💰Flying's getting better

In today's issue, we'll explore the latest trends and developments shaping the financial landscape, from consumer spending habits to new regulations impacting various industries. Whether you're looking to stay informed about managing your finances, understanding economic shifts, or exploring money-saving tips, we've got you covered. Let's dive in and uncover valuable insights to help you navigate your financial journey with confidence and clarity.

- Milan

IN THE KNOW

Make Money Off Flight Mishaps 

The Biden administration has implemented rules requiring airlines to issue automatic cash refunds for canceled or significantly delayed flights and to enhance fee disclosures for services like baggage handling or reservation cancellations. Airlines must now provide prompt cash refunds within a few days for canceled flights or substantial delays, defined as three hours for domestic flights and six hours for international ones. Passengers have the option to decline alternative flight offers or travel credits. Additionally, the rules cover refunds for checked-bag fees if bags aren't delivered promptly and fees for services not provided, like seat selection or internet access.

Complaints regarding refunds surged during the pandemic, prompting the administration to enact these regulations. Airlines are now mandated to disclose upfront fees for checked and carry-on bags, reservation changes, and cancellations, ensuring transparency in pricing. The new rules also guarantee passengers a seat without extra charges, though airlines retain the option to offer paid seat selections. These measures aim to save consumers over $500 million annually and are part of the administration's broader effort to combat what it calls "junk fees".

To learn more about how to save on flights, click here.

Credit Scores Are Falling 

Consumer reliance on credit cards has been on the rise, potentially leading to a decline in national credit scores, a shift observed for the first time in over a decade. According to FICO, the average credit score fell to 717 from its peak of 718 in early 2023. Factors such as high interest rates and increased prices have contributed to elevated credit card balances and a rise in missed payments, with the average credit card utilization reaching 35% as of October. The reduction in savings reserves, previously bolstered by government stimulus programs during the pandemic, has left consumers facing credit obligations without the cushion of additional financial aid, prompting concerns about maintaining creditworthiness.

Understanding the importance of credit scores is crucial for navigating financial transactions, as higher scores increase the likelihood of loan approvals and access to lower interest rates. A credit score above 670 is generally considered good, with scores over 740 regarded as very good and anything above 800 considered exceptional. Learn how you can increase your credit score easily here. 

MONEY MYTH OF THE DAY

“You need a high income to build wealth”

Many people believe that having a high salary automatically translates to building wealth, but this is a common misconception. While a good salary certainly helps, wealth accumulation depends on various factors beyond just how much money you earn. It's not just about what you make; it's about what you keep and how you grow it. Often, people with high salaries fall into the trap of overspending and failing to save and invest wisely, ultimately hindering their ability to build long-term wealth.

Building wealth requires careful financial planning, disciplined saving, and smart investing, regardless of income level. It's essential to prioritize saving a portion of your income, regardless of how much you earn, and to invest those savings wisely to generate additional income and grow your wealth over time. By debunking the myth that a high salary alone leads to wealth, individuals can focus on adopting sound financial habits and making strategic financial decisions to achieve their long-term financial goals.

If you don’t know where to start, click here.

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