Though he grew up in a frugal household with parents who stressed the importance of saving money, Mayowa Alaketu has always preferred to spend.
The 25-year-old’s philosophy toward money is simple: He makes sure his bills are paid and then gives himself the freedom to spend the rest of his money if he wants to. He doesn’t keep a budget, describing himself as “pretty relaxed” when it comes to setting limits.
“My brother is one of the most frugal people I know, but for some reason, I’ve always been that one black sheep when it comes to saving money,” he tells CNBC Make It. “A lot of my financial knowledge tends to be centered around making and generating income as opposed to properly managing the income that I have.”
Alaketu earns $85,000 a year working in multimedia production at a legal nonprofit, as well as an additional $17,000 mining Ethereum.
But Alaketu doesn’t let himself get carried away. He makes most of his purchases on debit cards instead of credit cards so that he never forgets to pay something off.
“I’m not the most on track with trying to build my credit,” he says. “I’m not that diligent, so I just avoid it altogether and use debit.”
Alaketu spent a week chronicling his spending for CNBC Make it in September 2021. He challenged himself to keep his weekly spending around $400, even though he usually spends around $1,200 per week. He ended up splurging on restaurants and going to the movies, spending $1,000, but was still pleased that the figure was below his average weekly spending.
His spending varied from day to day. One day, his $281 total included dining out and going to the movies. Another day, he spent a total of $65 and his biggest expense was buying snacks at 7-Eleven.
Alaketu says the experience of tracking his spending helped him realize that he was happier on days where he spent less and spent his time doing free activities like playing baseball in the park.
“I know it sounds terrible coming from me, but I realized that you don’t need to spend a lot to have a good time,” he says. “I want to make some changes and see if I can make my way down to my original [$400] goal.”
Watch his full spending breakdown for the week in the video above.
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For Final Budget Act, de Blasio Makes $4B in Red Ink Disappear — But Leaves Adams Billions of Worries
With the stock market headed for another big year and interest rates near zero, Mayor Bill de Blasio slashed the budget gaps he’s leaving his successor by a third in an updated fiscal outlook released Tuesday.
But Mayor-elect Eric Adams may not owe de Blasio much of a thank you.
The latest projection still shows gaps of almost $8 billion for Adams’ first term and provides no money to finance pay raises as contracts with municipal unions expire. It also leaves the next administration facing a “fiscal cliff” of almost $2 billion when federal funding runs out for many of the initiatives de Blasio has launched since the COVID pandemic shook the city.
“Although the budget gaps appear manageable, Eric Adams has some work cut out for him and he should start right away,” said Andrew Rein, president of the fiscal watchdog group the Citizens Budget Commission.
Mayor Bill de Blasio holds a press briefing from City Hall, Nov. 29, 2021.
Ed Reed/Mayoral Photography Office
De Blasio did not make much of a to-do about his final actions on the city budget, releasing the key documents Tuesday afternoon without a media briefing. In a statement, he insisted he had met the challenge the pandemic presented to the city’s fiscal health.
“As this administration comes to an end, we’ve substantially lowered budget gaps and increased reserves, leaving the next administration with a strong foundation to continue New York City’s recovery,” the statement read.
After a summer of stagnation, the city’s economic rebound had picked up momentum in October with the largest increase in jobs in months and international tourists trickling back to town.
No one knows if responses to the Omicron variant will change that economic trajectory, although because of weakness earlier this year the administration slashed its estimate for 2021 job gains by almost half, to 232,000 from an optimistic 445,000.
And the budget gaps were not reduced because of fiscally responsible actions by the city — but rather by national economic trends.
The city began the year with pension plans that were 78% funded, compared with the state plan, which has consistently averaged more than 90% of the funds needed to pay the benefits it is obligated to pay. By the end of June, soaring markets had pushed the city ratio to 98%.
Mayor-elect Eric Adams could have a rough economic road ahead.
