The Financial Roadblocks We Still Face

While public opinion on the economy is often strictly divided along political lines, opinions of personal household finances tend to be more accurate. So while a majority of Americans feel that the economy has improved in the past two years, many aren’t feeling that impact upon their own financial situations. Why?

Volatile markets. During times of heavy political disagreements, the markets often reflect that turmoil with sharp up-and-down swings. While the market is strong in general right now, many investors might still feel hesitant.

Lack of personal savings. Most financial experts recommend that consumers have the equivalent of at least six months’ worth of expenses saved in an easily accessible account. Yet, the median American household falls short of that goal (for most), having only $11,000 in savings.

Credit card use. Our collective credit card debt has now surpassed one trillion dollars, meaning most households are struggling under heavy debts that, in most cases, will cost them thousands in interest and require years to repay.

Stagnant wages. While wages have improved for some, average wages have grown at a rate less than 3 percent per year. That’s unusually slow for an economy with an unemployment rate in the single digits.

Lack of investments. Statistics show that 87 percent of people who had not invested in 2008 still have not invested by 2018.

It’s easy to see how the combination of stagnant wages and rising debts could lead to a lack of personal savings or investments. However, we remain confident in an overall strong economy, so that means we all must examine our personal finances on an individual level. Make an appointment with us to discuss your spending and savings strategies, and we can help you identify changes you could make. Together we can decrease your debts while increasing the amount you can save or invest for your future.