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Hello there!! |
Yesterday something happened that hasn't happened in THREE YEARS… And 3 years ago we were still kinda in the COVID era 😭 |
So this isn't exactly the greatest news in the world, BUT it actually affects your money quite a bit, so we gotta talk about it. |
The Federal Reserve raised interest rates… So what does that mean for YOU?? |
In the simplest terms: borrowing money just got more expensive. |
Mortgages. Car loans. Personal loans. Credit cards. Business loans. Pretty much anytime you're borrowing someone else's money, higher rates can mean paying more to borrow it. |
BUTTTTTT there's another side to this. |
If borrowing money gets more expensive... saving money can actually get BETTER! 👀 |
So let's talk about the bad news first, and then I'll show you how to actually take advantage of the good news :) |
BAD NEWS #1: Borrowing Money Just Got More Expensive |
When the Fed raises interest rates, it basically makes borrowing money more expensive. |
So if you're planning on borrowing money soon... PAY ATTENTION TO THE INTEREST RATE!!! Even a small difference in your rate can mean paying hundreds or THOUSANDS more over the life of a loan.
There are also credit cards that have something called a VARIABLE interest rate. If you have one of those, it’s about to go up a little bit 🙃 |
BAD NEWS #2: Inflation Is STILL Being Annoying |
Okay this part is important because I don't want you guys getting this backwards. The Fed didn't raise rates to MAKE everything more expensive. They raised rates because inflation is ALREADY too high. |
Think of the economy like a car that's going a little too fast. The Fed just tapped the brakes. |
Higher rates make borrowing more expensive, which can make people and businesses borrow and spend less. Less spending can cool things down, which can hopefully help bring inflation down.
BUT there’s also another side of things where businesses now have to pay MORE to borrow (because the rate just went up) so they may raise prices to make up for the interest jump. Things can literally go either way here 🤦 |
So essentially, the people in charge of interest rates are saying “Yeahhhh... prices are still rising too fast. We gotta chill this shit out.” |
BUT WAITTTTTT!!!! I actually have some good news ❤️ |
GOOD NEWS: Saving Money Just Got Sexier |
This is the side nobody talks about!!! |
When interest rates are higher, banks make more money… What happens when banks make more money?? They have more to give to their customers! |
You should start seeing banks offer higher interest rates in the coming weeks. And you guys know we ALWAYS talk about High-Yield Savings Accounts here. It’s probably annoying at this point but we don’t care 😂 |
In our eyes, a HYSA is like the calorie deficit of the money world. |
When you're trying to lose weight, you can buy supplements, drink green juice, shop at Whole Foods, do whatever fancy shit you want… but none of it replaces the foundation: you have to be in a calorie deficit. |
Same thing with your money. |
You can invest, buy real estate, chase credit card points, do all the fancy money shit you want. But the cash sitting in your bank account should be making interest and if it’s in a HYSA, it makes a shitload. |
The Responsible Adult move: Open a High-Yield Savings Account for the love of god. 😭 |
If you've been scared to open one before, I'm sorry, but it's time to grow up. |
Inflation is eating away at the value of our money. Earning interest helps you fight back. |
TAP HERE FOR A LIST OF OUR FAVORITE HIGH YIELDS |
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What Would Stack Do? |
Stack knows that he can’t control what the world does. Obviously, we’ve learned, the world is a roller coaster that never seems to stop. |
But what he CAN do is control what he does with his money. |
Don't let this interest rate bump put you into a panic. Does it suck? Sure. But what are we gonna do? 😭 |
Ten years from now, you don't wanna be sitting around saying “Man, I wish back in 2026 I would've started saving more, or doing XYZ with my money” |
It's always shoulda, woulda, coulda. |
You don't have to fix everything today. Just do SOMETHING. Open the account. Move some money. Pay a little extra toward the debt. |
Your future self will be really happy you did. ❤️ |
Mikey (& Stack 🦥)
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