More and more people in America are struggling financially. Credit card debt continues to increase, housing prices are out of control, and interest rates are making things uncomfortable for many. Living on a budget is a fantastic way to get on track, but for those facing challenges on multiple fronts, it’s more difficult to do. These are 11 reasons why it’s so challenging for people living on the edge financially.
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Cost of Living Continues to Increase
Unless you’re living under a rock, you know how much inflation has taken a toll on American families over the past several years.
Moody’s Analytics reports the average family is spending $700 more a month on the same goods and services than they were in 2021. That’s painful.
Housing Costs Are Getting Out of Control
Owning a home is a significant part of the American dream. Sadly, it’s growing more out of reach for more families.
Prices continue to increase. Worse yet, rising interest rates make borrowing more expensive.
Second Jobs Are Becoming More of a Necessity
Side hustles are preached by many in the personal finance space. However, a growing number of people simply need one to get by financially.
Reports show nearly nine million workers have two jobs. That number continues to grow and puts more stress on families.
Minimum Wage Isn’t a Living Wage
The last time the federal minimum wage was increased was in July 2009. That was 14 years ago. It wasn’t a livable wage then and certainly isn’t now.
Yes, some states have increased theirs, but it isn’t guaranteed in all states.
Health Care Costs Continue to Skyrocket
In the absence of true national health care, expenditures continue to spike for families. Spending tripled to over $4 annually as of 2021.
If you don’t have insurance, it’s a painful experience.
The Government Doesn’t Work For Us
The government is meant to work for us. Sadly, and not surprisingly, it doesn’t. Partisan divides continue to become more entrenched.
This leaves politicians left to their often corrupt devices and working only for themselves.
Few People Have a Support System
Going things on your own is fine for some people. Unfortunately, that is not the case when you’re struggling financially.
This is especially true of individuals who live in single-adult homes or non-white people. Sadly, this often just continues the cycle for generations.
Everyone Has Their Hands Out
Rising prices hit everyone. From Netflix increasing their prices to gas becoming more expensive, it’s difficult to keep pace.
This is especially so if your wages don’t keep pace with costs. Debt then becomes more of a reality, only furthering the problem.
Food Costs Haven’t Come Down
Anyone who has visited a grocery store over the past two or three years knows how painful it is. Prices increased dramatically, but we’ve seen minimal reduction.
Reports indicate that ingredient prices have gone down this year. However, other costs like labor and transportation remain high for producers. As a result, we’ve seen little relief on the food front.
People Lack Financial Literacy
Financial literacy isn’t prized in our country, and it shows. Less than 30 percent of adults in America claim to be financially literate.
You don’t need to have an MBA to master your finances. You just need to know the basic steps to begin with to reach your goals. Those basics can impart a lot of power and confidence.
Peer pressure is more present in spending decisions the younger you are. However, it’s still there. This pressure leads us to spend, even when we don’t have the necessary resources.
When done wisely, it’s okay, but if not, it can be problematic.
Ways That Joe Biden is Hurting Your Wallet
President Biden claims that Bidenomics is great for your financial well-being. That may not necessarily be the case. Here are 11 ways President Biden may be harming you financially.
How to Save Money on a Tight Budget
Saving money feels impossible when you’re struggling to make ends meet, but you can do it. Use these tips to save money each month, even on a tight budget.
I Need Money Now!
Are you in a cash rut and need money quickly? Don’t take out a loan. Here are 19 ways you can get cash today to make ends meet.
7 Steps to Break the Paycheck-to-Paycheck Cycle
Making ends meet is hard on a limited income. However, it is possible to break the cycle and find financial stability. You just need to know where to start.
Cut Your Grocery Bill in Half
Going to grocery store is an increasingly painful experience, but there are ways to save. Here are 12 proven ways to slash your grocery bill with minimal sacrifice.
I’m John Schmoll, a former stockbroker, MBA-grad, published finance writer, and founder of Frugal Rules.
As a veteran of the financial services industry, I’ve worked as a mutual fund administrator, banker, and stockbroker and was Series 7 and 63-licensed, but I left all that behind in 2012 to help people learn how to manage their money.
My goal is to help you gain the knowledge you need to become financially independent with personally-tested financial tools and money-saving solutions.