enRICHed: Volume 20
Bingo!
While we absolutely jumped on the vision board trend this year, we came across another way to make 2023 resolutions fun. We have no idea who actually came up with this idea originally, but people on TikTok are gamifying their goals for the year by putting them on a homemade bingo card. Every time they hit a goal, they cross it off, with the hope to get bingo as many times as possible before the end of the year. It is such a light hearted way to manifest a few big, seemingly unrealistic dreams and it kicks that competitive energy into overdrive. Who doesn’t love screaming BINGO, especially when it means that you’ve made 5 big things happen for yourself. Would you try this? Let us know what you think!
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.
Car Repossessions
In December, loan delinquencies on car loans jumped to the highest rate in 15 years.
Cox Automotive reported that loans delinquent by more than 2 months are up 26.7% since last year. The data is showing that the people who may purchased cars during the pandemic cannot currently make the payments, as auto loan rates are currently at a 20 year high.
HYCU; the data reported by Zero Hedge shows that Americans are using more debt than ever to make large purchases, particularly cars. The average monthly payment is up 26% since 2019, with 1 in every 6 new car buyers spending more than 1K monthly. So while people could make these payments previously, everything has gotten more expensive and car payments are falling to the wayside.
A Pay Cut for the CEO
Goldman Sachs has been doing some pretty huge layoffs lately alongside many other companies. But another thing it announced, was that David Solomon would be taking a 29% pay cut.
Apple and Google’s CEOs will follow suit, taking pay cuts in 2023. Mind you that Tim Cook will still be making $49 million after a 40% cut.
On a similar note, companies like Zapier have been moving workers onto different teams rather than laying them off. Another move that has been lauded on news platforms and LinkedIn.
HYCU; Top CEOs make 399 times more than the average worker, and companies who aren’t evaluating executive compensation packages before making huge layoffs are getting the side eye. While GS still had to do layoffs (not Apple though), at least its CEO was taking some of the blow.
New Regulations for CBD
CBD products have been popping up everywhere, from oils, gummies and lotions to bath bombs, soda and peanut butter. Now the FDA is stepping in, with the assistance of Congress, to provide additional oversight.
After conducting research, the FDA has concluded that while they will honor a growing desire for these types of products, there needs to be a “regulatory pathway” due to safety concerns for long term users of CBD.
The regulations will likely include things like new labels, a minimum purchase age, and limiting animal exposure so as to not contaminate meat and dairy products.
HYCU; the CBD market is estimated to be worth $4.6 billion, with huge growth expectations. It will be interesting to see if new regulations stunt what has thus far been exponential.
VCs take on Fertility
Fertility services are in high demand, so money for fertility startups is also. In 2022, fertility tech startups raised over $800 million! That number is up from $305 million 5 years ago.
Problems being solved by these companies include the cost of infertility treatments, inequities that impact LGBTQ people, POC and low-income families, and access to treatments in general.
HYCU; 1 in 8 women experience infertility in their lifetime, and while that conversation has become more public in recent years, the technology to support it has yet to catch up. While there is still work to ensure that the money is equitably supporting all people capable of becoming pregnant, these companies are doing important work to make the process more transparent and more economically feasible.
Your Tax Refund
Tax season has begun, and the IRS is warning that your refund is not going to look like it did last year. While the average tax refund was up 7.5% in 2022 from 2021, that number is expected to revert back.
The enhanced child tax credit, the child and dependent card credit, and the earned income tax credit are all either lower or gone completely.
However, the 1099-k reporting requirements, which we talked about a few weeks ago, is being postponed. Hopefully this saves you a few headaches if you are a small business owner!
HYCU; this is good to know, as a lot of people use their tax return to fund debt payments or something a little more exciting like an extra vacation. If you’re expecting your check to look like last year’s, make sure to temper expectations accordingly.
Rich Tip of the Week: 4 Money Mistakes Made by Your Rich BFF (video link w/ sound)
How to run a large family and a small business at the same time
A long read about why everything is behind plexiglass at your local CVS, stolen goods, and a growing resale market
Should you go above and beyond for your company in a recession? Business Insider
People are selling WATER from Splash Mountain?!?!
