💰Joining the ranks of New York's millionaires

Welcome to this week's edition of Hack Your Money! In this issue, we'll dive into some of the latest developments shaping the financial landscape, from home ownership to airline compensation to New York’s milionnaires and how you can become one too. Stay tuned for insightful analyses, actionable tips, and curated summaries of stories that will keep you informed and empowered on your financial journey and if you wanna skip straight to the the good parts, click here.

- Milan

IN THE KNOW

Housing: To Rent Or Buy? 

The latest report from the Federal Reserve Bank of New York gives us the scoop on what people are thinking about housing. According to the SCE Housing Survey, folks seem to be feeling pretty good about home prices going up in the next year, but not so much for the next five. Rent prices are also expected to rise in the coming year, although things are looking pretty steady for the next five years.

But here's the kicker: renters are finding it tougher to snag a mortgage these days. Many are saying it's pretty hard to get one, which is making them less hopeful about ever owning a home. On the other hand, homeowners are cautiously considering refinancing, but not as much as before the pandemic hit. And everyone's keeping a close eye on mortgage rates, which are expected to keep climbing. 

While many factors contribute toward the big decision to buy a house, there’s one that should matter more than the rest. A healthy credit score will make a housing loan so much more affordable so prioritize it if homeownership is on the books for you in the near future.

Qantas Is Going Under 

Qantas Airways, Australia’s national carrier, has reached an agreement to compensate customers and settle a lawsuit over selling tickets for thousands of canceled flights. The Australian Competition and Consumer Commission (ACCC) accused the airline of misleading conduct for advertising more than 8,000 flights that were already canceled between May 2021 and July 2022. Qantas has agreed to pay an AU$100 million ($66 million) fine to the Australian government and an estimated AU$20 million ($13 million) to over 86,000 affected customers, pending approval by a Federal Court judge.

In addition to the financial penalties, Qantas admitted to misleading customers until August of the following year. The lawsuit followed Qantas' record profit announcement for the fiscal year ending June 30, 2023, signaling a significant financial turnaround for the airline after years of pandemic-related losses.

In America, if you’re ever bumped from a fully booked flight, the U. S. Department of Transportation has a number of safety measures that protect your rights as a passenger and compensate you for any lost time. If you’re planning to travel any time soon, make sure you update your savings goals and budgets in your Ultimate Budget Planner.

Bumping Into Millionaires 

Despite discussions of a wealthy exodus, New York City has seen a surge in millionaires over the past decade, outpacing other major global financial hubs. According to a report by Henley & Partners, Manhattan now boasts nearly 350,000 millionaires, up 48% from ten years ago, with approximately one in every 24 residents having a net worth exceeding seven figures. Moreover, New York remains the world's wealthiest metro area, with its residents collectively holding over $3 trillion in wealth, surpassing other prominent cities like London, Hong Kong, and Moscow.

While some cities experienced declines in millionaire populations, New York City has maintained its status as a hub for the ultra-rich, boasting 60 billionaires and 744 individuals with investable wealth exceeding $100 million. This data emphasizes the city's enduring appeal to achieving the American Dream.

Becoming a millionaire, or even better, gaining financial independence, can be achieved by anyone if they do the right things early on in their lives. By 18, you should be getting ahead of your money on all fronts so that by retirement, you will be financially stable. Don’t know where to start? We got you. 

MONEY MYTH OF THE DAY

“Renting Is Throwing Money Away”

There's an idea floating around that renting is like throwing money out the window, but let's break that down. Sure, when you rent, you're not building equity like you would with a mortgage, but renting has its perks. One biggie is flexibility – you can pack up and move at the end of your lease without the hassle of selling a house. Plus, no worrying about pesky maintenance or property taxes – that's on the landlord. Sometimes, renting can even save you a bundle, especially in places where home prices are sky-high compared to rental rates.

Now, let's talk about homeownership costs – they're no joke. Mortgage payments, property taxes, insurance, maintenance – it all adds up fast. And let's not forget the hefty down payment and closing costs you need upfront. Renting? Well, it's usually more budget-friendly in the short term. Plus, if you're not sure where life will take you, renting keeps your options open. So, is renting just throwing cash down the drain? Not necessarily – it depends on your situation and what you value most.

VIDEOS YOU MAY HAVE MISSED THIS WEEK

Here are the top videos you loved the most this week. Which one was your favorite?