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Yo!
A couple of weeks ago, I answered questions for an article about buying a home. The crux of the piece was this question: was purchasing a home worth it? In other words, can homebuyers today expect the value of their home to appreciate— making the cost of maintenance, insurance, and taxes worth it over time.
Of course, I don’t know exactly how the future will play out, so it's impossible to give a definite answer. But thinking about this question made me stop and think about the underlying economic forces at play. The relationship between the demand for homes and their supply is what dramatically determines price and value.
And so, those who aspire to purchase a home with hopes that it will appreciate considerably (generating a much greater return than inflation) ultimately hope that the supply of houses will never keep up with the demand. We’re seeing the result playing out — folks crowded out of the market, and homelessness perpetually rising seems to be a feature of this system, not a bug.
When we illuminate the underlying fundamentals of how our modern economy works, it's easy to see that so much of our system's foundation relies on scarcity. What traditional economics teaches us seems rational: buy low and sell high. It's not until we dig a little deeper to see how buying low and selling high is possible that it starts to appear a lot less rational.
Your finance friend,
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1. 🤓 My Partner Has A Secret “Get Out” Fund. How Am I Supposed To Feel? (Paco for Refinery29) How to deal with a partner keeping a financial secret from you 🤓
2.👩🏾🎓 How to Get Ready to Start Paying Your Student Loans Again (Ellevest)
3. 🙌🏽 Is anything cool anymore? (Vox) What is consumer identity in the time of cheap manufacturing and constant availability?
4. 🧶 In The Era Of The Side Hustle, Is The Hobby Dead? (The Werk) “Why we should resist the pressure to constantly optimize for profit.”5. 📚 The Spine Collector (Vulture) For years, a mysterious figure has been stealing books before their release. Is it espionage? Revenge? Or a complete waste of time?4. 🤓 A Bookkeeping Thing: What is Cash Flow Forecasting, Why It Matters and How to Do It (HYG Original by Paco) It estimates how money flows in and out of your business. While cash flow forecasting has long been a business tool, it’s also something you can do in your personal finances (the more you know). 🤓7. 🧘🏽♀️ She’s the Investor Guru for Online Creators (New York Times) “If there is such a thing as an It Girl in venture capital these days, Ms. Jin, 31, would fill the bill. She sits at the intersection of start-up investing and the fast-growing ecosystem of online creators, both of which are red hot. And while she formed her own venture firm, Atelier Ventures, just last year and has raised a relatively small $13 million for a fund, Ms. Jin was among the first investors in Silicon Valley to take influencers seriously and has written about and backed creators for years.”8. 🪴 Pro-Growth Isn't Anti-Environment (The Overshoot) “Now, I happen to think that giving people more money to buy more stuff would be a good thing. I also think it can be done in a way that doesn’t involve endangering the environment. We might need to change how we make things and maybe even change some of what we buy, but both the total population and the average person’s living standards should still rise as long as human ingenuity does what it’s done for the past couple of centuries: radically reduce our need for material inputs.”
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