How do you do in this economy?

Hello everyone! Have you ever paid attention to the economy? Everything is very expensive, and it is very difficult to find a job. Life is tough for little guys and gals. However, the top 10% is thriving because of the “K-Shaped” economic recovery. By 2025, the top 10% drive half of all US consumer spending like there’s no tomorrow because the stock market and housing market are doing well. In contrast, low- and middle-class workers often pay wages to pay and hold debts. Today, let’s talk a little about the K-tuned economy and how the RB40 housing handles this uneven adjustment.

Usually, going up lifts all boats. When the economy heals, everyone is often to blame. However, this time it’s a little different. There are clear winners and losers.

The winners

• Investors. The stock market is doing better than ever. If you are an investor, you may be feeling richer than ever.
• Homeowners. Home prices are higher than ever, and this helps the home owner feel richer. US homeowners have the highest level of equity. They can get a home equity loan if they need it. Homeowners are also reluctant to move because many of them have low-interest loans.
• Senior Neighborhood Workers. Thousands of white collar workers recently. However, if you have experience in the right field, you make big bucks. AI scientists and researchers make $450,000 a year. That is rich.
• AI and related companies. 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 profitability in the long run if it works.
• Luxury goods and services companies. The top 10% feel rich, and their income increases. Luxury companies and service companies are doing very well.

Relief

• Low and middle income earners. Inflation is still high. Everything is more expensive every day. Low- and middle-class workers struggle to pay ever-increasing debts, and become overwhelmed by debt. Total household debt reached $18.388 trillion, as-time top.
• Small businesses. Many small businesses are struggling because of taxes, inflation, and rising costs. Low- and middle-income workers are tightening their belts. Businesses that depend on those consumers will struggle with it.
• Check-in staff. The US youth (ages 16 to 24) unemployment rate reached 10.8% in July 2025. That is much higher than the overall unemployment rate, which is about 4%. Big companies are trying to replace many entry-level positions with AI.
• Job seekers. Companies are not currently hiring. They are trying to cut costs with AI. The company’s typical job opening receives more than 250 applications. The economy is uncertain, and no one wants to rent in this situation.
• Government employees. The current administration continues to pressure federal employees and contractors. The federal government used to be a great place to work, but it’s a hostile workplace now. I don’t think they save any money. The government spends a ton of money taking over various cities. Flying Black Hawks around Portland costs $50,000 a day. It’s funny. There will be a ton of decisions over the next few years.

RB40 house

The RB40 family is doing well in this economy set up by the K. Wife Rb40 has retired, and our income is lower than ever. However, our net worth continues to grow every month. I feel richer than ever. We spend more money than ever because of inflation. Food, gas, utilities, taxes, classes, and our son’s outdoor activities are more expensive than ever.

Fortunately, I am very successful at keeping up with lifestyle inflation. We never spend any money on luxury goods or services. The only extra thing we spent on was a small item in the kitchen. However. Our old kitchen was from the early 80s. It had a formica countertop, a ceramic tile floor, and all the cabinet doors were flush. I still drive our old 2010 Mazda 5 and buy clothes from walmart. No one cares how I look anyway.

All of us, we are doing very well in this economy. Wife Rb40 retired earlier than expected, but we were prepared for the loss of income. As long as our net is worth surfing, I’m not too worried. I feel bad for young people and job seekers, though. Tough job market.

What about you? Are you doing well in this economy made by K?

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Joe started Retired at 40 In 2010 he figured out how to retire early. After 16 years of investing and saving, he achieved financial independence and retired at 38.

Joe praises the power of DIY investors. They have many useful tools to help you achieve financial independence.