A lot of individuals nowadays are concerned about their money, and for good reason. Not only is inflation ravaging customers’ purchasing power, but there are numerous warnings of an oncoming recession.
You’re in excellent company if you’re worried about your money. According to Northwestern Mutual’s 2022 Planning & Progress Study, a decent 54% of Americans feel the same way. Taking the following actions to enhance your financial position is instead of wasting time worrying about money issues.
1. Boost your emergency savings
Are you concerned that your next unexpected expense, whether it’s a house repair or an automobile problem, will lead to debt? If this is the case, increasing your emergency fund is a smart idea. Start cutting back on your spending and put additional money into your savings account in order to have at least enough cash to cover three months of living expenses.
This is an important step to take if you’re concerned about losing your job as a result of the economy. Even a lengthy spell of unemployment might be manageable with a good emergency fund.
2. Pay off high-interest debt
Even if you’re managing to pay your bills on time, having debt may be stressful. And, if you are concerned about getting laid off from your job during a recession, it’s critical to take action now to get out from under bad debt. After all, the last thing you would want is a monthly credit card minimum payment when you lose your job.
Take a look at your various bills and try to pay off those with high interest rates, such as your credit cards. Don’t be concerned about reducing mortgage debt; it’s a good thing to have. The interest rate you are paying on your home loan is most likely far lower than the credit card interest rates you’re currently paying.
3. Delay large purchases
If you are in the market for a home or want to upgrade your clunker of a car, this is an excellent time to do it. However, if financial worries — especially one related to an oncoming recession – cause you stress, then purchasing new items may be undesirable. The last thing you need is to incur further costs while already concerned about money. Instead, concentrate on increasing your savings before adding to your bills and debt load.
4. Boost your income with a second job
Given the high cost of living and worries about inflation, it’s easy to see how you might believe your present salary isn’t enough. If this has been a worry for you, consider taking on a second job to boost your income and make it easier to do things like save money and pay off debt. While economists are concerned about an oncoming recession, the labor market is robust right now, with positions available. So take advantage of these circumstances by obtaining a side job.
Money anxieties might have an impact on your mental health and result in sleeplessness. And you deserve better. Consider the causes of your financial anxiety and try to address them. Add $1,000 to your savings account or shave $500 off your credit card balance and it may help you feel better about life.
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