64% of Americans are living paycheck to paycheck, up from 61% a year ago and in line with the historic high first hit in March 2020.
For its part, the Federal Reserve is widely expected to announce its eighth consecutive rate hike at this week’s policy meeting.
Even though wage growth is high by historical standards, it isn’t keeping up with the increased cost of living, which in December was up 6.5% from the prior year.
That leaves many Americans in a bind as inflation and higher prices force more people to dip into their cash reserves or lean on credit just when interest rates rise at the fastest pace in decades.
Other reports also show financial well-being is deteriorating overall.
Getting your budget back on track
- Cut spending
Some simple financial hacks can help, such as going to the grocery store less and cutting back on online shopping.
Grocery stores are just like Las Vegas; they are there to separate you from your wallet. Meal planning is one way to edit down your shopping list to weekly essentials and save money.
Disabling one-click ordering or deleting stored credit card information can also help. Anyone that shops on Amazon and has a stored credit card, you are basically pouring lighter fluid on your budget.
Wait 24 hours before making an online purchase and then use a price-tracking browser extension to find the best price.
Finally, tap a savings tool, which automatically applies a coupon code to your online order, and pay with a cash-back card, which can earn you rewards.
You really have to get disciplined or you’re going to outspend your income!
- Boost savings
The money you put away should also work to your advantage.
Although deposit rates are climbing, even a high-yield savings account won’t pay enough to keep up with the rising cost of living.
Buying short-term, relatively risk-free Treasury bonds and laddering them to ensure you earn the best rates, a strategy that entails holding bonds to the end of their term.
It’s not a huge return but you are not going to lose your money.
Another option is to purchase federal I bonds, which are inflation-protected and nearly risk-free assets.
I bonds are currently paying 6.89% annual interest on new purchases through April, down from the 9.62% yearly rate offered from May through October 2022.
Still, this will work well as a hedge against inflation for long-term savers. The downside is that you can’t redeem I bonds for one year, and you’ll pay the last three months of interest if cashed in before five years.
- Help yourself
Start a side hustle, sell your excess belongings on eBay, affiliate market products/services online… whatever you’re able to do – do it, all of it!
The sooner you realize that LIFE IS HARD and your have to WORK HARD, the sooner you’ll put your excuses aside and press forward.
Forward to the life you desire and more importantly the life you deserve.
That doesn’t come easy – in fact, it comes with many discomforts.
But if you’re willing to do it and if you see TRADING as one of your hustles to get you where you want to be… I’d like to PERSONALLY help you!