enRICHed: volume 124
recession indicator
Sunday April 06, 2025
Volume 124
Hey besties!
Recession is the word on everyone’s mind this week, so let’s get serious for a sec. I’m willing to bet that over the last few months, you’ve been served an aggressive amount of content surrounding an impending recession, but without any tangible solutions for how to prepare. This is stuff that touches all of us, whether it be the cost of living going up, or fear about the stock market taking a big tumble. But unlike a lot of “finance gurus,” my #1 priority is always to bring you the info you need to make smart financial decisions. If you’re wanting to learn more about how to get “recession-ready,” check out the latest episode of the podcast! I talk about what a recession really means, what industries will be impacted the most, how much you should be saving to prepare, and much more! Not only do I want my besties to survive the recession, but I want you to thrive and walk away rich! 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.
Liberation Day 🤨💰
Yes, President Donald Trump is not letting us forget about these tariffs, after he hard-launched expansive new levies in a major escalation of his trade war this week, referring to the historic move as a “declaration of economic independence.”
These new tariffs will put a 10% duty on all imports into the United States starting Saturday at 12:01 am, plus higher tariffs on goods from about 60 countries or trading blocs, including everyone from China, Taiwan and the European Union to places like Cambodia, Madagascar and Sri Lanka.
Mind you, there are already existing tariffs in place, but the implementation of those will be determined by Trump: for instance, the 25% tariff on goods from Mexico and Canada that don’t comply with the United States-Mexico-Canada Agreement will remain in place until Trump determines that issues around fentanyl and illegal immigration have been resolved, whatever TF that means.
Industries are getting spun around and waterboarded, basically: this is about to hit everyone from the auto industry, Big Pharma, tech, and every kind of consumer good brand—Nike (shoes), American Eagle (clothes), Wayfair (home goods), Hasbro (toys) and more are all likely to be affected.
HYCU; Basically, this move was intended to address unfair trade practices, and consumers are probably going to be the ones paying for it—especially low-income Americans, who will feel the biggest bite taken out of their budget. Most economists agree that this is likely to send prices higher for American consumers overall and weaken economic growth. The stock market has already been plunging in response as fears of a Great Recession become even more real, so it’s likely that you’ll be seeing your investments take a nosedive right now. Less money in the bank, higher prices. But yeah, we’re so liberated. Bipartisan opposition is also growing—Senate Republicans just joined Dems to reject new tariffs on Canada, so I’m hopeful that things may change in the future.
Housing Hopes 🏡
Make no mistake: it's certainly not the cheapest time to buy a home (the average 30-year mortgage rate is now 6.65%, which is still kind of high), but there seems to be an increasing amount of supply on the market, as NPR reported more available homes these past few months compared to the same time last year.
In the last couple of years, as mortgage rates only got higher, there was some concern about a “lock-in effect,” which is basically when homeowners with low interest rates never move for fear of losing out on their good deal. But the recent uptick in listings is offering some kind of hope that those people will move to better homes, and free up more space for people to get into the market.Think hermit crabs moving into bigger shells, and their old shells being taken up by other younger/smaller crabs.
Basically, the idea is that more listings will equal more sales, especially with the return to office mandates that are also encouraging workers to move closer to cities now that they have to go to the office a few times per week.
HYCU; If you’ve been looking to purchase a home, this could be a hopeful sign for you, as more inventory simply means more choices. There are some moving factors, of course: economic uncertainty with the current political climate is definitely keeping some people back from putting down huge down payments, and you might be feeling some of that doubt, too. Still, as long as you feel confident in your own financial standing, this is all in all a positive thing—more inventory just means more options for you to figure out where or what your dream home is.
Zelle On Zzz 😴💸
Zelle shut down its standalone app Tuesday due to unpopularity among users, after it revealed that only 2% of its transactions happened on the app last year.
According to the company, the “vast majority” of Zelle’s 151 million users access the service through their own bank’s website or app instead of its own app, so it doesn’t really make sense for there to be an app in the first place.
The money transferring service, launched in 2017, was basically created by about 30 banks to compete with payments apps like Venmo, Cash App and Apple Pay.
HYCU; Let it be known: the service itself is not disappearing! If you use Zelle via your bank website or app, that process will be totally the same. Affected users who used the Zelle app “should have received messaging about this change through various emails and in-app notifications,” before the shutdown, according to the announcement. Those users will have to re-enroll through their bank or credit union app.
KW asks, “Aloha, your book and podcast has really inspired me to get my financial life in order, Mahalo 🤙🏽 On that note, may I ask your opinion on cash management accounts vs HYSA and is my money safe in a cash management account ?”
Hey there! Let’s dive into cash management accounts (CMAs) and high-yield savings accounts (HYSAs) to help you understand the differences and safety aspects.
Cash Management Accounts (CMAs):
CMAs are offered by non-banking financial institutions, often brokerages, and combine features of checking and savings accounts.
They typically offer competitive interest rates, usually similar or slightly below that of HYSAs, but also provide easy access to your funds with features like debit cards and check-writing.
Many CMAs are insured through partner banks, which means your money is protected up to the FDIC insurance limits (usually $250,000 per depositor, per bank).
Some CMAs do have monthly management fees and minimums
High-Yield Savings Accounts (HYSAs):
HYSAs are savings accounts with higher interest rates than traditional savings accounts, helping your money grow faster.
They’re a popular choice for building an emergency fund due to their accessibility and safety.
Like CMAs, HYSAs are usually FDIC insured, ensuring your funds are safe up to the legal limit.
HYSAs usually don’t have management fees or minimums. Check out my HYSA recommendation HERE!
Here’s something most people don’t realize: While both CMAs and HYSAs offer attractive interest rates, CMAs often provide more flexibility with spending options, but HYSAs often provide better functionality for beginners. This matters because the choice between the two can affect how quickly you can access your funds for everyday expenses or emergencies.
One thing to think about is whether you prioritize higher interest rates and lower fees or the added convenience of spending features. It’s all about finding what works best for your lifestyle and goals!
Want to be featured in our Question Bank section?
Rich Tip of the Week: Is Trad Wife Fashion a Recession Indicator??
They revealed the Wicked: For Good trailer at CinemaCon this week, and I’m already so sat. The movie theater workers are telling me to leave, but I can’t move. I’m just so sat.
Ed Sheeran thinks if you think he’s hot, that’s a recession indicator.
Forget a pilates princess, I’m about to be a skipping sprite.
SEE YOU IN THE COMMENTS BESTIES
Hi Vivian, thanks so much for sharing your expertise with all of us. Bought your book and have been given away copies to my younger friends. I wish I had read your book in my 20s.
I’d commenting because I hope you’d be willing to do a piece on ‘wash sale.’I’m new to investing and I wish I had known about it prior to selling too soon. Too late now but lesson learned! Thanks so much and best wishes! You are amazing! E.