Americans Experiencing More Financial Stress
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.
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