Cold hard cash

In an era of hyper-digitalization, there's a palpable sense of security in what’s real. Tactile. Owned and earned. 

At least, that’s what the 28% of Americans who “feel safer” keeping money in cash seem to think. But hey, every wallet has its limits: 51% of consumers also say they use digital payment apps every week. (More on both below.) 

Stack these cash transactions against national credit card balances, which just topped $1 trillion* for the first time in history. All together, credit card holders have $3.6 trillion in additional credit availability, indicating that consumer debt may continue to climb. 

– The Editors

🤑 What do you pay for in cold hard cash?

• Tips
• Huh? I never use bills
• Scratch-off lotto tickets
• Lunch bill
• All – everything in a day’s receipt 

Take our one-question poll.

WORK

Away, but on the clock: Today’s youngest workers may be setting themselves up for burnout; some 35% of Gen Zers say they feel guilty* not working when they’re on vacation, versus 29% of Americans as a whole. But career experts say unplugging is a great way to get fresh ideas. (Take a cue from this CEO, who took 30 OOO days* to explore Paris.) 

We(hope to)Work: Once a startup darling, WeWork, Inc. has now expressed “substantial doubt” in its ability to continue operating. The company has promised to focus the next 12 months on reducing rental costs, negotiating more favorable leases, increasing revenue, and raising capital. This may be a symptom of remote-work headwinds, including rising office vacancies and declining property values. One study estimates that the nation is facing a $500 billion value destruction* in this sector following the pandemic.   

Cashing out: The 401(k) can be a pillar of wealth building. Just ask the millionaires who use the Empower Personal Dashboard™; retirement accounts – like 401(k) plans and IRAs – make up 55% of high-net-worth individuals’ overall wealth. But some people may be chipping away at their long-term savings when they switch jobs and cash out, facing associated taxes and penalties. While Gen Z accounts for nearly 40% of new hires, nearly as many (37%) left their jobs  last year – often shuffling their retirement plans, too. Get tips on what to do with your workplace retirement account when you move on.

MONEY

Today's reigning asset class is ... 

... cash, according to the nearly 1 in 5 (17%) of Americans who told us “cash is king,” perhaps in loyalty to its convenience and minimal risk.   

Inflation is ebbing, but prices on daily commodities like groceries are still higher than they were before the pandemic; since February 2020, the cost of food at home is up more than 23%*. 

Enter cash, which plays an important role in a diversified financial strategy: It’s useful for everyday spending, as well as emergency savings and short-term financial goals. 

👛 Get the POV of an Empower financial professional on how much cash to consider keeping on hand.

LIFE

Feeling like Ri¢hie Ri¢h 

Are you rich? To some degree, it’s all a matter of perspective (even if you don’t have your own theme park*). 

America’s “regular rich” don’t feel wealthy, according to a new Bloomberg survey. Of high-income earners – those who make at least $175,000 a year, or roughly the top 10% of U.S. tax filers — a full quarter describe themselves as “very poor,” “poor,” or “getting by but things are tight.” Half say they're just “comfortable.” A majority of high earners say they worry about money. 

Very likely, the mindset of the mass affluent hinges on where they live; housing costs vary widely according to your location, location, location.

That’s why thoughtful financial planning can help set you up for success – and perceived prosperity. 

💵+🧠 Know someone who’s just getting started? Share tips on financial planning for young adults. 

PLAY

Debit goes digital   

The definition of “cash” now extends beyond physical dollar bills, and alternative payments are on the rise globally*. 

Consumers we recently surveyed say the appeal of digital payments lies in a few areas:   

• Ability to use anywhere (69%)
• Quick and seamless payment process (66%) 
• Contactless payments (59%) 

On average, Americans stow $247 in their digital wallets to make purchases and manage spending. 

For some, digital payment platforms also serve a money-based social network: 22% of Americans confess to peeking at others’ financial activities through their apps. Gen Z leads the peep with a 64% higher likelihood of tracking other's spending habits.

As of August 17, 2023, EAG does not hold shares of WeWork Inc. (WE) in advisory client accounts.

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