enRICHed: volume 100
happy 100 issues, besties
Sunday October 13, 2024
Volume 100
Hey besties!
This week was the first official episode of season 2 of Networth & Chill featuring founder and CEO of Nguyen Coffee Supply, Sahra Nguyen. We sat down and talked about all things coffee, business and managing your finances when running a business. This season we are getting down to the nitty gritty of finances! I’m asking for NUMBERS! I want to know, how much did you start your business with? What do you spend on marketing? How much do you get paid? And Sahra was generous enough to answer all these questions (with the facts and figures to back it up) and so much more. If you ever wanted to know how a tiny lil bean from a fruit turns into coffee and ends up in your cup every morning or what it actually takes to launch a successful business, this is the episode for you.
Listen to this episode of Networth & Chill at any of the listening links HERE! Be sure to follow us on IG @networthandchillpod where we’ll be posting the best moments and exclusive behind the scenes of all things Networth & Chill!
As a reminder:
HYCU, pronounced haiku: how the news impacts you and your wallet, aka How You Can Use
The Prosperitea: think discount codes, non-boring finance articles, sales, and personal links from the week. The fun stuff 😉
We love your comments, but please remember to keep it positive! And don’t take investing advice from anyone who isn’t your registered financial advisor!
Now that you’re up to speed, let’s get you enRICHed.
Goodbye, Lead Pipes! 💧
You heard me right—your lead pipes are officially being dumped from the island. On Tuesday, President Joe Biden set a 10-year deadline for cities across the nation to replace their lead pipes, finalizing a real aggressive approach towards making drinking water safe for all Americans.
Even though they were technically outlawed in 1986, lead pipes are still delivering water to millions of homes and businesses in America, more or less because it would cost billions to replace them.
Of course, lead pipes have been proven time and time again to be horrible for our health, with lead spurring some of the country’s longest and most pressing water crises in Flint, Michigan, Portland, Oregon, and Memphis, Tennessee, among many, many other cities.
The new rule now requires water utilities across the country to replace an estimated 9.2 million lead service lines by 2034—the strongest overhaul in about three decades, according to the Associated Press.
HYCU; We’ll all benefit from the removal of lead in our water, but especially low-income and minority communities, where lead pipes largely remain. Here’s the pros: the rule places most of the burden on water utility companies to replace the pipes, which means they’ll have to eat most of the cost. The move is also estimated to protect as many as 900,000 infants per year from low birth rates. Now, the cons: because the onus is on the companies, many will plan to fight the rule. The rule also doesn’t require them to pay for the portions of lead lines on private property, including those inside homes. So for now, the cost and responsibility for in-house changes remain on homeowners, and those who may be lower-middle income may not be able to afford the necessary replacements. The good news? You have time to save up, since this is a decade-long plan. Health is always wealth!
Hurricane Milton Barrels Through 🚨
Hurricane Milton has made landfall in Florida, ripping out the roofs of stadiums, toppling building cranes, upending homes, and dumping more than 18 inches of rain onto St. Petersburg.
While the death count is still being tallied (as of Thursday afternoon, it was at least 12), over 3 million people in the state are currently without power, and 11 million are at risk of flooding.
Search and rescue missions are still underway, with crews still getting people out of debris. White House press secretary Karine Jean-Pierre said Thursday that the administration deployed 1,000 rescue personnel to Florida.
HYCU; Often, when natural disasters like these hit, both our infrastructure and governing bodies are not set up to respond well. The aftermath of Hurricane Katrina is still felt in New Orleans, and Florida has already experienced three hurricanes in this past year—Helene was literally last week. As climate change continues to spark even more freak weather events, it’s important that we remain ready to help each other in these moments. If you want to donate to relief efforts, check out this list of organizations getting food, water, clothes and other essentials like baby diapers to people in Florida. Taylor Swift also donated $5 million to the hurricane relief efforts. At her networth of $1.6B, that’s the equivalent of someone who has a networth of $50k donating about $156. I don’t say this to discount her good deed, it is certainly not on her (or any celeb) to fund aid that should be shouldered by the federal government, but rather just to give you a bit of context!
The 2025 Retiree Pay Raise Is Looking Skinny 😔
Retirees’ monthly payments will rise by about $50 to an estimated average of $1,976 starting next year, the Social Security Administration announced Thursday—which, yes, is about a 2.5% raise.
It’s a meager little raise, compared to the 8.7% raise for 2023 and 3.2% raise for 2024, but the declining inflation rates played a factor in why it’s so much smaller this year.
According to an analysis by the Senior Citizens League, even though the cost of living adjustment (COLA) is supposed to keep up with inflation, it missed the mark in eight of the last 15 adjustments.
HYCU; Many senior citizens have increasingly struggled to afford their living costs with their monthly payments, as groceries, apparel and things like restaurants have all been hit by that demon, inflation. That’s why I am constantly talking about the importance of putting away money into a retirement account—and until we can elect the right people into office who can handle this mess, it will remain important to make sure you’re saving for your future in an IRA (traditional or Roth variety) and/or employer sponsored retirement plan.
Commonly asked question: Reed asks, “Hi Vivian! My husband and I recently inherited some investments - I'm wondering if we should consider using a portion of it to pay off his car loan. Will the savings on the loan interest be greater than what that invested amount could bring in for us in the next few years? If we don't pay off the loan now, we're scheduled to pay it off in 2028.”
Hi Reed! When it comes to deciding whether to use an inheritance to pay off a car loan, it's all about the numbers game. Here's a breakdown:
Interest Rate Comparison:
Check the interest rate on the car loan versus the expected return on your investments. If the car loan has a higher interest rate than what the investments could earn, it might be financially savvy to pay off the loan.
Specifically, follow the 7 Percent Rule:
A handy rule of thumb is the 7 percent rule. If your debt's interest rate is above 7 percent, it's generally a good idea to pay it off before investing, as the cost of the debt outweighs the average return you might expect from investments.
Another consideration is High-Interest Debt:
If you have other high-interest debt (like credit cards), consider tackling that first. It's like putting out the biggest fire before dealing with the smaller ones.
When deciding whether to pay down a debt vs. invest, it’s all about balancing what you are spending on the loan’s interest vs. what your investments could bring you. No one has a crystal ball to be able to predict exactly how much you could earn investing, but do the math, and see what makes the most sense for your situation!
Want to be featured in our Question Bank section?
Rich Tip of the Week: Do I split the bill or pay for my friends?
Han Kang became the first South Korean writer to win the Nobel Prize in Literature!
They’re calling the dread of opening your inbox “email apnea.” I’ve never felt more seen.
The world’s first *checks notes* commercial space station has been unveiled.
SEE YOU IN THE COMMENTS BESTIES
Vivian, I’m sadden by your comment about the 5 million dollars Taylor Swift donated. There’s no need to put that into context, it’s not like everyone who makes 50k would even donate $156. Sad at best, I thought better of you.
That was a pretty cheap shot about Taylor Swift's donation. If you really want the correct context here it is: FEMA is underfunded because Republicans refuse to increase FEMA funding and have delayed approving federal budgets altogether. And the reps from FL who voted against FEMA funding are now claiming that FEMA isn’t doing enough. When your own representative in Congress votes against helping you in a crisis, then you know for sure that you have the wrong representation. House Speaker Mike Johnson will not reconvene Congress for additional disaster relief funds so they won't reconvene until after the election. FEMA isn't simply funded with a pot of money. FEMA is funded by congressional allocations to specific departments for specific purposes. It can't shift the money around without congressional approval.
Pro tip: Do your homework!