Here's Your Fortune: BNPL Blues, AI's Silent Rise & Sweets to Success

Tomorrow’s Fortune

Welcome to the action-packed newsletter designed to help you navigate the world of business, investing, and technology. You owe it to yourself to stay informed! If you missed last week’s post, check it out here. 😎 

Cool Fact: Back in the 1950s, the first AI program, aptly named "Eliza," was developed to simulate conversation with a psychotherapist. People were so convinced by its responses that they would pour their hearts out to this digital confidante, unknowingly revealing the potential of AI to understand human emotions and interactions. It was like having a virtual therapist before virtual reality even existed! 🤖💬

Today’s Digest:

• Buy Now, Pay Later Blues! 💳 Watch out for hidden pitfalls lurking in the shadows! A recent study uncovers shocking costs behind the convenience of spreading out payments.

• AI’s Hush-Hush Revolution: AI's Quiet Takeover and the Sprint to Keep Pace 🤖 Are we falling behind in the race against artificial intelligence? Dive into the silent revolution shaking up our world.

• Sweets to Success: Unwrapping Your Ticket to Vending Machine Wealth 🍬 Turn snacks into stacks of cash with our bite-sized guide to vending machine riches! Get ready to fill your pockets and satisfy your cravings for success! 💰

TOP STORY

Hidden Dangers Lurk in Buy Now, Pay Later: Study Reveals Surprising Costs

Attention young shoppers and credit newbies! Your favorite "buy now, pay later" (BNPL) options might be hiding some nasty surprises. Researchers have discovered that these seemingly convenient payment plans can lead to financial pitfalls.

Here's the scoop:

• A recent study analyzed the financial data of millions of Americans and found that BNPL users were hit with extra charges, including:

  • Overdraft fees: Whoops! Spending more than you have in your account can lead to hefty penalties.

  • Credit card interest: Using BNPL doesn't magically shield you from interest charges on your linked card.

  • Increased fees: BNPL providers themselves might charge additional fees on top of everything else.

The numbers don't lie:

• The average BNPL user pays an extra $176 per year in fees.

• But for those struggling financially and unable to qualify for traditional credit, these fees can skyrocket to $252 per year – ouch!

The dark side of longer-term BNPL:

While "pay-in-four" options may seem appealing, the industry's booming growth has led to new products from companies like Affirm, Klarna, PayPal, and Sezzle. These offerings come with longer terms and potentially hefty costs:

• Interest rates as high as 36.99%: Compared to the average credit card APR, this can significantly increase your repayment burden.

• Late fees of $30 or more: Missing a single payment can leave a big dent in your wallet.

• A staggering example: A $2,500 loan with a longer-term BNPL and a 36.99% APR can result in $1,074 in interest charges alone over 24 months. In comparison, a credit card with a 24% APR would cost only $672 in interest for the same purchase.

Unregulated and unprotected:

Unlike credit cards, BNPL loans often lack basic consumer protections. This is because, despite their widespread use, they are largely unregulated. This means you may have fewer safeguards in case of issues with your BNPL provider.

The bottom line:

BNPL isn't going anywhere, but with informed awareness and responsible regulations, it can be a safer and more transparent financial tool for everyone. Remember, knowledge is power, so do your research and use BNPL wisely!

BITS OF GOLD

• Buckle up, it's a wild ride in the crypto world!

  Bitcoin just hit a record high of $69,374, and has done nothing but crush ceiling expectations! While we can expect some volatility in the crypto markets in the coming weeks, seems as if the Roaring 10s for Crypto is back in motion. Experts are staying optimistic though, thanks to big institutions like BlackRock diving in for the long haul with ETFs.

• Feels like 2021 for ETH?

  Forget the DeLorean, Ethereum just time-traveled back to its late 2021 price of $3,800!  But don't get too comfy, it dipped a little.  The good news? Staked Ethereum is booming, reaching over $116 billion!  This is all thanks to the upcoming Dencun upgrade, promising to slash fees and handle transactions like a champ.  Get ready for a smoother ride on the Ethereum highway! ️

• Overhyped or a Visual Masterpiece?

  "Dune 2" crushed the box office this weekend, raking in more money than most movies seen all year!  Turns out, giant sandworms and epic desert battles look WAY cooler on IMAX.  It was practically a three-hour fashion show for spacesuits, though... maybe next time bring a water bottle! 

• Talk about a win-win!

  Robinhood just launched a retirement plan specifically for gig-economy workers, because apparently, building sandcastles on the beach doesn't come with a 401(k).  Starting next week, Taskrabbit, Grubhub, and Gopuff workers can save for their golden years and maybe finally afford that fancy beach umbrella they deserve. Plus, they get a sweet bonus to kickstart their savings!

• Struggling to buy your first home?

  Don't fret, house hunters! A new study by Creditnews Research revealed the top spots for first-time buyers in 2024.  Pittsburgh takes the crown with affordable prices and room to negotiate.  Austin's chill vibes and job opportunities also make it a great choice.  But avoid California's pricey coastal cities like San Jose and San Diego unless you're a tech millionaire.  So grab your moving boxes and head to the city of your dreams (without breaking the bank)!

• Declined! 

  Getting approved for a loan these days feels like winning the lottery! A new survey says half of Americans have been REJECTED since the Fed started raising interest rates. Yikes! This means more expensive credit cards, higher borrowing costs, and Gen Z and millennials getting shut out the most. So, what's the takeaway? Be prepared, shop around, and maybe hold off on that impulse furniture purchase... your credit card might be maxed out already!

