★ This Week in #FinancialGossip

Posted June 15, 2017 6:00 am by with 3 comments

financial gossip

This is part of our Financial Gossip series, curated by our friends at Invibed. Every week, they scour the news to bring us the most interesting stories around money. Here are this week’s gems :)

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clueless shopping gif

The top 1% are now spending significantly less.

Material objects have long been a way for the rich to show their status, but luxury goods are now mass produced and more accessible, blurring the lines between your middle-class consumer and America’s elite.

While yes, nice cars and oversized homes are still ways to let everyone know how deep your pockets really are, the expensive purse and shiny watch just won’t cut it anymore.

There has been a shift from conspicuous consumption to inconspicuous consumption, or spending on “services, education, and human capital investments over purely material goods.”

While middle-income groups continue to spend the same amount of money on material goods, the top 1% are now spending significantly less.

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wrestler make that money

Forbes released its list of the Highest Paid Athletes of 2017 and there’s some serious $$ going around. $3.11 billion among the 100 athletes, to be exact.

Leading the pack is Cristiano Ronaldo, who made $93 million between his Real Madrid salary and endorsement deals. This is his second year on top, a spot that was previously reserved for Tiger Woods (now #17) and Floyd Mayweather (not ranked this year, although a Mayweather-McGregor fight could change that in 2018).

Where is the rest of the athletic wealth distributed? 32 are in the NBA, 63 are American, and the average age is 31.

Forbes bases their list on salaries and bonuses from June 1, 2016 to June 1, 2017 plus endorsement income.

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cat typing gif

Southern Oregon University gets scammed out of $1.9 million

We’ve all forgotten to pay a bill at some point in our lives, but have you ever paid the wrong person?

Southern Oregon University wire transferred $1.9 million to the construction company that was building its new recreation center. Only the company never received the money.

It was sent to a fraudster who tricked the university using social engineering and e-mail spoofing. The FBI is investigating the sitch, but it’s actually not an unusual case.

Business Email Compromise scams or BECs accounted for 22,000 of the crimes the FBI investigated during 2013 and 2016. The total losses seen were just under $1.6 billion and the scams are getting more expensive — up 2,370% from January 2015 to December 2016.

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need money gummy bears

Rapper Azealia Banks gets sued for $130,000 in unpaid credit card debt.

Banks wasn’t shy about saying she was broke with expensive taste but the suit for $130,000 in unpaid credit card bills kind of confirms it.

Papers were filed by City National Bank in Manhattan Supreme Court against the rapper who took out three lines of credit since 2012 for $78,827, $50,228 and $7,981.

We firmly believe that if you can’t control the money you have now, making more of it won’t help. So racking up $130K in debt over four years despite career success isn’t so shocking. What is surprising though, is Former VP Joe Biden’s niece who used someone else’s credit card to spend $110,000 at C.O. Bigelow Apothecary in less than two months.

Caroline Biden, 29, had permission to use the victim’s credit card to make a $672 purchase but decided to open a line of credit at the store as well.

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mindy gif

Are health insurance problems giving crowdfunding life?

Dan Saper, CEO of YouCaring, told Bloomberg, “Whether it’s Obamacare or Trumpcare, the weight of health-care costs on consumers will only increase.” At GoFundMe, medical is one of the largest fundraising categories.

In a NerdWallet study, GoFundMe indicated that of the $2 billion raised in the period analyzed, $930 million of it was from medical campaigns.

Helping people raise money is not a bad business to be in. GoFundMe takes 5% of each donation (however 2.9% of each donation plus an extra 30 cents goes towards payment processing and transaction fees).

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For past weeks’ financial gossip, click here.

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[All gifs by Giphy]

Jay is the founder of Rockstar Finance, and blogs about money over at BudgetsAreSexy.com. He loves all things finance, coffee, and hip-hop, and is the proud daddy of two beautiful little boys!

3 responses to ★ This Week in #FinancialGossip

  1. Mrs. Picky Pincher June 15th, 2017 at 9:07 am

    It’s really interesting to see how the 1% are spending less on material goods. I do think that money is better spent if it gives you the gift of time, which is what this sounds like.

    Reply

  2. FinancesWithPurpose June 15th, 2017 at 3:32 pm

    The scamming drives me nuts – I wish our government invested even more in stopping it. Scammers can steal just once – like that $1.9 million heist – and then live richly in most countries in the world for the rest of their lives. It makes scamming incredibly attractive. And often scammers here prey upon the elderly, widows, and those who are vulnerable. Or taxpayers, in this case…the government can be careless with our money. Then the scammer flies off to a beach in some country with no extradition treaty and lives a wild life. It’s sad.

    Reply

  3. J. Money June 15th, 2017 at 6:23 pm

    I know :( And it’s only getting worse with technology too… Does so much good and bad at the same time! I’m just waiting for the movement where people start detaching themselves from the online world, which probably won’t happen in our own lifetime, haha….

    Reply

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