It Feels So Good to be Back! Oh, and it's my Birthday Month!!
It has been a while since my last blog post. April this year to be exact. I decided to take the summer off to get a handle on somethings. Clears throat… celebrating my engagement, bachelorette party and being a newly-wed. It felt so good to celebrate with loved ones after such a difficult year! I have to admit… since outside has opened back up, I’ve gotten myself into some unwanted debt. But don’t worry, as a birthday gift to myself, I’ve paying off a large chunk of that… talk about #adulting. Let’s talk about some relevant issues we all should be aware of and how it effects our pockets.
Consumer Price Index (CPI)
What is CPI? CPI stands for Consumer Price Index. It’s a measure that examines the weighted average of prices of a basket of consumer good and services. That includes things like transportation, food and medical care. It’s calculated by taking price changes for each item in a predetermined basket of goods and averaging them. This measure is used to track price changes associated with the cost of living. According to investopedia.com, the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. You may have heard inflation a lot this year while the economy is slowly recovering from COVID-19. Remember, inflation is the decrease in a currency’s purchasing power; or a general rise in prices. According to the US Bureau of Labor Statistics, CPI has increased by 5.3% over the last twelve months ending in August.
What does all of this mean? This means things like gasoline, household furnishings, food, energy, medical care, vehicles and a host of other things with cost “us” (the consumer) more. So if you’ve noticed an increase on your grocery bill or light bill, now you know why. The CPI for September is scheduled to be released October 13th, so keep you eyes peeled. Prices could increase more!
Hurricane Ida
We are all aware of the devastating occurrence of Hurricane Ida. As of today, power still has not been restored. The city is estimated to have power fully restored by the end of this month. September 29th to be exact. I’d be remised if I didn’t provide resources on where to donate. I’ve done my due diligence before checking these sources, but feel free to do your own as well! Organizations like Charity Navigator can lead you to reputable nonprofit groups. It’s still not to late to donate and every little bit helps:
All Hands and Hearts - volunteers on the ground to clean debris, sanitizing homes, gutting flooded homes and other ways to help
Culture Aid NOLA - working to get meals to those in the city
Operation BBQ Relief - actively feeding first responders and those affected by Natural disasters
Student Loan Pause is extended, again- Yay!
The Biden Administration has extended the student loan pause until, January 31, 2022. Remember- this mean you have the option to stop paying your student loans at no penalty or you can make payments towards your principal balance (the amount owed without interest/fees). On August 6th, 2021, The Department of Education stated this will be the final extension that will allow borrowers to prepare for the resumption of student loans payments. That leaves four more months of potentially no student loan payments if you choose that route. What will you do with those funds? If you haven’t opened an investment account, use that money to do so now. I can’t stress the importance of just getting started. A high-yield savings account isn’t a bad decision either, but keep in mind savings accounts tend to pay way less in interest for holding onto your cash. Look at it this way- Today the S&P 500 (a market cap- weighted index of the 500 largest publicly traded companies in the U.S. ) is up 18.97% YTD. According to bankrate.com, the average interest rate for a savings account if .06%. Savings is definitely a safer and less risky way to reserve funds, but investing will result in the most wealth accumulated overtime. The numbers are there.
The Wrap-up
I’m getting this blog post out a lot later than what I would’ve liked to. Don’t worry, October will be more timely. Just a mini update on me- The Women Empowered by Byline (WEBB) has asked me to do a book review for one of my favorite books and I couldn’t be more excited! I’ll be reviewing “Earning It” by Joann S. Lublin. The book review takes place Thursday, September 30th at 5PM CST. This book was very influential and inspirational in my career and I think everyone should read it! I’ll be sure to share my review during my next post. I’ll see you guys back here next month! Happy National Hispanic Heritage Month!