Good morning, HTM Family!

If you’re from the USA… Happy 247th birthday to our country! 🥳 🎂 🇺🇸

(And if you’re not from here, why not take the day off and celebrate anyway!? Today is all about celebrating independence, hanging with family and friends, and toasting to the good life!)

We know you’ve got a lot of partying to do, so let’s get straight to the money stuff. 👇👇👇

TO DO

Ask for a Credit Limit Increase ☝️

Your mission this week: Call your credit card company and ask them to increase your credit limit.

Although you probably don’t need access to more credit, increasing ⤴ your available credit will decrease ⤵ your overall utilization ratio, which has a positive impact on your credit score.

This is one of the quickest ways to boost your credit score, and many card issuers can approve and make changes immediately!

SPENDING

4th of July Celebration Costs… 😳

According to Lending Tree, Americans who are planning to celebrate Independence Day are expecting to spend an average of $270…. (Is it just me, or does that sound ridiculously high!?)

Not to throw shade, but younger generations will be the biggest spenders, averaging $394 for Zoomers and $343 for Millennials.

Here are some other fun (and not so fun) 4th of July numbers & stats…

• Beer & Wine 🍻: Americans will spend about $2.3 billion on beer and hard seltzers this holiday, and ~$700 million on wine. Whoa!

• USA Merch 🇺🇸: About 1 in every 3 people will purchase patriotic merchandise, to decorate themselves, their houses, and of course - their pets!

• Fireworks 🧨: The 2022 estimate for firework spending was $2.7 billion across the country. (Sadly, 10k+ people injure themselves setting off fireworks each year on July 4th — be careful folks!!!)

• Overspending 😭: Apparently 18% of people admit they regret overspending on previous 4th of July celebrations.

• Credit Cards 👎: Most people will be tapping their cards to buy stuff, but 37% of them admit they don’t have the cash to cover the cost, and plan to take on debt to afford festivities. Nooooooooooo!

• Hot Dogs 🌭: About 150 million hot dogs are consumed every July 4th… And one lucky eater will win $10,000 today for first prize in the annual Nathan’s Hot Dog Eating Contest. (Joey Chestnut has won 15 out of the last 16 years — his record is 76 hot dogs in 10 mins!!!)

For the record, we’re not against spending money or enjoying the 4th. But we are against overconsumption and consumer debt. Something to keep in mind today as you’re donning your red, white, and blue!

Related stuff:

• 💻 WalletHub: More 4th of July Facts & Figures

• 🎧 Podcast Ep 290: Enjoying Holidays without Spending a Dime

TOGETHER WITH DO MY OWN**

Life’s a Garden. Dig It.

Who’s ready to get outside and tackle some backyard DIY projects this summer? 🙋‍♂️🙋‍♂️🙋‍♂️

If so, be sure to check out the DoMyOwn site — it’s the #1 online store for DIY pest control and lawn/gardening solutions. We buy our pesticide and rat traps from this site. And doing that home maintenance ourselves (on our house + our rental props) saves us hundreds of dollars each year.

They have a summer sale now on many of their products, check them out!

DEBT

SL Forgiveness, Not Happening 🚫

We saw it coming… but now it’s official. Last week on Friday, the Supreme Court shot down President Biden’s student loan forgiveness plan…

Whyyyyy???
Basically, when the Biden Administration proposed canceling debt, they were under the assumption that they had the authority to do so (under the HEROES act, which allows them to “waive or modify” loan terms in disasters. This is the same Act the Trump administration used to pause loan payments when Covid first started).

Well, it turns out the federal law doesn’t stretch that far, according to the Supreme Court. A majority of the justices have now ruled that “a mass debt cancellation program of such significance requires clear approval by Congress”. (which is unlikely)

So… what happens now?
The President will probably look for alternative avenues to relieve student debt… he’s already looking at other routes to get there. But, nothing is guaranteed! And almost any type of mass forgiveness will likely be met with more legal challenges. ($400 billion is a lot of money, after all)

In the meantime, those with federal loans need to prepare for payments to resume this Fall!

What should I do if I have federal student loans?
First, contact your loan servicer and figure out a) when your payments will start again and b) exactly how much your payments will be. The StudentAid site has info on how to request that.

Next, make a plan to begin monthly repayments. The average payment is ~$400 per month, so it’ll be a shock to many people’s budgets. Here are some things to do:

• Prioritize high-interest debt ASAP. Eradicating as much interest as possible will free up money to put toward student loan payments when they begin again. If you have revolving credit card debt, pay it off!

