What to Expect From Becoming Financially Confident Before It Launches Today

Quick Take

• Becoming Financially Confident launches Monday, August 31 at 11:30 AM Eastern, live every weekday

• July inflation hit 3.4% headline, but groceries, gas, and insurance moved in very different directions

• The federal flood insurance program's authority runs out at the end of September, and new policies carry a 30-day wait

• Four listener questions cover tip and overtime taxes, medical debt on credit reports, credit repair scams, and side hustle income

• This week's homework: freeze your credit at Equifax, Experian, and TransUnion before next Friday

Why does the 3.4% inflation number not match my grocery bill?

It's an average across categories moving in opposite directions. A $200 grocery run last year runs $205.40 now, electricity is up 4.2%, and car insurance actually dropped 4.5% for the first time in years, even though the cost to repair cars rose 6.6%. Core inflation, the number the Fed studies, sits closer to 2.5%. Headline inflation is 3.4%.

Why is gas up so much this year?

Regular gas is running $4.085 a gallon, up from $3.147 a year ago. On a 15-gallon tank, that's roughly $61 to fill up now versus $47 last year, a 29.8% jump year over year. Ralph's tip: fuel rewards cards can knock 10 to 30 cents off a gallon, and it's worth checking GasBuddy before you fill up.

What is the flood insurance deadline everyone is talking about?

The federal flood insurance program's authority runs out at the end of September. Every new policy has a 30-day waiting period, so waiting until the deadline could mean you're not covered in time. If your flood insurance is tied to a mortgage, there's no wait. The average flood claim runs $68,000, and a standard homeowner's policy doesn't cover flood damage, not even a burst washing machine line.

What does the Fed's interest rate vote mean for my credit card?

The Fed held rates steady, but the vote was 9 to 3, with three members pushing for higher rates. Ralph doesn't think rates are heading down anytime soon. On a $6,000 credit card balance at the average 22.15% rate, that's $111 a month in interest, or $3.64 a day, before a dollar goes toward the principal.

Does "no tax on tips and no tax on overtime" change my paycheck right now?

No. It shows up when you file your return, not on your regular paycheck. Tips are still subject to Social Security and Medicare tax, and the deduction is capped at $25,000 for tips and $12,500 for overtime ($25,000 if filing jointly), with phase-outs starting at $150,000 for single filers and $300,000 for joint filers. The rule runs through tax years 2025 to 2028.

Can medical bills still show up on my credit report?

Yes, for now. An executive order tried to remove medical collections from credit reports, but a federal court in the Eastern District of Texas ruled it unconstitutional on July 11, 2025. Credit bureaus currently don't report medical collections under $500 on their own, but that's bureau policy, not federal law. If you get a medical bill, request an itemized version, confirm your insurance is current with the provider, and ask about financial hardship plans before it goes to collections.

Should I pay a credit repair company to fix my credit report?

Ralph's answer is a hard no. There were 6.6 million complaints against credit repair companies in 2025, and 88% were about credit reporting issues. No third party can remove accurate negative information, only you can dispute it, and it's free. Negative items fall off after seven years, bankruptcies after ten. Pull your free reports at annualcreditreport.com and dispute anything that's wrong yourself.

I drive for an app on the side. How much should I set aside for taxes?

Set aside 25 to 30% of what you earn to cover federal, state, and the extra 15.3% self-employment tax. If you expect to owe more than $1,000 for the year, you need to make quarterly estimated payments. Keep an actual mileage log, not a guess. The IRS mileage rate is 76 cents a mile right now, up from 72.5 cents through June.

Closing

This episode is a preview. The real thing starts later today, Monday, August 31, live every weekday at 11:30 AM Eastern at becomingfinanciallyconfident.com/live, with the podcast version dropping around 5 PM Eastern. Subscribe now so you catch day one.