If you are financially stressed out these days, you are far from being alone. These are rocky and uncertain times we live in and the stress levels are super high.
A number of recent polls have confirmed that Americans are currently financially troubled.
For example, a survey by the National Endowment for Financial Education found that a whopping nine in ten Americans say the COVID-19 crisis is putting a strain on their personal finances. Most worry that they haven’t saved enough or are unable to pay bills.
A poll by John Hancock Financial found that nearly a quarter of Americans were immersed in their emergency savings during the pandemic.
Surveys show three main causes of financial stress. We have strategies to address all three:
1. Fear of the uncertain future
Are you afraid of losing your job? Are you nervous about what’s going to happen next? That’s why it’s important to have an emergency fund as a backup – just in case.
An emergency fund is a stash of easily accessible cash equivalent to three to six months’ salary in the event that you unexpectedly lose your job. And millions of us unexpectedly lost our jobs in 2020.
With the Aspiration Spend account, you can earn up to 5% cashback on your debit card purchases. With the Aspiration Save account (which is used to process your tax refund), you can earn up to 20 times the average interest on your savings. (The FDIC reports that the average account only earns 0.05%.)
Registration takes five minutes.
2. Fear of falling behind on credit card debt
The pandemic and its shutdowns and job losses have forced more Americans to resort to their credit cards to pay their bills and for necessities like groceries. For those who are still struggling, managing credit card debt is a tremendous source of stress.
Can you imagine waking up with no credit card debt? Whether you are stressed out about being in debt forever or just fed up with high interest rates, this would be a huge relief.
You can reduce your credit card debt even faster with a free website called AmOne.
AmOne compares you to a low-interest loan that allows you to pay off all your credit cards at once. Interest rates start at 3.99% – well below the 20% or more you are likely to pay with your credit card company. That could save you thousands in the long run. Plus, you’ll be out of debt much faster.
It takes two minutes to see if you qualify for up to $ 50,000.
3. Fear of death and leaving your family in an attachment
During the pandemic, interest in life insurance has grown dramatically as more Americans realize they likely need it.
Overall, Americans took out about 10% more life insurance policies in 2020 than they did in 2019. That doesn’t seem like much, but it’s actually the biggest increase in nearly two decades.
Also, more and more people are looking for life insurance without an exam because they don’t want to go to a doctor’s office for a personal check-up. Companies like Bestow use algorithms instead of medical exams to evaluate applicants.
Prices start at just $ 16 per month. You could leave your family up to $ 1 million. Knowing that your family is being looked after is invaluable.
If you’re under 54 and want a quick quote on life insurance without leaving your home, get a free quote from Bestow.
4. Another way not to let your family down
Another way to financially look after your family is to invest. Investing is how you build generational wealth.
If you feel that you don’t have enough money to invest, you are not alone. But guess what? You really don’t need that much – and you can even get free shares (worth up to $ 200!) If you know where to look.
Whether you have $ 5, $ 100, or $ 800 left, Robinhood is your investment.
Yes, you’ve probably heard of Robinhood. Both beginners and professionals love it because it has no commission fees and you can buy and sell stocks for free – with no limits. Plus, it’s super easy to use.
What is the best? When you download the app and top up your account (it doesn’t take more than a few minutes), Robinhood will put some of the free shares in your account. It’s random, however, so stocks can be valued between $ 2.50 and $ 200 – a nice boost to help you build your investments.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He’s not incredibly stressed out at all, no sir, why would you even think that?