enRICHed: volume 94
is it…perhaps…pumpkin spice latte season?
Monday September 1, 2024
Volume 94
Hey besties!
Happy long weekend! Whether you're soaking up the last rays of summer sunshine at the beach, hosting a backyard BBQ, or enjoying some much-needed downtime, I hope you made the most of this long weekend. As we celebrate (or mourn) the end of summer, it's a great time to check in with ourselves and our goals. We are approaching the last quarter of the year, which means one thing for all my corporate besties—performance reviews, promotions and raises. I know I talk about this a lot, but here’s your friendly reminder: start asking for that raise NOW! The best time to start asking is typically mid-year, but right now is still great. Department budgets are typically finalized around October, so you want to be top of mind when those decisions are made. Here’s how you can set yourself up for success:
Start a brag book - Take any compliments on you or your work and add them to a separate email folder to show during raise negotiations. You want to show your worth, not just tell.
Schedule a meeting with your boss - Get a meeting on the books now. You can follow up every month until the end of the year or up until your performance reviews to ensure you are hitting the proper goals and benchmarks.
By showing your value and demanding your worth now, you are positioning yourself as a top contender when it’s time for raises and promotions. This confidence and assertiveness doesn’t just get you noticed—it gets you PAID.
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.
Starting Salary On Decline
Employers are scaling back starting salary levels to leverage against the rising unemployment in the country, Inc reported on Thursday.
White collar positions that proposed pay of $175,000 to $200,000 last year are now offering "tens of thousands of dollars" less as companies are taking advantage of the current labor market realities, as more people face layoffs.
It wasn’t always like this, either! People could risk leaving their jobs early 2023 because unemployment was at 3.4 percent, and many companies needed to fill essential roles, between the “Great Resignation” and burnout. It was a job seeker’s market. Now, it’s really a company’s market—unemployment rose 4.3 percent in July, and with more job seekers than roles available, hiring teams are going to try and undercut your salary.
HYCU; Just because your starting salary is being put on Ozempic doesn’t mean you have to slim down your options, too. Let me be clear—it’s so frustrating! You deserve to get paid adequately for the work you do, especially when there are bills to pay. But the job market ebbs and flows, so if you’re disheartened with the salaries you’re being offered, it could be a good idea to wait out for the right job rather than jumping at the first role that appears. If you sign onto a lower salary, it could be harder to get that deserved raise later, as they’re often calculated as a percentage of your current pay.
The Pandemic Of $1,000 Hotel Rooms
The price of hotel rooms has skyrocketed as people become more accustomed to shelling out for their stays, according to new reporting in the Wall Street Journal.
In the first half of this year, 80 US hotels averaged nightly rates of over $1,000—up from 22 in 2019, according to real estate analytics firm CoStar Group.
There’s several factors contributing to this: wealthy travelers who still haven’t scratched the “revenge travel” itch, the ridiculous prices and hidden fees with rentals like Airbnb, as well as the increasing demand for luxury suites and connected rooms.
HYCU; What are we doing here? What did we do to deserve this? Both the US and Europe are seeing rising prices for their hotels, as if traveling for the Eras tour wasn’t already hard enough. If you’re still hoping to travel on a budget, or just love the thrill of a good deal, it’s time to get smart about how you travel in order to save money. Tips like traveling during the off-season/shoulder-season or using travel credit card points can help cut down a lot of these costs.
One Nation, Under Unions
In a sweeping 99.99 percent vote, United Airlines workers have voted to approve a strike authorization.
Workers have been trying to negotiate with the company over their contract, and this is an example of them exercising their right to conduct an informational picket in the event that the company does something shady around their negotiations.
This is one point in a larger trend we’re seeing. Labor union approval rose to 70 percent in August from 67 percent this time last year, according to the annual union survey conducted by polling agency Gallup published Wednesday.
HYCU; This does not mean that flight attendants are up and walking off the job. They would only strike in the event that negotiations fail—and even then, the union would need to request a release from the National Mediation Board, and they would have a 30-day “cooling off period” before a strike begins. So, if you are flying United Airlines in the near future, keep that in mind! But it is a larger sign that amidst these brutal labor conditions, more people are standing up for rights in their workplace and trying to make their work environments a little better for themselves and their colleagues.
Golden Bank-elors
There are now half a million Americans with more than $1 million in their 401(k) accounts, according to new data released from Fidelity.
These plush retirement accounts are owned by and large by Gen X, who also made the highest IRA contributions in the past quarter—BTW, a peak in the last five years.
Conversely, the average 401(k) account balance is $127,100, lower than the average in 2021. The problem is that for younger people, they aren’t able to save as much as many employers don’t offer retirement savings options. Combined with increasing costs of living, it’s harder for young people to get their savings bag up.
HYCU; Fidelity says they were able to reach this level of retirement savings by starting early and contributing consistently over many years. It’s true—this data also shows how the rich disproportionately benefit from tax breaks on retirement savings. But if you are even able to stow away a little into an IRA or a 401(k), it could mean major benefits for your future. Even if you’re not maxing out the annual contribution, something is always better than nothing!
Commonly asked question: Jenny asks, “What are your thoughts on robo-advisors such as Wealthfront and utilizing them for HYSA? What bank do you suggest for a joint account with a partner that can increase with interest and we can save and pay bills together?”
Hi Jenny!
This is a fantastic question. To clarify for folks who may not know, a robo-advisor and a High Yield Savings Account account are two separate things. A robo-advisor is used for investing and can help you pick your perfect investment portfolio. First, you take a quick quiz about your age, money goals, income, etc and you’ll be given a selection of investments that make sense for you. A HYSA account is a savings account that you are putting money into over time to build up an emergency fund or save up for goals like a home or vacation. Savings and investing are both super important, but they serve very different purposes.
In some cases, financial brands - like Wealthfront - will offer both options! If you are enjoying a brand for one service, it may be an easy option to stick with them for the other, so you can view them in one place! For our friends who don’t yet have a HYSA, and are looking for one that has robo-advisor capabilities - this is the one I use!
Bringing in a partner is where things can get tricky. You should each have some money tied to yourselves! You must ensure you are financially secure before intermingling finances with a partner. Most financial institutions that offer individual accounts offer joint accounts, so just choose a bank that offers a HYSA so you and boo can earn more interest. Just be sure you are not dumping all your assets into one giant joint account. No matter how stable a relationship is, you need your own money.
This way, you can start saving and investing for your life together while also protecting your financial agency!
Want to be featured in our Question Bank section?
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Glen Powell shut down discourse after he was compared to Ryan Gosling with the best response—”I’m just Glen.”
I finally watched Didi in theaters and was in absolute tears. This movie hit my heart. If you grew up in the Myspace era, or have a complicated relationship with your mom, see it now.
Australia is trying to legalize the right to ignore your boss. Real AF.
SEE YOU IN THE COMMENTS BESTIES
I agree with Fidelity’s assessment that the key is time and consistency. I am an older Gen X and in 1984 my salary was $127 (gross) per week so I wasn’t contributing a lot. But I started contributing the day I walked in the door and when I changed employers I rolled the money into an IRA and started a new 401K (I also earned a degree at night while working). 40 years later I am still contributing to the 401k. So I think some credit has to be given to us who live below our means and have some serious discipline. Even though I am Gen X and not your target audience I first discovered you on Reels, read your newsletter every week and read your book. My Gen Y daughter was so surprised that I knew who you were. Keep up the great work!
Thank you for this article! Any tips for the educator crew? We’re on a fixed bracket (graduate credits x years of experience), leaving zero room for negotiation.