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Americans Experiencing More Financial Stress

Core Facts

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Monday, August 22, 2022

The results of a national poll on consumer confidence showed a one percent increase in July. Consumer confidence has been down for the last 11 consecutive months so that one percent increase should be an indicator that consumer confidence is improving.

However, more than half of Americans (58 percent) believe we are already in a recession and financial stress is still in negative territory. The Consumer Price Index fell down to an inflation rate of 8.5 in July 2022 from 9.1 in June 2022. This decrease was by driven gas, housing, and food costs.

"It's not surprising to hear that many Americans feel more financial stress right now," said Martin Walcoe, President and CEO of David Lerner Associates, "For the first time in two years, Americans were looking forward to getting out and about this summer. That has been dampened by these rising costs."

The Lending Club/PYMNTS survey shows that even some high earners have been affected by increased financial stress. While lower-income households are stressed by the rising costs of living, leaving them with no funds by the end of the month, higher-income groups are also feeling the pinch of assisting a family member financially.

Financial Stress Strategies

Create a budget

If you don't already use one, try a budgeting app. A good budgeting app should be able to show you how to cut back on your expenses, allowing you to redistribute your income so you can cover your bills, put money into your savings, and still manage to have a little left over for the fun things that make it worthwhile.

Increase your income

There are many ways to earn extra money. And now is the perfect time to start a side hustle. Enterprising youngsters have started a lawn mowing business that's paying good money. If you're good at making things, Etsy is a great place to sell your goods. Some people buy items at thrift stores and resell them online. All it takes is ingenuity and hard work. One young mother who has always been interested in antiques has started buying flea markets and yard sales items, cleaning them up, and selling them at antique markets. Affiliate marketing is another way to earn more. All it takes is the willingness to do more work and find a vehicle that you find interesting.

Pay off debts

As soon as you have any extra income, pay off any debts or credit cards. The interest rate on credit cards can be crippling. Getting free of debt will give you more money to put in savings. That creates a buffer for the future and relieves financial stress.


IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

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