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  • Joined: July 9, 2024
  • Articles: 975

Side Hustle Nation: Inflation Drives Americans to Seek Second Jobs

As of May 2025, nearly one in five U.S. workers have had to take on side jobs to manage the financial pressures caused by stubbornly high inflation. Rising prices on essentials like rent, groceries, and healthcare have pushed many families to look for extra income beyond their main job. Additionally, over half of working Americans report they are considering or open to getting a second source of income soon. This trend persists despite reports of stable employment numbers overall, underscoring that wages have not kept up with the sharply rising cost of living. Key reasons behind continued high prices include the Federal Reserve's cautious adjustments to interest rates, making inflation and living costs difficult to control.

H.R. 1 Tax Reform: Empowering Businesses, Easing Burdens

On May 22, 2025, the U.S. House of Representatives passed a significant tax reform bill known as H.R. 1, or the "One Big Beautiful Bill." This bill focuses on several important changes affecting taxes for both individuals and businesses. For example, it permanently extends and expands a tax deduction known as the Qualified Business Income (QBI) deduction, helping small business owners keep more of their earnings. It also significantly raises the estate and gift tax exemption to $15 million beginning in 2026, which means fewer people will have to pay taxes when inheriting money or property. Additionally, the bill raises the maximum amount taxpayers can deduct for state and local taxes (SALT) to $40,000 in 2025, with further increases through 2033. Supporters of the bill believe it will boost the economy by helping businesses succeed and benefiting individuals, particularly those living in states with high taxes. However, critics worry it will worsen the federal deficit, meaning the government might spend more money than it collects through taxes.

2025 Wallet Watch: Americans Cut Fun Amid Financial Crunch

In 2025, more than half of Americans are reducing their spending on fun activities such as dining out, travel, and entertainment, according to a Bankrate survey. This happens as people try to prepare for economic uncertainty and tackle increasing credit card debt. Compared to last year, more families are choosing careful budgeting instead of spending money as a response to stress. While financial pressures like fears of a recession are a big reason for these changes, other personal or lifestyle factors may also be playing a role in people tightening their budgets.

Inflation Anxiety Mounts Amid Tariff Turmoil and Fed’s Rate Dilemma

In May 2025, the U.S. economy is struggling with rising inflation concerns and uncertainty around tariffs set by former President Trump. Federal Reserve officials are increasingly worried inflation may last longer than originally expected. Despite Trump's claim that inflation isn't an issue and his call for lower interest rates, the Fed has so far chosen to keep the key rate steady at around 4.3%. Additionally, Trump's latest tariffs are much higher than those from his first term, potentially causing greater economic stress and uncertainty moving forward.

Pig Butchering Scams: Fake Crypto, Real Losses

"Pig butchering" scams are sophisticated online fraud schemes that trick individuals into investing in fake cryptocurrencies by building trust and forming personal relationships. Scammers typically approach victims through social media, messaging apps, or dating sites, establishing a friendly or romantic connection before persuading them to invest. Victims initially see what seem to be substantial gains, encouraging them to invest even larger sums of money. When individuals attempt to withdraw their profits, they discover their investments are entirely fake and their money has vanished. These scams have cost victims millions of dollars, prompting national authorities like the U.S. Treasury Department to target companies behind fraudulent websites, such as Funnull Technology Inc., in an effort to reduce the growing impact of cyber-enabled financial crimes.

Mortgage Rates Climb Higher, Squeezing Homebuyers’ Budgets

Mortgage rates have increased slightly this week, putting more financial pressure on homebuyers as the average 30-year fixed mortgage rate is now around 6.99%. Higher mortgage rates make monthly payments more expensive, making it harder to buy a home, especially given current high prices. This rise is partly due to economic uncertainties, including ongoing tariff discussions and government policy debates, as investors become cautious. Although home prices remain high, there's some good news: more homes are now available for sale, giving buyers a little more room to negotiate deals. Someone looking to buy a home right now will need solid financial planning to navigate these higher rates and uncertain economic times.

Tax Break Boost or Budget Bust? Congress Debates “One Big Beautiful Bill”

In May 2025, Congress is considering a major bill called the "One Big Beautiful Bill," which aims to permanently continue the tax cuts from 2017, known as the Tax Cuts and Jobs Act (TCJA). The bill offers new perks, such as removing taxes on tips, overtime pay, and interest on car loans, while increasing the SALT (state and local tax) deduction limit to $40,000 for higher-income taxpayers. Supporters argue these changes provide financial relief to working families, especially as many Americans face rising costs due to inflation. However, critics worry the bill could add significantly to the national deficit and mainly benefit wealthier taxpayers. With its narrow passage in the House and ongoing debates, the bill's future in the Senate remains uncertain.

2025 Wallet Watch: How Inflation Is Reshaping American Spending

In 2025, financial pressures such as rising inflation and economic uncertainty are significantly changing how Americans live and spend their money. Families now pay more attention to necessities like rent or mortgage, healthcare, and groceries, cutting back on extras such as travel, eating out, or entertainment. Many people are turning more frequently to credit cards to cover expenses, as shown by a significant increase in credit card use while cash payments continue to decrease. These challenges encourage Americans to be more careful and thoughtful about how they manage their finances, saving more and spending cautiously.

$2,000 and Secure: The Small Cushion with Big Financial Impact

Recent research from Vanguard shows that having at least $2,000 saved for emergencies is a key factor for achieving financial well-being, even more important than higher salaries or large investment accounts. As economic challenges continue—with daily expenses rising faster than many salaries—financial stress has become common, especially among middle-class families. Vanguard emphasizes that building a relatively modest savings cushion of $2,000 offers significant protection, enabling people to better manage unexpected costs and gain peace of mind during uncertain financial times.

Swipe With Caution: The Rise of Social Media Investment Scams

Investment scams on social media have become a growing concern, impacting millions of Americans who rely on digital platforms for financial advice and opportunities. Scammers often impersonate friends, family, or trusted influencers by hacking or copying their accounts, using personal connections to create believable investment offers. These fraudsters lure in victims by promising quick profits, guaranteed returns, or low-risk ventures through direct messages, posts, or comments. Experts urge social media users to be skeptical of unsolicited financial advice, verify the identity of individuals promoting investments, and avoid opportunities that seem too good to be true.

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