enRICHed: Volume 19

Written By Rich BFF

新年快乐

Happy Lunar New Year BFFs! Today kicks off the 16 days of traditions and celebrations that come with ushering in a new lunar year, all culminating with the Lantern Festival on February 5th. 2023 is the year of the Rabbit - and while the story of the zodiac can vary, one of the traits known to the Rabbit is that of its brain. The Rabbit reminds us that it is important to approach everything in a smart, deliberate way. Work smarter, not harder. Sound familiar? Isn’t that what Vivian tries to get us to do every day with our own 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.

How to Get a Raise:

The Debt Ceiling

  • On Thursday, the US hit its debit limit of $31.4 trillion, which was set back in December 2021.

  • Janet Yellen stepped in to say that the Treasury will use “extraordinary cash management measures” to hold default off until early June. However, she warns that June could actually be too optimistic, and urged Congress to to raise the ceiling quickly.

  • HYCU; The U.S. has never defaulted on its debt. If the debt limit is not raised before summer, our government will not have the cash to repay bond holders, pay military and federal employees, or fulfill payments to Social Security, Medicare or Medicaid programs. While you may not be receiving these checks, if the US cannot pay - the fixed income markets, supported by the full faith and credit of the US government, will be in major trouble. This NPR article lays it all out pretty well if you want to learn more.

Spending More Than We Make

  • While consumer spending fell 4.3% month over month in December, an increasing number of Americans are spending more money than they are bringing in.

  • High inflationary prices are affecting everyone - for those earning less than $50K, 28% said their expenses were more than their earnings (up from 21% last year), for those earning more than $100K, 9% said the same (up from 7% last year).

  • HYCU; if your paycheck isn’t keeping pace with higher prices, and your pandemic padding is starting to dwindle, it might be time for a budget. Viv has a great explanation of how to build one that works for you and your lifestyle here in this video.

The Gender Takeaway from Davos

The Fake Meat Saga

  • Beyond Meat hit the market in 2009, promising a more environmentally conscious option to tradition animal proteins. Securing partnerships with some of the biggest fast food chains in the world, fake meat seemed to be on pace with alt-milk. The founders raised millions of dollars before making a single sale, and since then, they have kind of flopped.

  • Vegans and vegetarians were the largest supporters of the “fake meat” but even they have pulled back, fearing what types of chemicals or unnatural ingredients may be in the burger patties that mimic real meat. In 2020 50% of Americans thought faux meats were healthy; that number has recently dropped to 38%.

  • HYCU; disrupting an industry entrenched in the entire American political and economic system was a huge promise, but disruptors are the companies that venture capitalists love. Beyond and Impossible ultimately couldn’t sell consumers on a product that isn’t healthier or cheaper, and are now losing to beans, lentils, and real animal meat.

Rich BFF
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