Get Financially Healthy in 2023
Getting healthy is top of the list of New Year’s resolutions for many Americans. Losing weight or going to the gym after the holiday season is standard practice for many folks. After eating all that holiday indulgence, it is time to slim down and streamline your diet.
In the same way, the start of the New Year should be a time to reevaluate your finances. A recent study found that Americans would rather focus on finance than fitness with New Year Resolutions. The research found that 78 percent of Americans would rather lose debt than lose weight.
That is not surprising because 13 percent of all Americans expect to be in debt for the rest of their lives. “Unfortunately, debt is a common occurrence in America,” says Rafe Klein, Senior Vice President, Investments for David Lerner Associates. “If you have debt try to pay it off as fast as possible or reduce it as much as you can. You should not put yourself in debt, especially over a long period. You could save that money and invest it.”
Most of us have some consumer debt. (80 percent). Having debt can affect your life. The average consumer debt is $38,000 excluding mortgages. That is quite a burden, especially if you want to save money. When you have debt, you’re not only paying the amount that you borrowed but you’re also paying interest. Over time, this amount gets bigger. Paying down or paying off your debt is the best way to free up money so you can start saving.
Financial worry, and especially debt, can wreck your sleep patterns which raises your stress levels and eventually could lead to serious medical conditions. The average American household mortgage is $189,586. Worrying about your mortgage payments is not a healthy situation to be in. The stresses and strains of owing money to an individual or institution can have a knock-on effect on your health as well. People who feel overwhelmed by their debt have reported often anxiety and depression.
As we enter 2023, it is more important than ever to feel stable and have a healthy financial situation. Financial stress and worry are on the rise because of the high cost of living and inflation. Fifty-five percent of Americans said they had a choice they would rather hire an Investment Counsellor than a personal trainer if they cost the same amount per month. Americans would rather make sure that they are financially well before they concentrate on their physical health.
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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