enRICHed: Volume 13

Written By Rich BFF

20,000

Actually, it’s more than that by now! We hit a new milestone this week BFFs! There are now over 20K of you following along every Sunday to get your news and we are thrilled. Thank you for all of the feedback you have given us over the last 12 weeks - we can’t get better without you and sometimes need the reminder that we aren’t crazy for assuming people want another email in their inbox.

P.S. EiC popping in to brag on Viv’s behalf because she made Forbes 30 Under 30!!!! A belated newsletter CONGRATS to her on this huge accomplishment.

A few administrative reminders below:

  • HYCU, pronounced ‘haiku’: how the news impacts you and your wallet, aka How You Can Use

  • Spilling the Prosperitea 🫖 : our hot tips for you on all things money. Think discount codes, hacks, non-boring finance articles, sales, etc. 

Now that you’re up to speed, let’s get you enRICHed.

Free Bus Rides

  • DC has announced that it plans to begin subsidizing bus rides on July 1 of next year. The government is also expanding bus services on the busiest routes to 24/7 access, to help essential workers who usually have to use ride-share programs to get home from their night shifts.

  • $2 a ride may seem small, but when you are taking the bus twice a day, 5 times a week, it adds up to $80/month or more with leisure trips or for those who only have 1 day off.

  • HYCU; investment in public transit has historically positively impacted business districts at a relatively minor cost. It allows workers to access job markets they otherwise could not, it reduces traffic congestion, and can empower people to spend money they would be spending on car costs elsewhere in the economy.

2022: 1 - Retail Traders: 0

  • Bloomberg reported this week that retail traders suffered $350 billion in losses this year, as a result of risky stock picks and the tech fall out. The average retail portfolio was down 30% this year, even though the S&P was only down 17%. Among the popular picks were Apple, Amazon, and Netflix.

  • Tesla in particular lost retail investors $78 billion, which is almost a quarter of all of the year’s losses. It was even uglier for those who invested in Bitcoin, which is down 64% on the year.

  • HYCU; we always say it’s like buying stuff on sale, the only time people run from a sale is in the market. You may see this and feel discouraged, but fear not. If you keep investing what you can, early and often, in diversified ETFs/mutual funds that track the broader market and if you wait, you’ll be in a much better place. But of course, it’s always best to seek advice from a professional.

If You Can’t Stand The Heat…

  • Heating bills are expected to increase 30% this winter on average. And while homeowners feel this directly, renters may feel the expense passed on to them in the form of increased rent.

  • The one good thing coming out of the increased need for not only heat, but AC, is that landlords are looking to invest in long term solutions in the form of energy efficient technology.

  • HYCU; After years of low energy prices, this is a wake up call for landlords around the country. Making the switch from oil to natural gas or even electric heating pumps may pay out in the long term, as our summers get hotter and winters colder. Another way to keep the bill down? Sealing drafts can cut heating costs by 15%.

Maxwell Frost’s Bad Credit

  • Incoming Congressman Maxwell Frost was the first member of Generation Z to be elected to Congress. In preparation for his new job, he went to apply for an apartment in DC - and was denied because of bad credit.

  • In a Twitter thread, Frost admitted that yes he actually does have bad credit, a result of the debt he took on to run for Congress (how much does that cost? we’ll tell ya!). He quit his full time job to run, and drove for Uber on the side, but he still couldn’t make ends meet during campaign season.

  • HYCU; this story serves as an unfortunate reminder that no matter who you are, even if you are a member of the US Government, you can still be denied an apartment because of bad credit. But luckily, you follow Your Rich BFF, where we share the best ways to improve your credit score.

Cash App’s Culture Play

  • Cash App has been leaning into its organic brand awareness among Black users, with advertisements featuring Serena Williams, OBJ, Meg Thee Stallion, and Kendrick Lamar.

  • CEO Jack Dorsey has said that Cash App acting as bank accounts to historically unbanked communities was not an original business goal, but it’s something they are not afraid to lean into. Pew Research found that 59% of Black Americans say they’ve used Cash App, compared to 17% of White Americans.

  • Similar to Your Rich BFF, Cash App understands their customer: those who are attuned to pop culture but are also financially curious and want to achieve financial success. The App’s series “That’s Money” promotes financial literacy using Black icons as spokespeople.

  • HYCU; leaning into your customer has its benefits. Cash App’s gross profits are up 29% YoY, and they hit 47 million accounts. Not quite at the level of PayPal, Cash App has proven small but mighty as it expands to bank accounts, debit cards, and trading services.

Rich BFF
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