enRICHed: volume 103

pokémon go to the polls

Nov 03, 2024

Volume 103

Hey besties!

As we get older and think about putting our roots down or investing, the first place people often think to go is real estate. Buying a home can be a super smart investment, but especially in major cities, it often feels unachievable. With housing prices just going up and up and up, many young people feel like home ownership is completely out of reach for them. This is why I was so excited to sit down this week with the star of Atlanta real estate Glennda Baker on the latest episode of Networth and Chill! We take a deep dive into the current real estate market, how first time homebuyers can maximize their purchase and so much more. If you are scared of real estate or feel like buying a home isn’t possible in your lifetime THIS is the episode for you!

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.

Pokémon Go To The Polls 🗳🥳

It’s Election Day on Tuesday, and you know what that means—another administration, more changes and policies that will affect all our lives, and even more days of discourse. Both Kamala Harris and Donald Trump have offered their platforms for this country, and the third-party candidates have cast their bids as well.
Money is going to be at the forefront of this campaign, with issues such as cost of living, inflation, the job market and the housing crisis taking center stage for all candidates.
Let’s not also forget that several states are pushing important propositions on the ballots this year. New York’s Proposition 2 is attempting to give the Department of Sanitation more power to enforce garbage laws and clean the city streets; California’s Proposition 6 is proposing to close the legal loophole that allows prisoners to do forced indentured labor, also known as modern-day slavery. Several states, from Arizona to Colorado to Maryland, are attempting to enshrine some level of abortion rights into law. Yes, voting for a president is important, but we should also make sure we’re paying attention to everything else that’s on the table for this election.
HYCU; It’s incredibly important to do your research when it comes to casting your vote. Statements and promises are nice, but facts and plans are what will really get things done in this country. For all paid members of enRICHed, I’ll be sharing a fact sheet on what we know about both parties’ economic policies tomorrow, covering what they’ve said about high-income and middle class tax brackets, promises for wage workers and families, as well as their plans to address the housing crisis and cost of living. You can find your closest local polling place here, and for those who have friends or family who struggle with English, you can find translation materials here.

The Dilly-Dally Dollars ✈️💰

Airlines are now required to give customers automatic refunds for any significant delays, under a new Department of Transportation rule that went into effect this Wednesday.
Living through a flight delay will still be like pulling your own teeth out, but at least now you’re guaranteed to get your money back when an airline flops on you. You don’t even have to file paperwork—it’ll be automatic! In theory this should have always been the case, but in the past, you needed to contact the airline, wait on customer service, and they’d try to make you accept a voucher instead of your money back. Ick.
Now, a “significant change” means a 3+ hour delay for domestic flights, and a 6+ hour delay on international ones. If an airline changes a flight's departure or arrival airport, or adds a connection, that also counts.
HYCU; Plainly put, passengers will now get automatic refunds after a “significant change” as long as they don't accept alternative transportation or travel credits offered by the airline. The new rule benefits infrequent fliers in particular, who may be less familiar with their rights. The law is also designed to incentivize airlines to minimize disruptions, Department of Transportation Secretary Pete Buttigieg said Wednesday. Because airlines don’t want to give you your money back, it’s more likely that they’ll just keep your flight on time and get you to your destination efficiently. The new rule also covers other services, too, so make sure you check if it applies to you.
- BAGS: When bags aren't delivered within 12 hours of a domestic flight's arrival at its gate, passengers will get a refund for their checked bag fee. On international flights, bags that don't arrive within 15 to 30 hours, depending on a flight's length, are covered by the rule.
- PERKS: Airlines must also refund the costs of services customers paid for but then didn't receive on the flight, such as wifi, seat selection or in-flight entertainment
- DOWNGRADES: If a passenger is downgraded to a lower class of service, or to a plane that's less accommodating of passengers with disabilities, they are entitled to an automatic refund.

Inside The Housing Crisis 🏠

Millions of people across the U.S. live in low-cost housing that is falling into disrepair and becoming uninhabitable, in a new report from NPR. Residents nationwide have reported issues like black mold, leaking roofs, and even the ceilings separating from the walls.
It’s because these houses are maintained by a patchwork of repair programs at the federal, state, local and nonprofit levels, and all are largely underfunded. Many have yearslong waitlists on top of it all.
They are disproportionately lower-income and Black or Hispanic residents, and many are seniors on fixed incomes.
HYCU; The housing crisis is one of the top issues of Tuesday’s election and a problem that is deeply affecting most Americans. More people are attempting to find affordable housing options as income fails to keep up with the cost of living. If you are living in affordable housing, there’s a proposal in Congress attempting to scale up some statewide models that offer income-based grants and repair aid, so keep an eye on that, and make sure you are using the power of your vote to elect officials who will put the money where it matters most to you.

Commonly asked question: Britt asks, “Hi, Vivian! We have a lump sum of money that we would like to grow. We have an emergency fund set aside ICE and are currently saving for retirement (about 12-15%). This lump sum is all we have left and we want to make it count. We are now a one income family and no longer able to save. Should we save it, invest it into stocks, buy some real estate? Please advise! We have learned so much from you already and appreciate all of your wisdom! Thank you so much!!”

It's awesome that you've got your emergency fund sorted and are contributing to your retirement—you have the most important items down! Now, about that lump sum, let's break it down:

Diminishing Marginal Returns to Saving: If you as a family already have a healthy 6-12 month of living expenses on hand as an emergency fund, I wouldn’t necessarily overdo the saving by having too much more cash on hand above that. It could work harder for you in other ways, so assess if you have enough in your rainy day fund, as it currently stands.
Investing in Stocks: Stocks can be a great way to grow your money over time. But that’s exactly what I mean when I say it—stocks with an S at the end, and over time. YOLO-ing your money into one specific company’s stock is not a good idea as you’ll have too much exposure to one industry or that’s company’s risks. You’d be much better off investing in stockS via ETFs and mutual funds that track a broader index, a.k.a. allowing you to invest in a bunch of stuff by buying one thing. The other call out here is timing. Do not invest anything you think you’ll need within the next year or two. Investing is a long game, and you need to be prepared to lock that money up for a moment.
Real Estate: Buying property is like the slow dance of investing—it's a bigger commitment and less liquid than stocks (it takes longer to sell a house than to sell stocks). If you're considering buying a home to live in, that's one thing, but if you're looking to invest, and have limited funds, real estate might not be the first move. It can certainly be lucrative, but you’ll want to invest in more traditional avenues like the stock market via a tax advantaged individual retirement account or even an individual brokerage account first.
Asset Allocation: When picking investments, think about how much time and energy you want to spend. You can go full DIY, or if you're not into the nitty-gritty, consider a robo-advisor to help you choose the right investments.

Remember, investing is all about YOU, and it's important to pick something that fits your current life stage and financial goals. And don't forget, you're already doing a fab job by having that emergency fund and saving for retirement. Keep up the great work, and may your financial future be as bright as possible!

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Rich Tip of the Week: How to Fight your Insurance Company and WIN!
These Halloween costumes on TikTok are so funny and so perfect. Everyone crushed it!
The Wicked movie is finally coming out after years of marketing…who’s ready?
Megan Thee Stallion’s new documentary is out, and it’s so raw and beautiful.
Products that saved my life this week:
- This rechargeable hand warmer (my hands get cold y'all)
- These probiotic yogurt bites taste like candy (please tell me these are healthy lol)
- Kind of in a Vegemite phase right now (if you think this is disgusting, grow up)

SEE YOU IN THE COMMENTS BESTIES