Although the headlines show us that the economy is steadily improving, many Americans are still facing challenging economic headwinds. Interest rates have made purchasing a house even more difficult, consumer debt continues to increase, and many struggle to even make ends meet. Budgeting is often given as a solution, and it is a terrific way to manage finances, but it’s also challenging to do when you’re stretched too thin. Here are 11 reasons why Americans continue to live on the financial edge.
Table of Contents
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.
Layoffs Seem to Be Increasing
Photo Credit: ShutterstockLayoffs are rarely a good thing, especially when you’re struggling with money. Unfortunately, layoffs seem to be increasing in recent months. Fox Business reports that firms are focusing on cost-cutting efforts, largely in the form of layoffs.
Recent weeks have not been pretty for some in the workforce, especially for those working in the tech sector. Tens of thousands of jobs have been cut, leaving many in bad shape. Pair that with the fear over how AI may impact jobs, and it’s easy to understand apprehension. If that’s you, and you don’t have enough savings, living on the edge will likely only continue.
35 Proven Ways to Save Money Every Month
Many people believe it’s impossible to save money. Or, they think saving $20 or $50 a month won’t amount to much. Both are incorrect. There are many simple money-saving tips that can add up to big savings. You just have to start one, then another, to increase your savings.
Ways to Save Money Every Month
How to Save Money on Groceries
It can be a challenge to keep grocery costs under control. With a little planning you can cut costs and not sacrifice what you want.
How to Save Money on Groceries
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.
How to Save Money on a Tight Budget
How to Make Money Without a Job
In between jobs and need a way to supplement your income? There are plenty of ways to earn cash to tie you over.
Ways to Make Money Without a Job
23 Side Hustle Apps to Make Extra Money
Earning cash on the side is a fantastic way to make ends meet. But, which opportunities will help you the most? Side hustle apps connect you with good-paying gigs in your area so you can earn money in your spare time.
Best Side Job Apps to Make Extra Money
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.
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