Losing sleep over money

Are You Losing Sleep Over Money?

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Many Americans are losing sleep over money, according to a January 2019 survey by Bankrate. The media may report a ‘strong U.S. economy,’ but many people experience stress outside of what’s happening in the broader economy. The survey indicates that a large number of Americans live paycheck to paycheck and continue to struggle financially year after year. The top five money stresses keeping survey respondents awake:

  • 32% reported stress paying everyday expenses
  • 24% indicated stress about not having enough
    saved for retirement savings
  • 22% were concerned about being able to pay for
    health insurance and healthcare.
  • 18% stress about settling credit card debt and
    making mortgage or rent payments (18%).

So why are more people feeling financial stress despite the strong economy we’ve experienced since the recession? Usually, wages increase during an economic expansion, but the rising cost of living is eating up more of each paycheck, leaving little leftover for non-discretionary spending. Working Americans make only about 10% more than they did in 1973, when adjusted for inflation, according to a 2017 Brookings Institute Report. If we aren’t making more money, what can we do to sleep better at night?

  • Create a Spending Budget- if it isn’t in the
    budget, don’t make a purchase. Part of the budget process should be assessing
    what you can eliminate. Maybe it’s a satellite TV package that’s bundled with
    home phone and internet.
  • Automate retirement savings directly from your
    payroll deductions and automate savings contribution increases.
  • Seek employment at companies that provide health
    insurance and also have an HSA (Health Savings Account) as part of their
    benefits package. An HSA is yours to keep and can be rolled into another HSA if
    you transfer jobs to help you pay for unexpected medical expenses. Another
    benefit of an HSA is it can be used for long-term care after you retire.
  • Create a plan to pay off credit card debt and
    “cut the card,” or so to speak. Discontinue using credit for purchases and stop
    using ‘rewards’ to justify credit spending. If you use credit cards to pay for
    emergency spending, work to create an emergency fund for unplanned financial
    emergencies.
  • If you have a significant mortgage or rent
    payment, consider moving to a more affordable residence or geographic area
    within your budget. 

Evaluating your spending and debt can reap greater rewards later, even on a stagnant wage if you don’t foresee making more money soon. Financial planning includes accessing your current situation and developing a plan so that you can save more and be financially secure.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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