enRICHed: volume 90

atm actually stands for all this money 💸

Aug 04, 2024

Volume 90

Hey besties!

Summer is supposed to be the time to take it easy, kick back and relax, or if you’re me, cram in as much work and travel as humanly possible! A lifetime supply of iced matcha could not give me the energy to tackle the mountain of work that I’ve got on my plate! But hey, it’s been a summer packed with incredibly exciting projects on the horizon. I’ve been feeling super optimistic about my career, but I want to be honest: I’ve also been thinking a lot about burnout and the toll it can take on us. Now, this may sound a bit hypocritical coming from yours truly, a self-confessed workaholic, but burnout is so real. It can sneak up on even the best of us, especially when life is moving at a million miles a minute. While I’m no expert, and honestly pretty bad at setting boundaries, it’s something that I’ve been trying to work on and I hope maybe that’ll resonate with some of you as well. When cool projects or opportunities come your way, it’s natural to say yes and jump in head first. Heck, it doesn’t have to be work related. Between chores, scheduling time for your family, seeing your friends, and just taking care of yourself, it can all feel pretty overwhelming. That said, I’ve been trying to be more conscious about what I can actually realistically (not in my magical perfect world) take on. The first step is giving yourself permission to slow down. When it comes down to it, you are the only one who can bring your unique talents and energy to the table, so you better preserve it. Remember, it’s okay to take a break. It’s okay to say no. It’s okay to put yourself first. You can’t pour from an empty cup.

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.

Even More Layoffs, Pt. 123456 💔

In not-so-great news, more layoffs are sweeping through companies this week, with Intel, Disney, Sony, Hostess, John Deere and more announcing cuts to their workforces.
Tech giant Intel has announced that it is laying off 15,000 workers and stopping all “non-essential work” as part of a $10 billion savings plan for 2025. The company announced Friday that it will reduce its R&D and marketing spend “by billions” through 2026 and “stop non-essential work” and “all active projects and equipment.”
Every industry has been under fire, it seems, from entertainment to food to outdoor products. The tech industry’s layoffs have been going on strong throughout the entire year—companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have all done pretty significant layoffs in the first few months of 2024.
HYCU; Getting laid off will never get easier emotionally, but as it becomes far more common for young people in their professional careers, it’s so important to know how to deal with it. I know we’re all sick of living through unprecedented times, but hopefully being armed with a plan of knowing exactly what you need to do if you do lose your job can ease the pain and shock of it. I’ve got some tips in these videos, including knowing how to predict a layoff, what to do when you get laid off, how to roll over your 401(k), and how to ask for more money when you snag an elusive job offer.

Unemployment On The Up 😱

It seems the numbers have caught up to what we’ve all been yapping about, because the Bureau of Labor Statistics released their latest report and the data lines up with what we’re all feeling—unemployment is up, and there are fewer jobs on the market.
According to the report, businesses added just 114,000 jobs in July compared to the expected 175,000, while unemployment jumped 0.2 percent. The health care and social assistance industry accounted for the most job availability with 64,000 jobs—more than half of all opportunities on the market. Construction, leisure and hospitality, and government were the next highest industries, while job creation across other industries was not serving.
All this means that people are starting to get annoyed with the Federal Reserve, which opted to hold interest rates steady at 5.25 percent (the highest it’s been in two decades, FYI). Many are wondering whether the jobs market has enough energy left to economically tread water until the first interest rate cut is made, which experts have said will likely happen in September.
HYCU; While the report doesn’t indicate anything guaranteed in the future, it can be a helpful temperature check of what might be going on. When rates are higher, borrowing is expensive which can slow down business growth and lead to layoffs, however, this slow down does help curb inflation. On the flip side, when rates are lower, borrowing gets cheaper, which spurs business growth and job openings, but inflation may balloon because people are incentivized to spend more and save less. In regards to those looking for a change in their careers, those growing industries could be an interesting place to explore, and hopefully this info helps to make you feel less crazy and validates how hard things are right now. Times like these really emphasize the importance of having a financial plan for the future, so make sure you’re putting money away for a rainy day and sit down with yourself to write some short-term and long-term money goals! You got this, besties!

Short King Spring? More Like IRS DraftKing Spring 👀🏀

Time to start counting your winnings, because betting platform DraftKings will start taxing winning bets in high-rate states in an effort to boost profit, the company announced Thursday.
The company will implement a gaming surcharge on winning bets in states with multiple betting operators and where the tax rate is above 20 percent. That includes Illinois, New York, Pennsylvania and Vermont.
Pressure has been on sports betting companies like DraftKings and FanDuel for a while now, as state governments have begun imposing tax hikes on sports betting revenues. Illinois instated a sliding tax rate in May that threw 40 percent levies onto companies with the largest adjusted gross revenue, while New York and New Hampshire have 51 percent tax rates on sports betting companies.
HYCU; Basically, DraftKings is asking you to chip in (get it) for some of the taxes that are being imposed on them by state governments—so if you’re a fan of betting, this is something to consider when using these platforms, particularly if you’re in one of the aforementioned states. These things can be fun when it’s just you and your friends, but of course, I don’t think sports betting is a reliable way to get rich, so I wouldn’t sink too much cash into the Kansas City Chiefs, especially if it’s money you need to live.

Commonly asked question: Millissa asks, “Should I stay on my parents' insurance plan until I'm 26 or should I take what my first salary job offers me? They're both Kaiser, but just wondering what's more financially smart in the long-term. Thanks!!!!”

If you can…STAY!!! If your parents are okay with paying for your healthcare coverage, staying on your parents’ health insurance for as long as possible is 100 percent the smart financial decision. To state the obvious, they’ll be paying those premiums, and not you. But more importantly, often there are economies of scale when it comes to healthcare packages, meaning the cost for each additional person covered isn’t as high as the original first person (the person employed at the company providing the healthcare plan). Additionally, even though both plans may be under the same provider, the specific coverage you get will vary from plan to plan and the plans will vary employer to employer—meaning the care itself may not be apples to apples. So net net, if you’re happy with your current level of healthcare, and your parents don’t mind you leeching on them a little longer, you’ll get to save some money & not deal with the hassle of potentially changing doctors. Ride that insurance plan for as long as you can!

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Rich Tip of the Week: Check out these back-to-school deals!
The women’s Olympics gymnastics competition made me so emotional this year—Suni Lee and Simone Biles have been through so much, prioritized their mental health, and came out on top.
Meanwhile, I’m obsessed with the fun little stories that have come out of the event, like the fact that Flava Flav sponsored the women’s polo team and that the Egyptian fencer (and doctor) Nada Hafez competed while seven months pregnant.
Maya Rudolph is returning to SNL to portray the now-official Democratic nominee, VP Kamala Harris. Let the coconut tree jokes commence.

SEE YOU IN THE COMMENTS BESTIES