Let’s be honest, even if it’s not at its worst- your money situation could be better. 2 in 3 Americans are unconfident with their finances. Although 36% have a positive relationship with money, 45% feel their relationship with money is worrisome. More interestingly, 33% describe their relationship with money as worrisome. What’s everyone doing with their money? Is budgeting even a thing anymore?
Let this soak in: most Americans are debt-free or are actively paying down their debt – 79% of Americans, to be exact. 65% of Americans have an emergency fund, and 48% of Americans actively save a minimum of 5% of their income.
Following simple steps such as the aforementioned can transform your financial future. Reflect on the basics of good money management. In fact, those with a financial plan are twice as likely to make progress toward their goals and reach the lifestyle they imagine for themselves. While financial planning isn’t for everyone, budgeting is universally applicable. Budgeting also has an assortment of benefits.
62% of people with a budget feel in control, 55% feel confident, and 52% feel secure. On the other hand; those without a budget feel out of control (19%), worried (18%), and stressed (17%).
Don’t feel inferior- 2 in 5 have never had a budget. Even more, more than 1 in 3 spend more than they save. 2 in 3 Americans also easily overspend when using their credit card(s). Transforming your future is a matter of replacing your current habits with spending that aligns with your goals.
So, what are your goals?
Ask yourself: how do I want to spend my time? What career would make me eager to jump out of bed every morning? Discover what makes you excited to learn.
Keep our economical state in mind when tending to your financial wellbeing- less than 2 in 3 Americans are confident they can afford a comfortable retirement. 15% have a written retirement strategy, but 40% of Americans don’t know how their retirement investments are allocated and 75% aren’t even sure how much they should be saving.
Unbeknown to most, Millennials and Gen Xers are less invested in equities than Boomers are. As a result, we (Millennials and Gen Xers) may find our retirement portfolios to be underfunded.
The point is to be conscious of your financial health. Budget to cover your life expectancy, not foreseeable future. In the words of Jim Rohn, author of The Art of Exceptional Living, “Time is more valuable than money.” Use your money to improve your life. Of course, money can’t buy happiness, but it can free your time- reducing stress from your hectic lifestyle and opening up time for things to bring joy into your life.
One way to use your money to free your time would be to purchase tech to do your household and personal chores. For example, the iRobot “Roomba” and “Braava” are computerized vacuums and mops you can control from your phone. The Worx Landroid can mow your law every day and automatically return to your charger- even skipping rainy days to avoid damage. Several apps can improve your life as well.
Smart financial decisions can broaden your life choices. Read more information on the benefits of budgeting in the infographic below.
You may also be interested in: The Pros and Cons of Buying First vs. Selling First
Writer: Demetrius HarrisonDisclaimer: All investing can potentially be risky. Investing or borrowing can lead into financial losses. All content on Bay Street Blog are solely for educational purposes. All other information are obtained from credible and authoritative references. Bay Street Blog is not responsible for any financial losses from the information provided. When investing or borrowing, always consult with an industry professional.