TASTE OF THE FUTURE WITH AI

The Silent Revolution: AI's Impact and the Race to Catch Up

Forget the Hollywood robots taking over the world. The real AI revolution is happening right now, quietly transforming everything from how you land your dream job to how doctors diagnose your illnesses. As this amazing tech becomes the invisible jetpack in our everyday lives, the future isn't just about avoiding bumps in the road, it's about soaring toward a world of incredible possibilities. So, hold on tight and get ready for the most exciting adventure ever!

AI's Invisible Hand:

• Job Hunt: Do you think your interview skills landed you the job? AI may have analyzed your video responses, raising concerns about hidden biases against certain groups. This isn't science fiction anymore – regulators are watching closely.

• School Daze: AI tutors are entering the classroom, promising personalized learning. But who decides how they're used? Local districts hold the cards, raising red flags about potential inequities and biases baked into the algorithms.

• Buying a Home: AI can be your real estate wingman, offering valuable insights. However, it can also make it harder to question crucial housing decisions. Remember the Facebook ad scandal? Algorithms can perpetuate discrimination, even violating fair housing laws.

Beyond the Headlines:

• Healthcare Crossroads: AI assists doctors in analyzing scans, deciphering notes, and even making diagnoses. This sounds promising, right? But what about transparency? Who decides how these algorithms are updated? The debate on data privacy and accountability is just beginning.

• Medical Billing Maze: AI could streamline the nightmare of medical bills, but worries linger about reduced transparency. Imagine battling an AI program over a denied claim – who would you even talk to?

The Tightrope Walk:

AI holds immense potential, but its ethical implications cannot be ignored. As we move forward, the challenge lies in navigating a tightrope – fostering innovation while ensuring these powerful tools are used fairly and responsibly. It's a balancing act that will define our future. Are we ready to take the reins and navigate this silent revolution, or will we get left behind?

Other Cool AI News!

• Musk vs Altman

  • AI drama alert! Elon Musk is suing OpenAI, the company he co-founded with Sam Altman, claiming they ditched their original goal of "AI for good" in favor of profits. This legal battle, along with an SEC investigation and a competitor backed by their partner Microsoft, throws a wrench in OpenAI's plans. Guess even robots and algorithms can't escape the drama!

• Finally! AI Travel Agents are Here!

  • Kayak's got your back (and your wallet)! Their new AI lets you snap a pic of any flight info and find a cheaper option. Feeling indecisive? Chat with their AI assistant "Ask Kayak" for travel tips and help planning your dream trip. Looks like robots are the new travel agents (minus the bad jokes)! ✈️

• Google Going for Gold

  • Move over, GPT-4! Anthropic's "Claude 3" is here, analyzing text, images, and even remembering your multi-step instructions (unlike your forgetful roommate). This AI whiz kid is still learning but promises to be your future email-answering, research-doing, maybe-even-novel-writing buddy. The future of AI is here, and it might just help you get stuff done!

WHAT ABOUT TODAY’S FORTUNE? SIDE HUSTLE OF THE WEEK 💸

From Candy to Cash: Your Bite-Sized Guide to Vending Machine Riches 🤑

Dreaming of earning extra cash without breaking a sweat? Look no further than the exciting world of vending machines! These little profit powerhouses offer a flexible, low-maintenance side hustle that can turn your spare time into sweet, sweet cash. So, ditch the alarm clock and say hello to vending machine freedom!

How to get started?

1. Overview of the Snack Business:

Ever dreamt of being your own boss but without the hassle of a storefront? Vending machines offer a pocket-sized business opportunity, letting you be your own vending machine king or queen! Stock them with tasty treats, refreshing drinks, or even quirky finds, and watch your mini-stores silently turn a profit. It's a business that fits your schedule, not the other way around, leaving you free to conquer the day (or hit the snooze button a few more times). So, ditch the 9-to-5 and say hello to vending machine freedom!

2. Average Startup Cost:

So, what's the investment? It's mainly the cost of machines and stocking them up. From budget-friendly bulk machines to high-tech wonders with touch screens and credit card readers, prices range from $50 to $3,000. Fancy features can attract more customers and up your profits. To help you out and give you an idea of starting costs, here are some prices of used vending machines for sale on eBay.

3. Capital Intensity:

Don't forget to factor in the sidekicks your machines will need! Besides the star of the show, expect to spend $100-$300 on things like installation, an initial stock of goodies, and eye-catching signage to lure in customers. Remember, happy machines mean happy profits! To keep them running smoothly, budget around $100 annually for repairs, potential transportation costs if you move them around, and $75-$150 per machine for yearly maintenance. With these sidekick costs in mind, you'll be well on your way to vending machine mastery!

4. Interesting Growth Opportunities:

Now for the fun part – growth opportunities! Customize your offerings to suit your location – healthy snacks for schools, hearty meals for offices, or travel essentials for airports. Forge relationships with wholesale suppliers for better deals and find high-traffic locations to maximize profits.

5. Impact of AI:

There's a buzz about AI changing the game. Imagine machines that remember your favorite candy bar or adjust prices based on the time of day (like those offices with discounted snacks!). Pretty futuristic, right? This technology could personalize the experience and boost profits, but it's still in its early stages.

6. Earning Potential:

Now, let's talk money. Marcus Gram, the founder and owner of Joyner Vending started with a $10,000 investment and reached $500,000 in annual sales within five years! Their best locations even pulled in thousands of dollars each month. But remember, this is just one story. Their success likely involved strategic choices, efficient operations, and a willingness to adapt. Your journey might look different.

The bottom line? Vending machines offer a potentially lucrative path, and AI might just be the next big thing in the snacking world. But remember, success often requires hard work and strategic planning, no matter how fancy your machines get!

TWEET OF THE WEEK

This newsletter is for informational purposes only and does not constitute investment advice. The content is based on publicly available information, and the author makes no representations about its accuracy or completeness. Readers should conduct their own research before making any investment decisions.