enRICHed: volume 128

pollen count is high and so is my money

May 04, 2025

Volume 128

Hey Besties!

Not trying to kill your Sunday-Funday mood, but I want to get real for a sec because we NEED to talk about healthcare. I can’t tell you the number of DMs and questions I get on the reg about medical debt & bills. And no, not just after Mr. Luigi propelled this issue onto the debate floor. Healthcare in the US is confusing, it’s stressful, and it’s left nearly 100 million Americans in medical debt. That’s why on this week’s episode of Networth & Chill I am spilling all the healthcare tea so that you can get the coverage and care YOU DESERVE. I dive into how to negotiate down your bill, why you pay both a premium & deductible, where to look for discounted care, and more. 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.

Recession Indicator 😬🔮

Here’s something that we basically already knew: the Department of Commerce’s GDP report revealed that the economy is actually weaker than it appears, as the gross domestic product fell in the first three months of 2025.
This was the first drop since the first quarter of 2022, partly because of the panic to get ahead of President Donald Trump’s tariffs. Businesses were stocking up early and frontloading exports, which dragged growth and put pressure on supply chains. Consumers were also spending less, with confidence in the economy plummeting, which only contributed to the bleak outlook.
President Trump blamed former President Joe Biden for the drop, but even some of his most loyal fans aren’t so sure. Barstool founder and vocal Trump supporter Dave Portnoy even said: “This is his market, not Biden’s…Don’t piss down my back and tell me it’s raining.”
HYCU; People have already been pointing out recession indicators, and it seems that more and more signs are pointing towards it. Most economists are predicting a recession with our current trajectory now. Negative growth and rising prices is a pretty gloomy combination—we’re facing a potential future of high price tags and empty shelves, being able to afford less without the pay matching up.

Not-So-Fast Food 🍔🍟

If we need another indicator of being economically down bad, look no further than the Golden Arches. Low and middle-income consumers are buying less from fast-food restaurants like McDonald's and Starbucks, a sign that people are pinching pennies amid worries about shrinkflation and the looming recession.
The number of low-income consumers visiting US fast-food restaurants was down “nearly double digits” in the year's first quarter compared to last year, McDonald's CEO Christopher Kempczinski said Thursday. Visitors from middle-income customers “fell nearly as much.”
Fears about price hikes and job losses basically translates to less time spent eating out, even at places that are marketed as cheap eats.
That being said, not all chains are doing poorly. Taco Bell actually reported an increase in the first quarter, which many analysts are linking to the brand’s focus on value.
HYCU; The most likely outcome of all of this is that restaurants will continue to focus on value menus, launching limited-time offerings and new products to bring consumers back in. We’ll probably see more meal deals and small treats that are cheaper for the consumer and cheaper to make—so if you do like the occasional drive-thru experience but want to save more on your dining out budget, keep an eye out for deals like this.

The Last Boat 🛥️💔

Some of the last cargo ships carrying Chinese goods *without* the incoming tariffs are docking at US ports—which means next week, we’ll start to see tariff prices.
Ships loaded after April 9 will also bring in the 145% tariff President Donald Trump slapped on goods from China last month. There will also be fewer ships at sea carrying less cargo, since for many importers, it’s just too expensive to keep doing business with China.
Like we’ve already talked about on enRICHed, it’s going to be uncomfortable, since China is still one of America’s most important trading partners. It’s where we get most of our clothes, footwear, electronics, and microchips that are needed to make appliances, thermostats and anything else that beeps.
Imports into the United States during the second half of 2025 are expected to fall at least 20% year over year, according to the National Retail Federation, and the decline from China will be even starker (JPMorgan expects a 75% to 80% drop in imports from there).
HYCU; We’re already beginning to see some products, from car tires to clothing, begin to rise in price. Both businesses and customers are making the ultimate financial Sophie’s Choice right now: for businesses, it’s picking whether they should continue selling products from China at more than double their previous prices or stop selling those products altogether; for consumers, we’re trying to figure out which products will be hard to find or may be too expensive to buy.

Karen asks, “Big fan of your content. I'm in my 20s and have been trying to figure out the best way to distribute my money. My goals are for my income to be distributed between my Roth account, a HYSA account, and student loans besides my other monthly spending. If I want to also be saving for big ticket items like a house or car, how would you suggest "weighing" those three categories?”

Hey Karen!

It’s awesome that you’re thinking strategically about your finances in your 20s! Balancing contributions to your Roth IRA, high-yield savings account (HYSA), and student loans while saving for big-ticket items is totally achievable with the right approach.

Here’s how many people think about distributing their money across these categories:

Emergency Fund (HYSA): Before diving into investing or extra payments, it’s crucial to have an emergency fund that covers 3-6 months of living expenses. Many folks keep this in a HYSA since it offers better interest rates than regular savings accounts. You might want to allocate about 10-15% of your income here until you hit your target. Here’s the HYSA I use.
Student Loan Repayment: Aim to make at least the minimum payments on your loans to avoid penalties. If you have high-interest loans (usually private, and by high I mean above a 7% interest rate), consider allocating as much of your income toward paying these down as possible. This can save you money in interest over time. If you have lower-interest loans (usually federal, and by lower I mean less than 7% interest rate) you can slow-roll these and just make the minimum payment, as your money will be more effective going towards other causes.
Retirement Savings (Roth IRA): Contributing to your Roth IRA is essential for long-term growth since it allows for tax-free growth and withdrawals in retirement. Aim for the annual limit of $7,000 for those under 50 (limit is $8k if you’re over 50), but don’t feel discouraged if you can’t hit the annual limit. Even if you don’t max out the account - it’s still worth doing!
Saving for Big-Ticket Items: After addressing the above 3 priorities, you can allocate any additional discretionary funds from your income towards saving for a house or car. This can vary based on how soon you want to make those purchases.

Balancing these categories often requires flexibility. Depending on your financial situation (like if you get a raise or have unexpected expenses), you might need to adjust your budget, but you can use this as a rough flow chart to get your saving priorities in order!

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Rich Tip of the Week: How to financially prep for a recession!
In-office commuters are calling rawdogging their commute (no earphones, no screens, no newspapers) “barebacking.” Um!
ChatGPT got called out for being a suck-up in its latest update…
Michelle Obama opened up about what parenting while in the White House was like.

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