4 Things To Do Right Now To Feel More Financially Secure
Financial security is a growing concern for many Americans.
A recent report from Resume Now reveals some grim numbers for Americans:
Only 12% of workers say their paychecks are keeping up with inflation
Just 17% of Americans feel capable of paying for essentials and saving
65% report the cost of everyday necessities as their biggest stressor
92% have trimmed back their spending, including on items that are considered essential
49% have had to withdraw from savings
24% have incurred debt
For impacted Americans, it can feel like there's no way out. But there are some things you can do today to move toward financial security.
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Create a Plan
Creating a budget is often the best way to achieve financially security. In fact, not having one may indicate a lack of financial literacy, according to Dave Ramsey.
Keith Spencer, career expert at Resume Now, says it's not that simple. "Budgeting alone can only go so far," he explained. "There's a real limit to how much people can cut when they're already spending primarily on essentials."
Budgeting, while helpful, is only one part of a holistic plan to stay ahead of struggles. And, according to Spencer, it should play a smaller role in an overall inventory-level review of your finances.
"That might mean prioritizing income stability where possible, avoiding further erosion of savings and making incremental career or pay decisions over time, rather than assuming deeper and deeper cutbacks will eventually solve the problem."
The ultimate goal is to determine what you can realistically do now to improve your finances.
Wisely Ask for a Raise
Requesting a raise during a tough job climate may seem unwise or even impossible. Fortunately, that's not the case. Asking for a pay bump during a difficult job market is often still advisable. Positioning your request thoughtfully is important, though.
"What's more likely to resonate is making the case in business terms," Spencer said. "That means pointing to specific ways your work contributes to growth, efficiency or productivity, especially in a lean environment. For employers facing tight budgets, retaining someone who already knows the role, systems and team is often less costly than hiring and training a replacement."
If you position the ask around your value, you may succeed, ultimately helping you get ahead of bills.
Take Advantage of Workplace Benefits
You may think of 401(k) matching or health insurance as the only benefits that your employer offers that can help you save money. That's not the case. If your finances are struggling, don't overlook your employment perks as a way to cut costs.
"Taking time to review existing benefits, ask questions and use them more strategically can lower monthly expenses without requiring additional income or deeper cutbacks," said Spencer.
Potential benefits you can use include wellness programs, company discounts, child care support, commuter benefits and more. Speak with your group benefits department to learn what's available and how it can help save you money with minimal effort.
Avoid Credit Cards, If You Can
Credit card debt can be suffocating, especially during challenging economic times. Incurring high-interest debt, while understandable, makes it more difficult to achieve financial security once larger struggles subside.
"Repeatedly draining savings, relying on credit or delaying healthcare can create deeper financial risk over time," added Spencer. Rather than rely on credit, look for ways make a career change that may increase income or consider a side hustle to avoid burdensome debt.
Many Americans don't want to fall further behind financially. The current state of the economy makes that a challenge. Being realistic with your finances, extending yourself grace and making purposeful choices can often help you get your head above water and get on solid ground.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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