Many professionals say that a lot of Americans are losing sleep daily due to their financial concerns.
If this sounds all too familiar, you are not alone. There is a relationship between financial stress and work performance as well. Money is not something to take lightly since we do need it to survive. I have a short poll at the bottom of this post to get some insight on what some of your biggest concerns are, but for now let’s dig in to money a little bit.
Living paycheck to paycheck. According to a 2019 Forbes survey, roughly 78% of workers live paycheck to paycheck. I have been through it myself, and to be honest it can be a vicious and draining cycle. If you find yourself living paycheck to paycheck you are definitely not alone. Many of us do not realize that making some minor changes to our mindset and spending habits can really make a difference. No matter how much income you bring in, there is a budget out there that can work for you, and I am here to help.
Make sure you are prioritizing your wants and needs. That is the biggest step to get your finances in order. What are needs? Needs are things you absolutely cannot live without. Now I know many of us like having the newest gadgets and cars, but when I say needs, I am talking about food, water, shelter, etc. When it comes to wants, it’s totally okay to like something and want to purchase it. But, when discussing wants vs needs, we want to make sure we pay for our needs first, then delegate excess money to wants later.
Debt. Debt is such a short word, yet carries so much weight on our shoulders. According to a study done by Lexington Law, consumer debt rose to $4 trillion in 2018. Now, I can’t even fathom what $4 trillion dollars even looks like, but I know that number is very high. Anyone who has any type of credit card or loan fits into this number. While debt can actually have its benefits, it also has its downfalls. If you are finding yourself in a lot of stress over debt, we can help you come up with a plan.
Are your payments too high? Or maybe you are only able to afford the minimum payment each month and interest is basically all you are paying? Once you create a budget to decipher your wants and needs, include your debts as a priority you want to payoff. If you are expecting a bonus, for example, maybe allot 25% of it to go towards paying off your smallest loan. There is always a solution to get you into a better situation, but it will take patience and commitment.
Not saving enough. How many of you have been pushing back the idea of saving for your next trip, or even saving just to have some emergency funds? Same! I have been there too. In a recent Federal Reserve survey, 4 in 10 adults do not have enough savings to cover a $400 unexpected expense. Just a few years ago, I wouldn’t have been able to imagine even accumulating $400 period… but it can happen!
Make a plan to save a portion of your net income (take home pay) and get it transferred to your savings account. Most banks and credit unions will offer auto-transfer options so once your direct deposit hits, it can transfer a portion right to your savings. Out of sight and out of mind, right? Best way to do it is auto-transfer so you can’t even be tempted to spend it.
Like I mentioned earlier, please take 30 seconds to complete my one question poll below. This is also a survey that can help me help others by writing about what’s most important to my readers. Thanks for reading and stay tuned for more! Follow me on Twitter and Facebook for more posts!