquidity, stability and affordability” to the U.S. housing market via a variety of tools at its disposal. You can read more here.

  • The low mortgage rates that people locked in last year are being referred to as golden handcuffs: even if they wanted to move, it would potentially mean increasing their mortgage by 3-4%.

  • HYCU; We seem to be stuck between a rock and hard place lately - rising rents make you want to move, but rising mortgage rates make that seemingly impossible? While we know there is a lot more to it, we did a TikTok this week on a mortgage hack you can use to lower your mortgage rate & subsequently your monthly payments. Check it out here!

After 3 Years, We are Back to the Office

  • The numbers compared to 2020 show that people are finally returning back to the office. It is expected that by January, NYC buildings will be at 54% capacity versus pre-pandemic levels.

  • There are obviously 3 camps, those who see the value in being in the office, those who see the value of working from home, and those who see the value in a combination of the two. While surveys have shown that people would rather quit than commute again, companies are trying to find the best model that works without totally wasting the office space they had acquired.

  • HYCU; Back to office comes with its own financial burdens. Commuting costs, childcare costs, cost of lunch and coffee, and the cost of your own time. If your company is asking you to return from fully remote work, your monthly budget might feel the pain alongside your heart when you hear that first alarm clock ring.

Hurricane Ian Slams Florida

  • Hurricane Ian hit Florida hard on Thursday, and it is being called a “500-year flood event.” The storm surges in some areas reached 18 feet and more than 2.6 million are out of power.

  • Unfortunately, it seems these types of catastrophic events are becoming the norm as climate change hits harder every year. Hurricane Ian is one of the costliest in history, but at the rate we are going, the economic impact of extreme weather events will only continue compounding in all parts of the world.

  • HYCU; but make it how you can help. The Red Cross is taking donations online, or you can text the word IAN to 90999 to make a $10 donation. Covenant House is also taking donations, they are based in Orlando and Ft. Lauderdale. World Central Kitchen is also taking donations, they are on the ground providing hot meals.

Rich BFF
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