Are you falling behind on payments? You’re not the only one. A recent report from TransUnion revealed that the COVID-19 pandemic has financially affected 52 percent of people in the United States. The stock market is dropping, businesses are failing, unemployment rates are rising, and families are struggling to make ends meet. However, even before the pandemic, a whopping 85 percent of Americans admitted to feeling stressed about money.
Financial issues can plague anyone, regardless of the state of the world. Here are five of the most common financial stressors and how you can overcome them.
Drowning in credit card debt
It’s perfectly fine to dip your toes in the water or swim in it. But whatever you do, stop yourself from drowning in debt. Owing a large sum of money is one of the main hindrances to achieving financial freedom or security. If you lack discipline and self-control, you could be neck-deep in debt, swiping one credit card after another until the cashier utters every shopaholic’s worst nightmare: “your credit card was declined.” Don’t wait for this to happen to you. Get in touch with your credit card company to discuss more favorable payment options, which include waiving penalty charges or annual fees, reducing your credit limit (although this may impact your credit score), and limiting the number of credit cards you own if necessary.
The inevitable bills, bills, and more bills
Even though we’re aware of when our bills are due, we’re all guilty of letting monthly bills pile up until the final notice arrives. As a result, on top of unpaid bills, penalties and reconnection fees contribute to more money being lost.
Paying bills on time is a good practice that can protect you from unwanted penalty charges. Try enrolling your credit card, phone, subscription services, cable, and insurance accounts with your bank’s auto-debit options. Doing so ensures that you don’t miss any payment due dates.
In addition, you could download a calendar app that can alert you whenever you have a payment schedule coming up.
If paying your bills on time would leave you with little cash to spend until your next payday, you can always bring your valuables here at Biltmore Loan and Jewelry, where you have the option to pawn or sell luxury items in Phoenix, AZ. Although we buy or loan on most anything you own, these seven items usually command the highest prices.
Having no money during an emergency
61 percent of Americans can’t cover a $1,000 emergency. It’s best to have some money stashed away in case of medical problems, job loss, and any other emergency. Safeguard your money in a dedicated bank account or an improvised safe deposit box, helping ensure you have sufficient funds should the unfortunate take place.
Now, we know what you’re thinking: having an emergency fund is easier said than done. Though you have a reasonable point, it’s not impossible to achieve your financial goals and save money while simultaneously paying for bills, credit card debt, or student loans. It only requires carefully executed planning and a bit of sacrifice, such as opting for homemade meals than food delivery services on most days a week. Read 7 Money Moves for Better Finances in 2021 for more tips on how to grow your savings.
The best time to begin saving for your emergency fund is right now. If you have nothing on you, you can start by setting aside a dollar a day. If you can, boost your savings to $5 a day and you’ll have a fund of $1,825 after a year.
Being a perpetual tenant
Renting a posh apartment near your office may seem counterproductive to having your dream home someday. However, although renting may help you save time and money that you would otherwise spend commuting to and from your office, wouldn’t it be better to invest your savings in something that will be yours down the road? By “something,” we mean a place you can call home, a home that is 100 percent yours.
Further adding to the already-expensive costs of renting a condo is the temptation of splurging on gourmet food delivered to your doorstep, bringing home the latest flatscreen TV, or falling for exclusive privileges courtesy of the gym located on the premises of your building.
Setting your sights on a house or apartment for sale and picturing your family in it might be the push you need to break free from being a high-maintenance tenant and become a high-value property owner.
Worrying about retirement
Data from Northwestern Mutual’s 2019 Planning & Progress Study revealed that Americans are not saving enough for retirement. In fact, around 15 percent of people in the United States have no retirement savings at all.
If you’re young and perhaps fresh out of university, starting your career, saving now, and saving regularly will make a significant difference in your present and future. Take full advantage of the power of compounding interest. Even the smallest amount set aside early on and contributed to on a regular basis could provide you with a decent retirement fund. Most financial advisors may recommend saving between 10 to 15 percent of your income in a retirement account.
Younger Millennials and older Gen Zs are in the best position to recover if they’ve fallen behind since they have more time to use compound interest to their benefit. For men and women aged 40 and over, however, the picture might be more bleak. Anyone nearing retirement age will need to have a significant source of income, otherwise, they have to catch up with a more aggressive savings plan. The latter may mean saving four to five times as much as younger people.
Sell Luxury Items to Solve Your Money Problems
Here at Biltmore Loan and Jewelry, we buy high-value assets at competitive prices. If you need money fast to solve a financial concern or to grow your savings, bring your luxury pieces to our office in Scottsdale or Chandler, AZ to receive a direct quote and immediate cash.