Pay Raises, Bitcoin Craze, and Tariff Tremors. Financially Enabled #81 June 5th, 2025
Issue-at-a-Glance
Paychecks are finally outrunning prices in the “Goldilocks grind,” while Bitcoin ETFs suck in record billions—even as Dave Ramsey throws shade. Next year’s Social-Security COLA may barely buy brunch, the yen’s roller-coaster hints at tariff turbulence, and Brussels loosens its AI-Act corset so fintech bots can sprint. Dive into the numbers, pocket the tips, and tell us which story sparks your next money move.
Payroll Gains But Paychecks Pull Ahead of Prices
The jobs engine is idling slower, yet wage growth just slipped into the passing lane.
April’s payrolls added a modest 177 k positions while unemployment held at 4.2 %. But inside the fine print lives the real plot twist: average hourly earnings climbed to $36.06 and now run 3.8 % higher than a year ago, beating the latest 2.3 % CPI headline. That combo—cooling hiring, hotter pay—has economists dubbing 2025 the “Goldilocks grind”: not too weak to scream recession, not too hot to spook the Fed. Healthcare and transport scored most of the gains; federal head-count shrank. For workers juggling rate-shock credit cards, every extra dime per hour matters. Notice any raise (or pink slip) ripple in your shop? Hit reply and spill. bls.govbls.gov
Logic: real earnings up means debt pay-down gets easier just as lenders eye rate cuts. Lifestyle: a 2 % bump on $60 k salary frees roughly $100 a month—enough to erase a streaming bundle or boost your emergency stash. Action: run a quick budget audit, lock high-yield savings above 5 %, and channel any new paycheck wiggle room toward the highest-interest balance first. Future you will toast present you.
Bitcoin ETFs Bag Billions, but Ramsey Still Says “Run”
Wall Street can’t stop main-lining crypto, even as the personal-finance hall monitor wags his finger.
BlackRock’s iShares Bitcoin Trust vacuumed up $6.35 billion in May—its fattest month yet—helping spot-BTC ETFs notch $9 billion in five weeks and pushing bitcoin back above $105 k. Bulls cite institutional FOMO and analyst targets as high as $250 k by late 2025. Enter Dave Ramsey, megaphone in hand, calling crypto “volatility on steroids” and urging investors to stick with boring index funds they actually understand. Fans clap back: “My ETF is in a brokerage, Dave—not under my mattress.” Whether you’re cheering the moonshot or clutching your 401(k), tell us: are you buying, trimming, or just popcorn-watching?
“Volatility isn’t wealth—discipline is.” —D. Ramsey
Numbers: a 5 % BTC allocation in a 60/40 portfolio has juiced YTD returns by ~1.3 pts, but at triple the standard deviation of gold. Feel-factor: some savor the adrenaline; others sleep better owning dividend ETFs. Move: if you must dabble, cap exposure at money you can torch without tears and park the rest in assets that won’t ping you at 3 a.m.
2026 Social-Security COLA Poised for “Barest Bones” 2.4 %
Next year’s benefit bump might not even cover your grocery-cart splurge.
The Senior Citizens League’s latest crystal ball pegs the 2026 cost-of-living adjustment at 2.4 %, the puniest raise since 2021 and a far cry from the pandemic-era 8.7 % windfall. Blame mellowing inflation: April CPI notched just 0.2 %. Trouble is, seniors’ real-world costs—think housing, car insurance, cardiology co-pays—still sprint ahead. Roughly 73 % of retirees lean on Social Security for half their income, so a skimpy COLA lands like decaf at dawn. Feeling the squeeze or plotting a side hustle? Drop your survival tip for fellow readers. marketwatch.com
Head math: a 2.4 % bump lifts the average $1,976 check by ~$47—barely a tank of gas. Heart check: shrinking purchasing power erodes dignity faster than dollars. Playbook: review Medicare Advantage vs. Medigap, explore part-time “consult-from-couch” gigs, and funnel any tax-refund crumbs into an HSA or Roth for extra inflation armor.
Yen Jitters Signal Tariff Turbulence (Economic Conflict)
Tokyo just flashed a yellow card at currency bears as Washington rattles its tariff sabers.
With the yen flirting near ¥160 per dollar, Japan’s finance minister warned speculators the BOJ “won’t hesitate to act.” The yen’s slide mirrors a greenback whipsawed by Trump-era tariff escalations—steel, aluminum, you name it—now stoking global growth fears and sending investors into safe-haven whiplash. A dollar pullback would ease imported-fuel bills for U.S. households but hammer Japanese consumers already shell-shocked by food inflation. Exporters cheer, tourists win, but policymakers dread unchecked volatility. Ever timed a gadget purchase—or vacation—around FX swings? Share your stealthy currency hack. reuters.comreuters.com
Strategy: travelers eyeing Tokyo Olympics tickets (yes, still resale hype!) might hedge with a prepaid yen card today. Businesses sourcing parts from Japan should lock forward contracts before any BOJ “surprise.” Investors: diversify Asia-ex-Japan ETFs; yen spikes often dent Nikkei stocks but buoy domestic bond funds.
EU Loosens AI-Act Reins; Fintechs Breathe Easier
Brussels just promised fewer hoops for your robo-advisor to jump through.
The European Commission is crowdsourcing ideas to trim red tape in its brand-new AI Act, especially for startups wrestling with costly audits and “high-risk” labels. EU tech chief Henna Virkkunen says lighter touch rules will keep innovation from bolting to the U.S. or Dubai. Banks and payment apps applaud: complex model cards and bias tests had threatened to slow product launches by months. Critics counter that watering down safeguards may expose consumers to algos gone rogue. Where’s the sweet spot between cool features and creepy data grabs? Let us know your two cents (human-written, please). reuters.com
Biz-sense: early-stage fintechs save six figures in compliance costs, stretching runway by 3-6 months. Consumer angle: faster rollouts of AI budgeting bots and instant-loan engines—just demand clear opt-outs. Next step: if you’re shipping AI-powered tools to Europe, bookmark the draft guidance and budget for a “brass-tacks” gap analysis before the final rules hit in 2026.
Enjoy this brew of wage wins, crypto drama, and policy plot twists? Forward it to a friend who loves money talk without the snooze factor. Hit reply with your biggest finance head-scratcher—we’re teeing up a myth-busting special on hidden bank fees next week. Till then, keep learning, laughing, and leveling up your wallet wins!
"Unlocking Abundance: Overcoming Scarcity and Embracing Personal Growth" by Lewis Howes
Early Life Challenges and Healing: Lewis Howes shares his painful childhood experiences, including sexual abuse and his brother's imprisonment, which led to feelings of unworthiness and insecurity. He explains how these experiences shaped his beliefs and struggles with self-doubt.
Scarcity Mindset: Despite being financially broke and living in scarcity during his early adulthood, Howes began to shift his mindset by obsessing over personal growth and financial knowledge. He emphasizes how feelings of scarcity can affect both financial and emotional well-being.
Overcoming Fear and Building Self-Worth: Howes highlights overcoming personal fears such as public speaking, reading, writing, and even salsa dancing. These efforts were crucial in building his confidence and shifting his belief system from scarcity to abundance.
Abundant Life Despite Financial Struggles: Lewis shares how, even when financially broke, he felt rich inside due to the progress he made in building his self-worth and emotional well-being. He advocates for living abundantly by focusing on growth and opportunities beyond money.
Four Ways to Live with Money: Howes identifies four approaches to money: living in scarcity, learning, creating, and experiencing. His goal is to help others assess what's blocking them from feeling free and abundant, regardless of financial status.