Sometimes we don’t know why we do something or can’t seem to break a habit. This week dig deep and figure out why you often overspend or buy items that you really don’t need or want? Continue Reading The post Monday Money Tip-Why Do You Overspend? appeared first on My Worthy Penny.

Hey everyone! Have you been paying attention to the economy? Everything is getting more expensive, and it is very difficult to find a job. Life is tough for little guys and gals. However, the top 10% are thriving due to the “K-shaped” economic recovery. In 2025, the top 10% are driving half of all consumer spending in the U.S. They are spending like there’s no tomorrow because the stock market and housing market are doing so well. In contrast, the lower and middle-class workers are living paycheck to paycheck and racking up debts. Today, let’s talk a bit about the K-shaped economy and how the RB40 household is handling this unequal recovery. Normally, a rising tide lifts all boats. When the economy recovers, everyone usually prospers. However, this time is a bit different. There are clear winners and losers. Winners Investors. The stock market is doing better than ever. If you’re an investor, you’re probably feeling wealthier than ever.   Homeowners. Home prices are higher than ever, and this helps homeowner feels rich. U.S. homeowners are sitting on historically high amounts of equity. They can get a home equity loan if they need to. Homeowners are also reluctant to move because many of them have low-interest mortgages. High-earning knowledge workers. Thousands of white collar workers have been laid off recently. However, if you have experience in the right sector, you’re making big bucks. AI scientists and researchers are making upward of $450,000 per year. That’s pretty rich.   AI companies and related. Tech and AI-related companies are doing very well. Companies are trying to cut costs by replacing human workers with AI. This will increase productivity and profits in the long term if it works out.   Luxury goods and services companies. The top 10% feel rich, and they are ramping up their spending. Luxury goods and services companies are doing very well. Losers Lower and middle-income earners. Inflation is still high. Everything is getting more expensive every day. Lower and middle-income workers are struggling to pay the ever-increasing bills, and they are racking up debt. The total household debt reached $18.388 trillion, an all-time high. Small businesses. Many small businesses are struggling due to the tariffs, inflation, and rising costs. Lower and middle-income workers are tightening their belts. Businesses that depend on those consumers will struggle too.     Entry-level workers. U.S. youth (ages 16 to 24) unemployment rate reached 10.8% in July 2025. That’s way higher than the overall unemployment rate, around 4%. Large companies are trying to replace many entry-level positions with AI. Job seekers. Companies are not hiring right now. They are trying to cut costs with AI. The average corporate job opening receives over 250 applications. The economy is uncertain, and nobody wants to hire in this condition. Government workers. The current administration continues to push out federal employees and contractors. The federal government used to be a good place to work, but it’s a hostile work environment now. I