Transportation expenses are on the rise, largely driven by inflation. Additionally, be vigilant against online scams targeting unsuspecting individuals.

This Week In Your Wallet: Our Move Update

For those following my home sales and renovations, here's the latest. Our cherished residence of 16 years is now owned by a wonderful couple with a baby and a dog. I truly hope they find the same peace and joy there as we did, benefiting from our fantastic neighbors.

The renovation of our Philadelphia property is somewhat near completion, but we're not quite ready to live there yet—our bathrooms are still out of commission, and the kitchen is also not operational. So, we have technically moved, but our new place currently looks like this:

I’m not complaining. Our contractor is working hard, even though he, like many, is short-staffed. If we had started later, the skyrocketing costs for wood and materials would have raised our renovation budget by 15%, with electrical work potentially increasing by 20%. Had we sold our house a year earlier, we wouldn’t have benefited from the real estate boom during the pandemic. We also made wise choices with movers, thanks to excellent recommendations and great tips like this.

I’ll take these victories as we navigate the rest of this transition. Meanwhile, like many of you, I’m committed to enjoying remote work this summer while we see how everything unfolds and continue to bring you the latest money news.

It’s Fed Meeting Week

I’ll keep this brief since we covered it in detail last week (catch up here), but the Federal Reserve is convening for two days this week to discuss interest rates, inflation, and possibly scaling back its treasury security purchases. Since their last meeting in March, significant changes have occurred. In May, the Consumer Price Index surged by 5%, up from 4.2% in April, both outpacing the Fed's fourth-quarter expectations. Recently, the CEO of JP Morgan Chase stated he believes inflation might be here for a while and that they are stockpiling cash to take advantage of higher rates later. Companies are facing challenges in hiring (a recent WSJ headline read, Forget Going Back To The Office, People Are Just Quitting Instead). There's also talk about whether COVID-related retirements should adjust the employment numbers needed for full recovery. Keep your ears open tomorrow when the Fed releases its policy statement and the minutes from this two-day meeting.

Rising Costs: Goodbye to Bargain Services

so affordable, B) signed up for dinner kit subscriptions to enjoy the free weeks, or C) zoomed around on a trendy scooter that cost $1 plus a few cents per minute? These low prices seem like memories of the past. Like many, I took advantage of those offers, quickly cancelling dinner kits after trying them out. I skipped renting cars in Chicago and LA because ridesharing was incredibly cheap. However, as Kevin Roose notes in The New York Times, those Millennial Lifestyle Subsidy dollars—funded by venture capitalists supporting services like MoviePass and Uber—are fading away.

So, if you've noticed that fees for these services are up, they really are. As Roose states: “Hiring a private driver during rush hour in Los Angeles should cost more than $16 if everyone is fairly compensated. Cleaning your house, doing laundry, or having dinner delivered should be a luxury if there's no exploitation involved. The fact that some high-end services are no longer attainable for the less affluent might signal progress.”

Beware of New Facebook Messenger Scams

This week, I received a Facebook message from a cousin in her 80s. It seemed like a friendly hello from someone living nearby. But soon she mentioned a “new program from the National Institute(sic) of Health…helping Retired, widowed, Disable(sic) and Non-Retired with cash. The initiative is a special funding program to help pay medical bills, buy home and starting of own business.” That raised a red flag. First, I doubt this cousin would make such glaring grammatical errors. Then, she urged me to text a number for more info—after I provided personal details that could lead to identity theft.

Just a heads up: scammers are everywhere. They want your data and will use any means to get it. If you block them on one platform, they’ll reach out through another. Always remember: If someone contacts you, don’t share personal information unless you initiated the conversation.