New look, same newsletter

01. Shiny newsletter

From Nate Hoskin, Founder & Lead Advisor

As more people read the Zenith Newsletter, we want to grow with you. That’s why we took the time to completely renovate your reading experience!

From here on out you’ll be getting videos, articles, tutorials, flowcharts, and more delivered straight to your inbox. We’re busy cooking up premium content to help you be as financially literate as possible.

Oh, and you can now view all of our previous newsletters by visiting our dedicated website.

As we grow, we get to give back! If you refer 5 people to this newsletter, we’ll write an article on a topic of your choice. Whether you want to know more about investing, the economy, budgeting, taxes, or literally anything else, we’ll make it happen.

For you true advocates out there, referring 25 people will earn you a Hoskin Capital mug!

Now on to the real topics, because Jon and Bennett have the latest and you don’t want to miss out.

02. Luxury Overload

From Jon Scott, Lead Author

Last week I explained how the Federal Reserve and the one percent were partially responsible for why we as a country do not feel richer than ever, despite that being the case. However, our appointed monetary leaders and the richest among us are not totally to blame. We instead have to look inward as well.

We as a country expect more luxury, and we need to realize what we see as normal standards of living are much different than in the past. First, let’s take the size of homes. In the 1960s the median square footage of a single-family home was 1,500 square feet. However, by 2009 that number increased to 2,200 square feet. That’s a 68 percent increase.

Okay so homes have gotten bigger, so what? Well let’s give another example. A 2000 Chevrolet Tahoe Z71 (the top of line model) came with 16 inch steel wheels, a 5.7 liter V8 engine making 255 horsepower, AM/FM radio with cassette, cruise control, front and rear air conditioning, interior lights, remote keyless entry, heated driver and front passenger seats, and dual heated outside rearview mirrors to name some of it’s most advanced features.

Today’s Z71 Tahoe comes with a 6.2 Liter V8 engine making 420 horsepower, 20 inch aluminum wheels, HD surround vision (cameras around the car), keyless entry, remote start, 9 speaker Bose audio system, touch screen infotainment system with Google and Apple CarPlay, Wi-Fi data capability, bluetooth audio, heated first and second row seats, memory settings for the driver’s seat, heated steering wheel, outside power mirrors, lane change assist, blind zone monitoring, magnetic ride control, air ride adaptive suspension (for increased comfort while driving), a trailer monitor, trailer brake controller, sunroof, sunshade, rear pedestrian alert package, and power outlets. I could mention a lot more bells and whistles for the 2023 model, but I’ll spare you the details. And the Z71 isn’t even today’s top of the line Tahoe.

My point here is although everything seems out of reach financially, part of the reason is that we as consumers are asking for more and more. Though technology advances and becomes cheaper over time, the iPhonication of everything (the idea that we want the newest and best features in everything even remotely technological) comes at a steep cost.

However, we as consumers have the ability to impact vehicle features with our behavior. The wait for a new Ford Maverick is stretching into 2024, largely due to the fact that the small truck is simple and most importantly affordable, with a starting price around $22,000—with even the top models remaining under $30,000 (the 2023 Tahoe Z71 was $76,000). Meanwhile, Ford continues to cut the price on it’s more luxurious, all-electric Ford Mustang E due to poor sales.

The bottom line

First, we as consumers need to realize that more luxury isn’t the most important thing. We can accept a smaller home, a car without all the latest technology, or home appliances manufactured with older technology (but perhaps with an updated external appearance to match the current times). Second, we need to communicate our preferences to companies. We can do this by buying lower price items or asking for simpler, more affordable products in consumer feedback surveys. It sounds simple and boring but this can make a huge difference.

There is a myriad of factors beyond our control that make life seemingly unaffordable for the vast majority of us, however we do hold power. As a group, we can influence some factors that can make life at least a little more affordable.