enRICHed: volume 116

sometimes you gotta crash out before you cash out

Feb 09, 2025

Volume 116

Hey besties!

It can be super challenging to translate personal finance lessons into pop culture, and while I’ve built an entire business in doing so, it can still be challenging to find new and exciting ways to make financial jargon actually accessible. That's why I was stoked to sit down with social media sensation and content creator Tefi Pessoa. Tefi, who's known for her hilarious TikTok breakdowns and candid conversations about everything from celebrity tea to personal growth, opened up about her journey navigating finances as a digital entrepreneur. We cover her experience as a Latina growing up in Miami and dive deep into how she's transformed her online presence into multiple income streams, sharing real talk about building generational wealth while staying true to her authentic self. You can listen to our conversation HERE or watch us chat HERE! New episodes of the podcast drop every single Wednesday so be sure to subscribe to my YouTube channel HERE or follow Networth and Chill wherever you get your podcasts!

Plus, keep up with the podcast on Instagram and TikTok!

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.

Financial Help Is…Not On The Way 😔🚨

If you’re stuck in the whirl of the Trump administration’s “flood the zone” strategy, here’s one tidbit that might have gotten swept under the rug: Scott Bessent, who was confirmed as Treasury secretary last week, was named acting director of the Consumer Financial Protection Bureau (CFPB), replacing Rohit Chopra, who was fired on Saturday.
Under Bessent, staff members were then instructed to immediately stop doing most of the bureau’s work, including a freeze on issuing and approving all new rules to protect consumer’s wallets, and suspending the effective dates of all final rules that have been issued but have not yet become effective.
CFPB has had several lawsuits underway before they got muzzled, including lawsuits against Capital One, Walmart, and payment apps like Zelle and Venmo, which would’ve helped consumers get financial compensation for the companies’ predatory actions.
Some of the rules set to go into effect that are now being suspended indefinitely include $5 overdraft fees (which was set to begin in October) and wiping medical debt from all credit reports (which would’ve started in March…so close).
HYCU; If you were hoping for some of these CFPB moves to offer debt relief or a bit of financial compensation, unfortunately, you’ll have to keep waiting. It’s horrible! The CFPB, as an agency, was designed to be the voice in government fighting for our individual wallets when a company tries to rob us blind with fees, surcharges, or whatever else. Measures like these would’ve positively impacted millions of Americans. If you care about the CFPB’s work, contact your local representatives and ask them to voice their support for putting the suspended CFPB measures back on track.

Trade War Taking Shots ⚔️💰

The ongoing trade war between the US and China is heating up after President Trump’s 10% tariff on Chinese goods went into effect on Tuesday, as it caused huge shockwaves among companies, consumers and middlemen alike.
For context: we all know by now that Trump has basically been trying to leverage huge tariffs on Chinese goods to promote domestic manufacturing and also just flex US power, but it means that now, both American and Chinese companies are getting caught in the middle.
Companies like Temu, Shein and Amazon’s competitor Haul, which sell trendy products at dirt-cheap prices from Chinese sellers, were reported to start raising their prices in response to the tariffs, sending a panic through the Temu warlocks and Shein warriors.
This also caused a disruption in the delivery of orders, after the USPS said they would ban all incoming parcels from China and Hong Kong, but then walked that announcement back a day later.
In response, China blacklisted a bunch of American companies like Calvin Klein and Tommy Hilfiger from the country, which is going to be a blow for both companies since they rely heavily on Chinese production and consumers.
This is the first time China has blacklisted an American consumer goods company—previously, it was only really defense companies who were deemed “unreliable entities,” so this is a pretty significant step of the trade war.
HYCU; This is going to send shockwaves through our whole shopping experience. Analysts say we’re probably going to see price hikes and potential delays in shipments from any company that has business in China. Fast fashion, shoes, kitchenware, furniture, auto parts, appliances and consumer electronics like laptops, tablets and cellphones are probably going to be hit the hardest in terms of price increases. So if you’re in the market for anything from a new pair of heels to a new oven, be aware that it will more than likely be more expensive than before.

It’s Getting Egg-streme 🥚🍳

Restaurants are scrambling for solutions as bird flu continues to rapidly spread and drive egg prices even more: this week, Waffle House announced it would be adding a 50¢ surcharge per egg to customers’ orders.
Customers are also getting egg-stra about it. One Waffle House employee said they’ve already been “cursed out several times” over the price hike, people are clearing out the shelves at Costco, and someone else stole 100,000 eggs (worth about $40,000) from a trailer in Pennsylvania. Republican Senator John Kennedy even said in a weird-ass rant on Fox this week, “I like omelets better than sex.” I guess people really love their eggs.
Egg prices have jumped nearly 40% in 2024, and the US Department of Agriculture expects them to rise even more this year. It’s having huge impacts, as institutions like Waffle House are highly dependent on eggs, selling 272 million per year.
HYCU; It’s unclear whether or not more restaurants will start upcharging for eggs or just stop serving them altogether, as there’s no indication that prices will go down anytime soon. As for the flu part of the equation, about 67 people (mostly people who work on chicken farms) have been infected, but scientists are closely monitoring if it can become airborne like COVID. Unfortunately, you’ll have to keep up with independent researchers like the WHO Avian Flu newsletter if you want to find out if and when it gets dangerous, since the Trump administration shut down the CDC’s weekly reports on bird flu studies.

Amy asks, “Hi all! I’m in need of some guidance. My husband and I are looking to purchase a second home in another state. We paid cash for our first home and have never held a mortgage. We will need to finance the second home. Is it best to take out a mortgage on the second home or take a loan against the first house to pay for the second house? If the recommendation is mortgage on the second home, does anyone have any companies they recommend? I honestly don’t know where to start! Thank you!”

Let’s dive into your situation because buying a second home is super exciting, but it can also feel a bit overwhelming.

Here’s how financing your second home typically works:

Mortgage on the Second Home: This is a common approach. You’d take out a mortgage specifically for the new property, which allows you to spread out the cost over many years. This could potentially free up some cash flow since you won’t be tying up your first home as collateral. Using a mortgage on the second home keeps your first home separate and protected
Home Equity Loan or HELOC on the First Home: This option lets you borrow against the equity you’ve built in your first home. It can be appealing because you might get a lower interest rate than a traditional mortgage, but it also puts your first home at risk if you can’t make the payments. Using your first home as collateral could lead to higher risk if your financial situation changes

This matters because your choice can impact your financial stability and the ability to manage payments on both properties. So I’d think about a few questions to help you decide which choice to make:

What are you planning on doing with each home?
Are you going to be living in either of them?
Is the other going to become a rental property?
How easy will it be to rent out one or either of the homes?
Would the rent you charge cover your monthly cash outflow to make the purchase?

Overall, the big thing to think about is your long-term plans. If you plan to keep the first home as a rental, a mortgage on the second home might be more beneficial. But if you’re looking to keep costs low, leveraging the equity in your first home could be a good strategy, especially if you know the second home will make sense as an investment property.

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