Sunday August 31, 2025
Volume 145
Hey Besties!
Wishing all an enjoyable Labor Day weekend as we inch closer towards the end of summer. SWEATAH WEATHAH is coming into reach! But while temperatures are dropping outside, we are turning up the heat on this week’s Am I the Financial A**Hole episode of Networth and Chill!! As we have all learned, money and friends or family never mixes well, and many situations can leave you feeling like a financial foe. This week we get into all of it, from friend vacations gone awry, to family money tricks, and the finances of a breakup, to so much more! You won’t want to miss this episode! 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.
You’re Fired 🫵
President Trump is bringing back his old catchphrase from The Apprentice — both Fed Reserve governor Lisa Cook and CDC director Susan Monarez have recently heard “you’re fired”...and as per usual, it’s stirring up a lot of controversy.
Let’s look at the Fed Reserve case first: the Fed Reserve has a board of governors with 12 members which is responsible for setting interest rates nationwide. Trump doesn’t like that the board chair, Jerome Powell, isn’t dropping rates quickly, because Trump wants to look good to voters. As a result, he’s trying to take control of the Fed by putting friendlier faces in there. Lisa Cook was elected in 2022 by President Joe Biden, and is the first Black woman to serve in the role, which is quite the opposite vibe of what Trump is going for right now. So he’s now saying he thinks she made false statements on her mortgage four years ago, before she joined the bank, which is the grounds for firing her.
Meanwhile, at the CDC, the case is a little bit different. Basically, Susan Monarez was sworn in by the Senate as director of the CDC in January 2025, an unusual move for the job (this will come up later). She then had beef with the new Health Department head RFK Jr. over his COVID vaccine policy (RFK Jr., the man who dumped a baby bear carcass in Central Park, famously does not like vaccines at all) — he asked her to back him up in rolling back COVID vaccines and she said no, so then RFK Jr. fired her.
It’s not clear whether these firings are even legal. Cook is currently suing Trump over her departure, saying that he has no grounds to fire her, and in the wake of Monarez’s dismissal, several other directors have quit in solidarity. The confusion is that because Monarez was sworn in by the Senate, technically she can only be dismissed by the President (not RFK Jr.), so it’s not clear what will go down next.
HYCU; If Trump does succeed in getting his buddies into the majority of the Federal Reserve, it’s more than likely that interest rates are going to plummet. It’ll be good for anyone who’s taking out a mortgage, car loan, or even more, but the reason that Powell is so hesitant about it is because dropping interest rates causes a lot of ripple effects in our economy like rising inflation and debt. A change in CDC leadership could mean more restrictions around vaccine access and disease data. I know, it’s all so confusing. Remember when Trump was just firing people on a reality TV show and not at the highest levels of government power?
Debt Distress 😰
Credit card debt hit $1.21 trillion in the second quarter this year, according to the Federal Reserve Bank of New York. The total is up 2.3% from the previous quarter, and it’s also an all-time high, only seen once before - this time last year.
This isn’t just happening in one demographic or another: the share of those who engaged in “negative debt behaviors” (failing to make minimum payments, paying your balance too late, etc.) in the past six months was about the same across income levels, ranging from people earning less than $50,000 a year to those with annual incomes over $100,000.
There’s also fewer people taking out mortgages and car loans, indicating that less people in higher-income brackets are able to make big purchases like houses and cars.
HYCU; This only proves that debt is becoming increasingly common among all income brackets. With issues like inflation and tariffs making costs more expensive, plus the additional existential confusion that many are experiencing, people are being forced (or sometimes just adopting a YOLO mentality) to take on more debt. But issues like debt are the number-one stress cause in the US, and paying it down can lift a huge weight off your shoulders. My quick tip for paying down debt is to 1) address the root issue of your overspending. Is it out of necessity or do you just need to get a handle on impulse purchases? And 2) get a personal loan, which gives you a lump sum to pay your credit card debt, and you just pay off the personal loan. Personal loans usually offer a 7 to 15% APR compared to the standard 20 to 30% on a credit card — so you’re paying significantly less interest rate on the same debt.
Shopping Shifts 🛍️
For anyone who loves clicking “add to cart,” a huge shift is coming to our shopping carts, as a major import exemption rule ends today.