• Pare back your spending. Look for any way to save on monthly expenses. Kill subscriptions, reduce luxuries, and postpone big purchases if you can. Live on your bare-bones budget for a bit if necessary.

• Beef up your emergency fund. Whatever savings you can scrounge up in the next 60 days, hopefully the full monthly payment amount, add that to your high yield savings account so you have more wiggle room when payments resume.

• Start a summer hustle. If you’ve cut your expenses down to the bare minimum and still can’t make payments, work to increase your income. Get a summer job, side hustle, or look for higher-paying work elsewhere.

Is this ruling final? Will things change again?
Student loan forgiveness is still a top focus for politicians, including the President. But this ruling from the highest court in the land puts a nail in the coffin of this specific attempt at debt cancelation.

The SAVE plan could save the day

Gotta love the acronyms coming out of DC. But there’s also a lot of additional help coming down the pike for student loan borrowers thanks to the Department of Education’s new SAVE plan. The Biden administration says that borrowers will be able to take advantage of this plan before payments resume in October. The SAVE plan will result in significantly lower payments for borrowers all around the country.

How much will you save? Undergraduate borrowers could cut in half the amount that they have to pay towards their loans each month, from 10% of discretionary income to 5%. It could go even further for many and will result in lower payments for a big chunk of lower-income households.

We’ll be talking about this plan more as the details continue to surface!

Related stuff:

• 💸 SAVE plan calculator: Figure out the impact on your payments

• 💻 HTM Blog: 27 Ways to Save Money in All Areas of Life

ICYMI

In other news…

Master List 📝
We just published an “HTM Resources” page with all the cool resources we mention on the show a lot. There are 150+ sites/links/notes all listed in categories so if you’re looking for something we reference on the podcast, chances are it’s here! (and we’ll continue to update it over time!)

Costco Crackdown 🛒
Costco is pulling a Netflix and cracking down on membership sharing. They loosened standards in recent years with self-checkouts, but are now vowing to check IDs and membership cards more thoroughly.

Employee Well-being 👨‍💼
A recent Delloite Workplace Intelligence survey revealed many employees are struggling with low levels of well-being, and it’s gotten worse over the last year. But there’s a huge disconnect because the same survey pointed out that 3 out of 4 executives inaccurately believe that their workforce’s well-being has improved.

Chipper App 🧑‍🎓
Speaking of student loans, the Chipper is a free app that helps student loan borrowers better understand, manage, and chip away at their student loan debt. They also help you decipher and file for forgiveness programs! Check ‘em out if you are confused about your loan payments/options.

Debt Shame 🤦‍♀️
With the nation’s credit card debt hovering around $1 trillion, those in trouble are getting more embarrassed and hiding their debts from others. Sadly, this is the opposite of what they should do — confronting issues head-on and asking for support is usually best. **If you have troubling debt, PLEASE seek support - you are not alone!!**

HOW *YOU* MONEY

Neil, 34 y/o, Lakeland FL ☀️

Occupation: Director of Audio Visual Services
Salary: $61,000

Paycheck deductions: Taxes = $670, 401K = $423, HSA = $150, Insurance = $290, (Company match HSA contribution additional $100)
Rent: Rent, utilities, and insurance on a 1 bedroom apartment = $637
Other Debts: Student loans current = $254, student loans on pause = $225, car loan & insurance = $464
Living expenses: ~$1,000 roughly

Leftover savings each month: Varies depending on expenses

How are you investing your excess savings each month?
Each month I automatically put $350 in emergency fund savings, and $200 in an IRA account. With my remaining excess savings, I put 35% of profit towards student loans, 20% towards car payment, 20% towards IRA, 10% towards special savings goal, 10% towards brokerage investment account, and the remaining 5% stays in checking.

Biggest “craft beer equivalent” splurge:
Taking two vacations a year. One vacation to see out-of-state family, and one to go somewhere new and have new experiences.

Best savings hack/advice:
Automate savings and investing. Run your personal finances like a business, keep track of everything.

Biggest money challenge right now?
Worrying about federal student loans becoming unpaused.

Recent money win and how did you celebrate?
Every month that I make a profit, it feels good to spread out the funds to decrease debts, and increase investments!

**Editor’s note: The reason we share these reader stories is to give you a glimpse into how other people handle finances, and encourage you to prioritize saving/investing/paying debt no matter your background or situation. Have you got a story that might help or inspire others? Fill out the form to be featured! (We won't publish anything you don't approve first) And thank you in advance for helping our community grow richer and happier, together.**

That’s it for now! Have a great holiday, and party responsibly!!! 😜

Best friends out 🍻