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Welcome to Money As If, Red Hot American Summer (Rant) edition, because while it sometimes helps to focus on the good stuff, it's also cathartic to sound off about the bad. Today's issues:
Killing the vibe
Un-welcome to the Knicks Gala
Your summer spending survival guide.
— Jeanine
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IN THESE, OUR (POSSIBLE) END TIMES
Can we cancel the 'vibe-cession'?
I briefly mentioned last issue that I'm over the "vibe-cession" and wanted to elaborate a bit on why, probably because it and the associated media coverage are still annoying the hell out of me.
I'm not bothered by the term itself, coined by finance pundit Kyla Scanlon back in 2022 to describe the disconnect between strong economic data and consumer sentiment. (And, yes, OMG, that's how long our Current State of Things™️ has been Thinging.)
Official recessions are formally defined as two consecutive quarters of negative GDP growth, and, by recent accounts, that metric is growing.
Forecasts, too, are good, more or less.
So, given the divide, there's a clear need for alternative verbiage.
Still, I'm losing patience with the framing that people — and not the data — are wrong. Sometimes, this angle is overt. Sometimes, it's subtle. (It's "Americans feeling pinched …" instead of simply "Americans are.") Sometimes, writers adopt a real (forgive me) Boomer vibe ("I'll show you a real recession!”).
All of these tactics make me want to pull my hair out.
There's plenty of evidence that suggests traditional economic success metrics are insufficient in modern-day America. Take GDP, the defining characteristic of recessions. Yes, it's up, but largely because health care spending — which isn't exactly discretionary — is so damn high.
Relatedly, it's well-documented that there are currently two different Americas, and the people living in the thriving or at least stable one are propping up the economy and masking what life is like for people in the crappy one. Remember, the top 10% of Americans now account for nearly half of consumer spending.
Lastly, and, sure, this is a vibe thing, but I spent close to 10 years working in the restaurant industry, where it was drilled in my head ad nauseam that customer perception is reality, so, philosophically, I can't accept arguments that politicians, businesses, economists, media pundits, or whoever should get (or give out) passes because the statistics appear to be in their favor. If people are telling you they're struggling, they're struggling — and you should, I dunno, maybe do (or encourage someone to do) something about it.
THE HEAT
Call this other random money stuff getting under my skin these days.
I'm not a New York Knicks fan, but I am rooting for them to win the NBA championship, because I love a feel-good story and the team is trying to end a 53-year drought, but, boy, I wish these games felt more "of the people" and less of a showcase for our modern-day bourgeoisie who, at this point, are pretty much showing off that they're the only ones who can afford tickets, real fan or not real fan, court side or otherwise.
I am a Chiefs fan and, accordingly, adore my QB 1 Patrick Mahomes, but, for the life of me, I can't fathom why anyone needs to make this much money — for anything, really, but also, yes, for football, especially when you've got side gigs with insurance, sneaker and private jet companies that collectively pay you just as much, if not more. (Sorry, not sorry, Pat. Please win us at least one other Super Bowl while collecting those checks.)
I want to complain about Disney making a movie (Toy Story 5) ostensibly about how screens are turning children into antisocial zombies, only to turn around and sell versions of said screen to parents for $20 to $30 — and I am complaining, of course — but then the movie villain's parent company (LeapFrog) had to go and make a good point.
I get that this is Tracy Morgan and he's kinda, maybe doing his schtick, but teachers — who are under-appreciated, underpaid, and in short supply — are not the ones. (At least SNL's Marcello Hernández, Morgan's Vanity Fair Actors on Actors counterpart, looks profoundly uncomfortable with that part of the conversation.)
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SUMMER SURVIVAL GUIDE
Welp. It's official. Inflation rose to 4.2% last month, the highest since early 2023, which probably wasn't a surprise to anyone who buys their own gas and groceries, pays their household energy bills, or plans family vacations.
So, to help everyone get through the next three months with their financial health in as good a shape as humanly possible, I pulled together some personal finance resources, from Money As If and beyond.
How to save on gas, which, ugh, is now around $4.15 per gallon.
There are still a few ways to proof your house from sky-high energy bills. Also, if you haven't already, seriously consider switching to a budget billing or equal payment plan, which can spare you from, oh, say, $600-something worth of charges in July.
More on the expensive gas front, courtesy of Kiplinger, here's how to avoid summer travel fuel surcharges.
I love rewards credit cards, which can save you handsomely on vacations (and then some), but they are getting a lot harder to maximize, because — rant alert — everything is enshittified. Fortunately, NerdWallet has tips for making earning points, miles or cash back more manageable.
The best ways to save when realistically you really … can't.
A primer on “flations” at large and how each one can affect your finances, courtesy of Investopedia.
And, finally, advice from my dad, who went to a restaurant this week and was pleasantly surprised to find they had good food and reasonable prices: Don't spend your money on stuff that's not worth it, so maybe places will stop charging more. (He wanted me to write a full issue about this, which, fair enough, because well, I already have.)
TREND TRAP
And, finally, today, in things I would have bought if I hadn't been working on strategies to not buy things …
I recently read somewhere (probably Twitter) that if Gigi or Bella Hadid wore something six months ago, then the trend is already over. I share that here, in my money newsletter, because if you're like me — not overtly interested in fashee-ion, but sometimes hypnotized by designer goods — it could prove helpful when trying to differentiate between expensive stuff you want and expensive stuff you just think you do.
Case in point: Jellies — also known as "those shoes you wore as a kid" — are back, and I nearly bought myself a $150 Tory Burch pair (see above), because I have a serious nostalgia kick and was already eyeing summer T-Burch sandals.
I didn't (buy them, that is) because, per the Hadid rule, these things are already pretty much the fashion equivalent of those lanyards they sell at college stores that mark you as a freshmen. And, while I'm not above rocking a "cringe" trend (I've had my millennial side part long enough for it to go out and come back into style), I sense I'd wear these shoes once or twice and then treat them like "mom jeans". That means, for anyone else keeping track, that they don't pass my third suggested splurging screener question: Will I use this later?
Plus, is it just me, or do these things look much better off someone's foot than on? (Just saying.)
Got questions, comments, receipts, tips, thirst traps, etc. you’d like to share? Send them to [email protected].
This article is for educational purposes only. We don’t recommend or advise individuals to buy, not buy, sell, or not sell particular investments or other assets, as everyone’s circumstances are different. Also, it’s your money and ultimately up to you to decide the best use for it.