Love, Money + Real Estate #17

Keeping your spirits up and your glass full

Greetings.

The world is a dark place. Is there any hope anywhere?

I got this feedback after last week’s newsletter. The economic forces that have come together this summer do feel as explosive and unpredictable as the weather we seem to be experiencing. Or, politics.

But, there are some glimmers of light here and there, especially if you turn away from the stock market. This week, I thought I’d focus on some of the more positive economic news out there. Let’s see if it helps everyone feel a little more optimistic about where we’re going.

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The Giving Dress

I love this story. Gwendolyn Stulgis wanted to do something with her wedding dress that had meaning. Inflation and a pandemic has taken its toll on the cost of a wedding, she noted. With the average wedding dress approaching $1,800, why shouldn’t she give someone the chance to enjoy a dress she would no longer use?

Gwendolyn Stulgis

So, she put up a notice on Facebook, which has bloomed into a global wedding dress giveaway. Shared Dream Dresses allows you to make a pitch for a wedding gown. Once you win it, it’s yours to do with as you like: you can tailor it, dye it, or (hopefully) give it away to the next person.

Reading about this Facebook group made me think about my own wedding dress. It was actually an off-white lace, black-tie dress with sparkles. I wore it to my wedding, and then to several other weddings. All told, I think I wore it 5 or 6 times. But, since then, it’s been sitting in my mother’s closet. It’s still pretty modern. Perhaps it’s time to see if there’s someone else who would enjoy wearing it.

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Pandemic Pets and their Parents

Twenty-three million households added pets in the pandemic, according to the American Society for the Prevention of Cruelty to Animals.

According to the American Pet Products Association, some 90.5 million households have a pet, which equates to about 70% of all U.S. households. The amount that U.S. pet parents spent in 2021: $123.6 billion, up from $103.6 billion in 2020. An understandable jump, given all the new pets that need to be fed, clothed, given treats and taken to the vet. Here’s how it breaks down:

Other services includes boarding, grooming, insurance, training, pet sitting and walking and all services outside of veterinary care, according to the APPA

But, prices are going up. By the end of 2022, it’s possible that U.S. households will spend close to $200 billion on their pets, not including any vet bills.

What got me thinking about this was a walkaround one of my favorite retail stores, Costco. Ten years ago, Costco sold pet products and it was a small part of one aisle. But today, every Costco has at least a full aisle of pet products: food, pet beds, toys, etc. My husband, Sam, and I were discussing how you can almost map out the economy based on how much space Costco assigns to that category.

Almost. In the meantime, you better tip your dog walker and kennel owner because if you ever have to go back into work, there’ll be stiff competition for their time, attention and lodging spaces.

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Living La Vida Loca

According to a Lending Club survey from June, some 58% of Americans are living paycheck to paycheck and a full third of those earning $250,000 per year are as well. That survey didn’t break out the answers regionally, which made me wonder how much it would take to actually be comfortable living in different parts of the country.

Fortunately, Charles Schwab’s Modern Wealth Survey for 2022 breaks out the cost of living in 12 major metropolitan areas.

In San Francisco, the survey found you’d need an average of $1.7 million to be financial comfortable while in Denver, you’d only need $671,000. The amount you’d need in the other metro areas: New York City ($1.4 million), Southern California, including Los Angeles and San Diego ($1.3 million), Seattle ($1.2 million), Washington, D.C. ($1.1 million), Chicago ($956,000), Houston ($919,000), Boston ($892,000), Dallas ($840,000), Atlanta ($771,000), and Phoenix ($747,000).

Interestingly, the pandemic has changed respondents’ minds on what it takes to be wealthy. In 2018, survey respondents thought you needed an average of $2.4 million to be wealthy, and $1.4 million to be financially comfortable. In 2022, it takes an average net worth of $2.2 million to be wealthy and an average of $774,000 to be financially comfortable.

The survey also asked Americans whether their personal values guide their life decisions and financial investing. The vast majority said yes, particularly those who are Gen Z:

Almost three-quarters of Americans (73%), say their personal values guide how they make life decisions more today than they did two years ago, and nearly an equal number (69%) say that supporting causes they care most about are a top consideration when it comes to their financial decisions, according to Schwab’s sixth annual Modern Wealth Survey, an examination of how Americans think about saving, spending, investing and wealth.

But over time, personal values seems to take a backward seat to something else. Reality, perhaps? While 82% of GenZ let their personal values guide how they make life decisions today (versus 2 years ago), just 64% of Baby Boomers do.

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Something new to wine about

Apparently, there’s something called Orange Wine. And, no, it’s not made with oranges.

Notes of orange are pretty common, and can range from a light tangerine to a deep blood orange, Holly Berrigan, founder of MYSA Wines, said. One reason for the huge range in flavor of different orange wines is that there’s a lot of variation in how they’re made — sometimes winemakers allow skin contact for just a few hours, but it can also happen for months.

So, move over red, white and rose. There’s a old/new kid on the wine block.

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What’s your loyalty worth?

With Inflation Soaring, Half of Americans Think Loyalty Programs Are More Important Than Ever.

• With inflation soaring, half of Americans think loyalty programs are more important than ever. 

  • 57% of those making $100,000+ per year and 56% of millennials say these programs have become more critical.

• 80% of Americans are members of at least one loyalty program. 

  • 65% of Americans are members of loyalty programs for miscellaneous retailers like Walmart and Target, e-tailers like Amazon, and drugstores like CVS and Walgreens. (Why drugstores? Perhaps this: If you got your Covid shots or boosters at a CVS or Walgreens, you needed to register online.)

• Loyalty programs incentivize shopping, but customers don’t always spend more.

• Consumers place more weight on rewards than security. 

  • 75% say they’ll join a rewards program if they can earn points.

  • But, if the rewards fade, more than half say they’d leave the program.

  • Just 41% say they’d leave if there was a security breach.

• Half of all loyalty program members sign up at the checkout counter.

  • Which explains the pressure you might get as you’re reaching for your credit card. 

What’s your favorite loyalty program? Click on the button below and leave a comment:

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Great Reads

Here’s the latest from ThinkGlink.com, LawProblems.com and BestMoneyMoves.com:

The Pros and Cons of Condo Living

Is this Home Fraud Protection or a Scam?

The Benefits of Automatic Water Shut Off Valves

3 Ways to Attract (and Keep) Gen Z and Millennial Employees

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On a Personal Note…

I want to thank everyone who took the time to write after my newsletter about the July 4th shooter in Highland Park. This has been a devastating two weeks, and most of the people I know are still reeling from it all. Every day, it seems that we know more people who were shot and come a little closer to those who died.

It’s hard to get my mind around the idea that someone took an automatic rifle up on a rooftop and began shooting indiscriminately. I simply can’t comprehend that sort of madness and hatred of humanity.

As I write this, 8-year old Cooper Roberts is still fighting for his life. A GoFundMe has raised over $1.5 million for his care. But his life, and that of his twin brother and their mom, who were also injured, will never be the same.

I’ve been in cities where you stand in line next to a random person packing a serious weapon. It’s terrifying, especially since you don’t know if they really know how to use it or if they will for some perceived slight or accidental bump.

That isn’t the way I want to live my life.

What’s it going to take for all of us to live in peace, with respect for our neighbors?

Thanks for reading. Peace,

Ilyce