The “de minimis” rule previously let US consumers import $800 worth of goods free of tariffs, duties and fees. The rule made it cheaper for consumers who buy products directly from international sellers — which is part of the reason why Shein, Temu and TikTok Shop stuff was so astoundingly cheap (also, you know, sweatshops).
As a result, we all know some deal-hunter that’s turned to these cheap international imported goods. The volume of these low-value shipments has swelled amid the rise of e-commerce; in 2024, the U.S. received about 1.4 billion de minimis shipments, more than double the 637 million in 2020.
Most of the shipments came from China, which is why this rule might sound familiar. Trump ended the de minimis exemption for Chinese goods in May, but now, he’s doing it for the rest of the world. All shipments — like beauty products from Korea, leather goods from Italy, homeware from Japan, clothing from Vietnam — will be subject to additional fees and taxes, such as Trump’s tariffs.
HYCU; This move most likely means price hikes for consumers who buy inexpensive goods online, and especially love buying things from retailers and brands from around the world (I’m looking at you, YesStyle and WConcept lovers). The end of de minimis may also trigger near-term shortages for certain items, economists and trade experts said. Think skincare, beauty, fashion and household goods that are typically beloved imported products.
Ocon asks, “Where do I begin to build a retirement fund at 45?”
Hey Ocon! First off, it's never too late to build a solid financial future. Here’s a step-by-step guide to help you kick off your savings journey:
Assess Your Current Financial Situation
Net Worth: Calculate your assets and liabilities to understand your financial standing.
Budget: Review your income and expenses to see how much you can allocate towards retirement savings.
Set Clear Retirement Goals
Retirement Age: Decide when you want to retire.
Desired Lifestyle: Consider how you want to live in retirement to estimate your financial needs.
Explore Retirement Accounts
Employer Sponsored Plans: If your employer offers a 401(k), 403(b), 457, TSP, etc, consider contributing, especially if they match contributions. This is free money!
IRA Options: Look into Individual Retirement Accounts (IRAs). A Traditional IRA offers tax advantages today, while a Roth IRA allows for tax-free withdrawals in retirement.
SEP IRA: If you’re self-employed, a Simplified Employee Pension (SEP) IRA can be a great option.
Determine Your Contribution Amount
Aim for 15%: If possible, aim to save at least 15% of your income for retirement.
Catch-Up Contributions: 5 years from now, when you’re 50+, you can start making catch-up contributions to your retirement accounts, allowing you to save more.
Invest Wisely
Diversification: Consider a mix of stocks, bonds, and other assets to spread risk. This helps cushion against market fluctuations.
Risk Tolerance: Assess how comfortable you are with risk. Generally, the closer you are to retirement, the more conservative you might want to be.
Regularly Review Your Plan
Annual Check-Ins: Set aside time each year to review your retirement plan and adjust as needed. This is like a financial check-up!
Consider Professional Guidance
For personalized advice tailored to your specific situation, consulting with a Certified Financial Planner can be really beneficial.
Additional Considerations:
Emergency Fund: Before aggressively saving for retirement, ensure you have an emergency fund to cover unexpected expenses.
Debt Management: Evaluate your debt situation. Paying down high-interest debt can free up more money for retirement savings.
Social Security: Understand how Social Security benefits will factor into your retirement income.
Health Care Costs: Plan for potential health care costs in retirement, as they can be significant.
Lifestyle Adjustments: Consider any lifestyle changes that could increase your savings, like downsizing or reducing discretionary spending.
Starting your retirement fund now means you’re taking a proactive step toward financial security. Excited for you on this journey!
Want to be featured in our Question Bank section?
Rich Tip of the Week: How to buy someone else's vacation for CHEAP!
Two men used stolen credit cards to buy *checks notes* $1,000 worth of Red Bull.
This season of The Summer I Turned Pretty is getting so heated that Amazon had to send out this warning message to all fans. People really do not play about Lola Tung.
Millennial parents are freaking out about passing down the value of travel. Real.
SEE YOU IN THE COMMENTS BESTIES
Are you saying the $800 per person exemption on taxes on bringing goods home from traveling will no longer apply?