enRICHed: Volume 38

Written By Rich BFF

Can I Be Honest?

When we first started this newsletter all those months ago, I was using roman numerals because another newsletter that I follow used them and they looked cool (in my opinion). But the time has come, where I have determined that we are not the Super Bowl. If we are going to continue to be a part of your Sunday, we have to keep it simple and focus on the news. Thus - the digits.

You have other numbers in your inbox to worry about - like that monthly rent statement!! If you’re like us and paying rent in a big city feels like lighting money on fire - give Vivian’s podcast episode this week a listen. She sits down with BILT founder Ankur Jain and learns all about the credit card that you can use to pay rent without the fees! It’s actually possible, who knew :)

Everyone’s Talking OceanGate

  • The big news this week was about the Titan submersible that was lost in the Atlantic. Eventually the Coast Guard found debris signaling that the sub had imploded and all five passengers had died on impact.

  • There were a lot of hot takes on the Internet as people questioned why anyone would go on this type of trip knowing the dangers. But extreme tourism has been on the rise for those who can afford it.

  • What do you mean? Well, the OceanGate trip costs each passenger $250,000. A trip to the South Pole will run you $100,000. Trips to outer space can cost millions. The Everest summit is a “more attainable” $20 grand. All of these adventures are knowingly perilous, yet people continue to seek them out to say that accomplished the impossible.

  • HYCU; with the rise of post-pandemic travel, the planet’s wealthiest are looking to go where few have gone before. Experts believe that adventure tourism could reach over $1 trillion this year, as new technology is released and “people are increasingly prepared to pay small fortunes in pursuit of big, sometimes dangerous dreams.”

Why is the FTC suing Amazon?

  • There are a lot of memes about gyms not letting you cancel your membership, but apparently Amazon is getting sued for it. The Federal Trade Commission (FTC) is alleging that Amazon was deceiving customers to keep memberships even though they had expressed interest in cancelling.

  • The interfaces that Amazon uses are referred to as "dark patterns” which coerce customers into, in this case, automatically renewing memberships. The FTC report referred to the cancellation process as a labyrinth, which deterred customers from making it to the final cancellation screen.

  • HYCU; not understanding how many subscriptions you have, when they renew, and how much they cost is how a lot of these types of companies make their revenue. Amazon Prime has more than 200 million members, all of whom pay $139/year, whether they realize it or not. Regardless of if these members are using Prime services, Amazon is making cash - it might be a good idea to check out your own recurring charges and whether or not you want to keep them!

A Housing Shortage

  • A housing shortage in the US is creating bidding wars for those shopping. A Freddie Mac report stated that the country is short ~3.8 million for-rent and for-sale housing units. In May, there were only 1.4 million homes for sale, the fewest in any month since 2012.

  • What’s going on? A lot. Construction on new homes never recovered after it crashed during the pandemic. There isn’t enough labor to complete the existing construction projects. People need more space with WFH policies. And mortgage prices have gotten so high, most homeowners are staying put.

  • An analysis done by the National Association of Realtors shows that middle-income buyers are having the most difficult time. CNN goes into the numbers here - it is interesting to see the way they calculate everything.

  • HYCU; Redfin reported that on average, 37% of homes sold above listing price, which means the COVID bidding wars are still at play. For those of us looking to buy a home - this is important to keep an eye on. Do you keep paying rent or do you potentially overpay for a mortgage due to a lack of inventory? It seems we are stuck between a rock and a hard place.

Pick Your Partner Wisely

  • A few weeks back, Vivian talked about the importance of picking your life partner on her podcast. It’s one of the biggest decisions you will make in your life (should you decide to make it!) and a new Lending Tree report concurs.

  • The report shows that 23% of all couples are staying in their current relationships for financial dependency, With persistent inflation and gender-pay gaps, couples tend to do better financially than single people do. Finding housing is easier, splitting the cost for household items is easier, even traveling is easier! And if you’re the one making less in the relationship, you may see even more benefits.

  • HYCU; a dual-income household obviously makes things more affordable, but it should never be the primary reason you are in a relationship. This data point shows the importance of keeping your own money should you ever feel the need to get out. A yours/mine/ours account set up is just 1 way to combat ever feeling completely financially dependent on your partner - but there is no singular solution and we recommend doing research on what works best for you!

Swap don’t Shop

  • Clothing swaps are on the rise across the country, with younger generations trying to find more sustainable, affordable ways to refresh their closets.

  • The people coordinating these swaps do so for fun, yes - but also for great causes like providing maternity clothing or gender-affirming clothing to those in need.

  • The secondhand market is expected to reach $70 billion by 2027, with companies like ThredUp, The RealReal, and Poshmark leading the charge. The more local swaps are becoming popular too, as a means of creating community.

  • HYCU; with fast fashion on the rise, clothing swaps provide a great option to shop trends responsibly. A simple change in mindset can make a huge difference: when I am looking at buying something new, I now always look on Poshmark or the RealReal for similar or exact matches first. Intention is everything, and your wallet will thank you!

Rich BFF
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