enRICHed: volume 84

it's getting HOT in here ☀️

Jun 23, 2024

Volume 84

Hey besties!

As the summer heats up, the money we are spending comes to a rolling boil as well. According to a 2018 study, summer is the second-most season where people spend the most money, right behind the winter holidays. The FOMO is real—with everyone traveling, going out, getting drinks, etc. it can be hard not to spend. Going out with friends and spending $50 a night on food and bev can add up super quickly. I’m reminding you, it is 1000% okay to have firm financial boundaries. Be upfront with your friends and family about your budget and what you are and aren’t willing to spend; it’ll only make you that much more secure and powerful in your financial journey. Just make sure to offer up lower-cost alternatives (pizza night in instead of sushi dinner out) to maintain your relationships. AND if you are looking to get your money right, check out my New York Times bestselling book Rich AF! It’s an easy enough beach read with fun stories AND you might learn a thing or two 😉

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.

It’s Gettin Hot in Here 🔥

This heatwave has me chewing ice in the loosest clothes I own, blasting the AC and laying down on the hardwood floor. It’s hot. If you live in the Northeast or Midwest, you know. It’s been hot for days. I go into meetings and barely remember my own name. The heat is moving to the mid-Atlantic this weekend, according to the weather reports, and could hit over 100 degrees this weekend. Take humidity into account, and it’s over 105. I’m tired just even thinking about it.
Good news? Cities like Indianapolis, Detroit, Cleveland, Cincinnati, Buffalo, Pittsburgh, Philadelphia, Washington and Baltimore are expected to cool down soon. NBC forecasters advised people to “drink plenty of fluids, stay in an air-conditioned room, stay out of the sun, and check up on relatives and neighbors.”
All this heat is making its way into law, too—California just voted to implement rules protecting indoor workers from extreme heat, like warehouses and restaurants. Other states like Oregon, Washington, and Minnesota have already begun making moves towards it this year, but as this heat persists, we’re starting to see more individual cities and states enact these rules. There’s also a national heat rule making its way through the White House right now, which hopefully gets passed, because if I feel like I’m being roasted like a little potato, I can only imagine what folks who work outside are feeling
HYCU; You can check this heat index from the National Weather Service to see if it’s too hot to be outside. There are signs the heat wave might come back in July, so make sure you’ve fixed your air conditioning, have access to water, and are able to comfortably stay indoors. This news isn’t necessarily about personal finance, but health is wealth, baby!

Vroom Vroom…I Can’t Get A Car 😗🚘

Auto tech company CDK Global, whose software is used by 15,000 car dealerships across the US and Canada, experienced two consecutive cyber incidents this week that has since started a cascade of problems, including the thousands of dealerships grinding to a near halt as the company tries to investigate the problem.
Basically, all these dealerships use CDK Global for everything from records to scheduling. On Wednesday, the company announced it was investigating a cyber incident, shutting down the system to figure out what happened. Then, a day later, it was attacked again. So since then, they’ve shut down the system completely until they figure it out. And now, all these dealerships are trying to figure out how to sell cars the old-fashioned way again… or are just sitting there and stewing in the heat.
It’s really unfortunate because summer is peak car-buying season. I mean, CDK Global even said in a blog post on their site last week, writing that post-Memorial Day “presents increased opportunities for vehicle sales, service and, of course, revenue.” Zoinks!
HYCU; Of course, if you’re looking to buy a car now, there’s even more challenges that come with your search now. Yeah, not every single auto dealer uses CDK Global, but a lot of dealers moved online because it was safer than leaving all your customers’ information on your desk next to your bagel and coffee. That being said, if you’re looking to buy a car and it has to be now, definitely check your local dealerships to see who is able to hand-write your order. Some brands like Ford and Lincoln have already said you can contact their customer service lines directly to figure it out. Until the shortage is fixed, may the odds be ever in your favor.

Credit Card Debt Hits High 😰

Overdue credit card debt is at the highest level it’s been in over a decade, PBS reported this week, and people 35 and under are struggling more than other age groups to pay their bills.
According to the Federal Reserve Bank of New York, the amount of credit card debt more than 90 days overdue rose to 10.7% during the first quarter of this year—and the increase of delinquencies seems to be outpacing income growth, which is a real indicator that people are struggling to pay their bills.
There’s a ton of factors that point to why this is happening, TBH. Wage increases are simply not matching inflation’s freak, the annual interest rate on credit cards is the highest it’s been since 2019, and the cost of living has only continued to rocket upward. And it’s all made to be so confusing and difficult, which is why this happens!
HYCU; Don’t give up! The whole point of you reading this is so I can hopefully point you in the direction of some solutions. If you’re also in this situation, the article offers a few solutions: you can see a nonprofit credit counselor who can (for free) give you recommendations for pulling yourself out of the hole; you can also negotiate your long-term payment plan with your creditor. For me, I’d also consider a balance transfer card or a personal loan card, which will help you get no interest on your debt for 18-ish months or roll your debt into a new loan with a lower interest rate if you need more time to pay it off. Coincidentally, our Question of the Week is all about credit card debt, so read below for more on personal loans!

Commonly asked question: Maureen asks, “Hi Vivian--I have around $14k in credit card debt, it's become difficult to pay it down due to the interest that it accrues every month. I don't have much extra money to put toward it every month at this time. I do however have money in investments--an inherited IRA from my mother who passed, and a couple of investment accounts with Betterment. Would it be wise to take money out of those accounts in order to pay down the credit card debt?”

Before taking out anything from an investment account, I would recommend looking into a personal loan! As you have mentioned, the hardest part of credit card debt is when the interest starts building up because then you aren’t even putting a dent into the debt but instead you are just paying down the interest accrued. A lot of credit card debt can have up to 20-30% interest whereas a personal loan can have anywhere from 7-15% so you can essentially halve your debt’s interest rate. You’ll get the personal loan, pay off your credit card debt using that money, and then pay off your personal loan instead. This can be a great option to help you pay off your debt quicker. Check out my personal loan recommendation HERE!

Want to be featured in our Question Bank section?

Drop a Question Here!

Rich Tip of the Week: Here’s how you can get a HUGE raise!
Limited Too is apparently making a comeback, and I just know this one will have the Y2K nostalgia shoppers in a frenzy.
Spotify’s basic $10.99 plan is dropping the 15 free hours of audiobooks you get—so now, if you want to listen to a wildly smutty romance story while folding laundry, you can pay $11.99, or use the free library app Libby. But we love and cherish both, I’m not here to pit two queens against each other.
Inside Out 2 is now in theaters, and it’s so good that a few days later, I randomly thought about it and just started sobbing again.
If you need a game to pass the time indoors, I’ve been obsessed with playing Costcodle, where you guess the price of Costco items.

SEE YOU IN THE COMMENTS BESTIES