Ben Fractenberg/THE CITY
As a result, the city projects it will be able to reduce its contributions to its pension funds by a total of $5 billion over Adam’s first three budgets.
Similarly, the decline in interest rates means the city’s debt service of principal and interest on its outstanding bonds is expected to fall by more than $1 billion over those years.
Fiscal experts tick off numerous problems facing the incoming mayor, who is required to propose his first budget within two weeks of taking office on Jan. 1. The two most important are labor contracts and ways to fund new programs currently being financed by federal COVID aid.
The city’s pact with its largest union, DC 37, expired earlier this year and others will follow in the coming year, including the United Federation of Teachers contract.
Even annual pay increases of only 2%, far less than the recent rate of inflation, would cost $2.2 billion a year for the fiscal year beginning July 1, 2024, according to the Citizens Budget Commission.
“This round of bargaining can be a budget buster or city saver if the pay increases are funded by efficiencies,” said Rein.
He added: “There is a lot of knowledge in the city from City Hall to the frontline workers on how we can make the city more efficient.”
By contrast, the de Blasio administration’s budget plan offers virtually no specifics on programs to save money.
The second major problem is that the city is using federal aid to fund very popular programs like 3K, expansion of mental health services and educational enhancements, as well as nonprofit administrative support. The city will have to come up with at least $1.3 billion toward the end of the first Adams administration to keep the programs running.
The city also has not budgeted the $400 million needed to keep in place prevailing wages of shelter security guards and an increase in the value of rental vouchers.
State Comptroller Thomas DiNapoli also called for an aggressive effort by Adams to implement changes to city operations to save money. He noted the failure of de Blasio to do so in the current budget, which also reduces a target for labor savings negotiations with the unions to $500 million from $1 billion annually.
State Comptroller Tom DiNapoli wants to see more belt-tightening in the city budget.
DiNapoli also suggested that less robust economic growth might lead to slower growth in tax revenue than currently expected.
“The next administration should make efforts in its preliminary budget next year to reasonably assess the effects of changes to the city’s revenue over the plan and make the hard decisions necessary to balance the budget for [the budget Adams will propose in January] and beyond,” he added.
Adams had no comment on the budget revisions from Ghana, where he is vacationing. But previously he has been sharply critical of de Blasio’s failure to institute aggressive efforts to cut costs by giving agencies a target for reducing spending known as “programs to eliminate the gap,” or PEGs. He has suggested he will impose PEGs on all agencies of 3% to 5%.
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NYPD: Teen Trio Sought for Antisemitic Harassment Incidents Targeting Kids
Police are looking for an apparent teenage trio they say is responsible for an antisemitic harassment pattern in Brooklyn in which the group has targeted children.
The New York City Police Department says that the first incident was reported to police on Friday at around 6 p.m. in the area of Skillman Street. It was there that allegedly the three unidentified individuals approached a 12- and a 3-year-old boy, who were walking home, and one of the females in the group apparently slapped the 3-year-old boy in the face before fleeing. Police say the 12-year-old boy was not hit in this incident.
Days later, according to police, on Sunday shortly after 5:30 p.m. on DeKalb Avenue, an 18-year-old woman and a 7-year-old girl were walking to a store when they were encountered by the three female individuals. The 18-year-old was allegedly approached from behind and grabbed by the jacket and pulled to the ground, before the individuals fled. The 7-year-old girl was not struck.
Subsequently, minutes later, at around 5:40 p.m. on Skillman Street, a 9-year-old boy was approached from behind as he was walking, and he was slapped on top of his head multiple times, according to the NYPD. The group fled on foot.
The victims were all wearing traditional Jewish attire when they were attacked and refused medical attention at the scene, according to police.
The NYPD’s Hate Cime Task Force is investigating the incidents.
The individuals are described as teenage girls, each wearing jeans and winter jackets at the time of the alleged attacks.
Anyone with information in regard to these incidents is asked to call the NYPD’s Crime Stoppers Hotline at 1-800-577-TIPS (8477) or for Spanish, 1-888-57-PISTA (74782).
