Many Americans live in serious financial distress
A recent report compiled by financial experts says that one in four or 30 million working American adults “are suffering serious financial distress.” The report took data from 11 major business-sponsored surveys and 10 academic research studies. The report indicates that those people are experiencing “overwhelming levels of financial distress.”
The study also indicates that many people who are experiencing financial distress are living paycheck to paycheck. These people are worried about their retirement and insecure about being able to manage their personal finances adequately. Many have given up hope that they will ever be able to catch up.
Forty percent to 50 percent of those who report they are financially distressed also say that their health is being impacted negatively by their worries. Financially distressed people say that they have trouble maintaining their relationships, that they lead socially limited lives and that their job productivity has fallen.
As a matter of fact, 80 percent of those workers who reported feeling seriously financially distressed said that they spend some part of their workday dealing with financial issues.
Financially distressed individuals are not limited to low-income individuals. Financial stress can also be attributed to amounts of consumer debt and lifestyle (also, known as living beyond your means).
Four recommendations for financially distressed people to follow:
- Spend less than you earn. This means that you need to live below your means, pay off debt and start saving.
- Get a plan. This means you need to plan ahead—and determine the difference between needs and wants. Be practical and realistic.
- Determine your best options for relieving your financial distress. For instance, ask yourself how you can cut back on expenses, increase your income, pay down debt, obtain reasonable loans to pay off high interest creditors, or seek professional help from credit managers or attorneys if necessary.
- Check with your workplace to see if financial education programs are offered. If they are, sign up.