Concerns about personal finance and how consumers are dealing with financial distress are valid. National consumer debt has risen to $2,572 billion in 2012 and that has the potential for dragging personal satisfaction with life down the drain. Your psychological well-being is closely related to your financial well being. People need to develop personal finance skills that are critical to building a stable financial future. The level of financial distress people feel directly affects their personal sense of happiness.
The Delphi Study of Experts’ Rankings of Personal Finance Concepts showed that the top two financial concerns that people worry about the most are having enough money to cover monthly expenses and living on a paycheck to paycheck basis.
The National Foundation for Credit Counseling has released information about consumer behavior in relationship to budgeting, spending and saving money, which has been given on a yearly basis since 2007. Thousands of people were asked a series of questions. Answers to those questions brought to light some interesting data.
First, the most important skill deemed by the financial experts is that of budgeting and tracking expenses. A shocking 56% of adults surveyed said they didn’t have a budget and didn’t track their expenses. If this is the way you handle your financial matters, then it is time to improve your skills.
Secondly, one third (more than 77 million adults) say that they do not pay all of their bills on time every month. At this point, if you are in that category, you need to look into online banking and get your bills set up on auto pilot. This will help to pay bills on time. It also lessens the amount of things you have to remember to do. If your problem is low income, it is time to do something about that and get creative.
Thirdly, thirty nine percent of Americans carry credit card debt from month to month. Nothing will help this problem unless you get a grasp on the fact that having no revolving debt is a lifetime goal and should be adhered to regularly. It is far too easy to say to yourself that you’ll have the money later. Often later doesn’t come and soon you are paying interest on a monthly basis too.
Fourthly, thirty nine percent have no personal savings other than retirement savings. The bare minimum is $1,000 just for emergencies. The best situation is having three to six months living expenses. The tricky thing about building this up is replacing it when you have to use it. The peace of mind you have when you have funds available far exceeds the joy you can get from the latest toys.
How confident do you feel about your ability to meet your expenses? How confident do you feel in the strategies you use to add to savings and investments? How confident do you feel in your ability to take care of your past debt? The more confident you feel in meeting these needs, the happier you will feel. If you are far from feeling confident, you can always reach out and start to learn how to live life differently. There are many organizations devoted to helping you to reach your financial goals. Some of them are the U.S. Department of Treasury, The Bureau of Consumer Financial Protection, local colleges, local credit counseling agencies and community groups. Find the source that best meets your needs and work towards improving your personal financial well-being.
Consumers can save money on banking supplies by buying online. Your savings can add up.