Supervised Drug Injection Sites to Open in NYC in Hopes of Preventing Overdoses
Mayor Bill de Blasio announced that overdose prevention center (OPC) services, aimed at reducing overdose deaths — a public health issue that the country as a whole has been grappling with and seen a dramatic increase of during the pandemic — will open in New York City.
OPCs, also referred to as supervised injection or supervised drug consumption sites, are safe places where people who use drugs can receive clean needles, medical care and be connected to treatment for addiction and social services, according to the city. The OPCs will be an extension of existing services and will be co-located with previously established syringe service providers.
According to a NY Times report, New York City will authorize two supervised injection sites in Manhattan — in the neighborhoods of East Harlem and Washington Heights — to begin operating as soon as Tuesday.
“New York City has led the nation’s battle against COVID-19, and the fight to keep our community safe doesn’t stop there. After exhaustive study, we know the right path forward to protect the most vulnerable people in our city. And we will not hesitate to take it,” said Mayor Bill de Blasio. “Overdose Prevention Centers are a safe and effective way to address the opioid crisis. I’m proud to show cities in this country that after decades of failure, a smarter approach is possible.”
The announcement means that New York City will become the first city in the United States to open officially authorized injection sites. Other cities, including Philadelphia, have taken steps toward supervised injection but have yet to open sites amid public backlash from both residents and local lawmakers.
These services will be coming online at a critical time, according to the city, which reports that during 2020, over 2,000 individuals died of a drug overdose in New York City, the highest number since reporting began in 2000.
Data from the first quarter 2021 shows 596 deaths occurred in New York City between January and March of this year. This represents the greatest number of overdose deaths in a single quarter since reporting began in 2000.
“Overdose Prevention Centers can turn the tide in the fight against the opioid crisis, and New York City is ready to lead the way,” said Deputy Mayor for Health and Human Services Melanie Hartzog. “We have lost too much to rely on the same playbook. It’s time to take bold action to help our most vulnerable neighbors and the communities they call home.”
An increase in overdose deaths is a reality that New York City does not face alone. Data from the CDC’s National Center for Health Statistics show that there have been about 100,300 drug overdose deaths in the United States during 12-month period ending in April 2021. This marks an increase of 28.5% from the 78,056 deaths during the same period the year before.
OPC services are proven to prevent overdose deaths, and are in use around the world, according to the city, which adds that there has never been an overdose death in any of these types of facilities.
Saint Joseph’s University Medical Center in Patterson, New Jersey is taking a progressive approach to drug addiction. NBC New York’s Pat Battle reports.
“The national overdose epidemic is a five-alarm fire in public health, and we have to tackle this crisis concurrently with our COVID fight,” said Health Commissioner Dr. Dave A. Chokshi. “Giving people a safe, supportive space will save lives and bring people in from the streets, improving life for everyone involved. Overdose prevention centers are a key part of broader harm reduction.”
A Health Department feasibility study conducted by the city found that OPCs in New York City would save up to 130 lives a year. Aside from aiming to save lives, OPCs benefit surrounding communities, city officials said, pointing to a reduction in public drug use and syringe litter. Additionally, according to the city, other places with OPCs have not seen an increase in crime, even over many years, according to the city.
The locations of the OPCs will focus on communities based on health need and depth of program experience.
“As the opioid crisis continues to ravage New York and the death toll rises, I am relieved and grateful New York City has taken the necessary step to open two Overdose Prevention Centers,” State Senator Gustavo Rivera, Chair of the New York Senate Health Committee said in a statement. “These centers will be an effective tool in preventing overdose deaths, stopping the spread of disease, and providing a path to recovery. They will also help address the valid concerns that certain New Yorkers have regarding the increased presence of substance use on our streets and its impact on our communities. This is just a first step. I look forward to working with the Mayor to open overdose prevention centers in areas with the highest overdose deaths, including the Bronx, and with the Governor to authorize them throughout New York State.”