Nearly four agree in five Americans. Their financial position is a matter of concern.
More precisely, when asked about “current financial situation” earlier this year in a geek survey conducted online by Harris’ poll, 79% had certain concerns. 64% of Americans were worried about not saving enough money, 44% were worried about being too much debt, and 26% were worried about not making enough money.
Financial journeys vary from person to person, but some experiences may be more common than you understand. As revealed in the research, we provide some guidance for dealing with four of the most common money concerns.
1. Do not have sufficient storage due to emergency situations
According to the US Bureau of Economic Analysis, Americans save only about 4.3% of their income. Research shows that about two in five Americans (41%) are likely to be concerned that they are not saving enough money due to emergencies.
Maintaining respectable emergency funds can help you insulate your finances in the face of unexpected costs. This is a buffer. Therefore, it should be added to the money saved for other goals, such as retirement.
Ideally aim to increase your liquid savings by 3-6 times your monthly core cost. If that sounds daunting, start small. Use a savings target calculator to understand how much you need to set aside each month to reach your goal.
In addition to your savings account, we assess your insurance needs to ensure that your insurance coverage is covered for you and your loved ones in major emergency situations. You may consider disability insurance as illnesses and injuries that prevent you from working can quickly drain your savings. And if someone other than you are dependent on your income (children, spouse, elderly parents, etc.), life insurance can protect them in the event of your death. Some employers offer disability and life insurance as part of their benefits packages. Talk to your company’s HR experts.
2. Retirement savings are too low
Two in five Americans (39%) cited the survey’s financial concerns as “not having enough savings to retire.”
This is not at all surprising, according to a 2022 survey on consumer finances in the Federal Reserve. That’s despite a recent survey by the Transamerica Center for Retirement Studies found that 87% of Americans in the private sector plan to eventually retire.
So, what can you do?
One popular idea is the budget for 50/30/20. This suggests that you will use 20% of takeaway to save, invest in retirement benefits, and pay off your debts. We recommend taking advantage of the matches offered by the company in your workplace retirement account, such as the 401(k). You might also consider setting up other retirement accounts outside of your workplace, like the Roth IRA.
3. Too much credit card debt
One in four Americans (23%) are concerned that they have too much credit card debt. Nerdwallet’s annual household credit card debt survey found that Americans with credit card debt averaged over $10,000 in 2024.
Paying off this debt is a top priority as it costs money to carry your credit card balance from each month. There are many strategies to pay back these high profits.
One popular option known as a debt snowman focuses on repaying the smallest to largest balance. Once the initial balance is repaid, it can be applied more to the next small balance, etc. Another strategy – debt avalanches – requires you to spend that money on repaying your highest profit balance first.
Of course, the best debt payoff plan for you is something you stick to.
If your credit is in good condition, an interest-free or low interest balance transfer credit card can buy you time to deal with the debt load. If your credit is struggling and you can’t keep up with your payments, a debt management plan from a non-profit credit counseling company can reduce your balance and payments and make them more manageable.
4. Not making enough money
More than one in five Americans (21%) worry that they are not making enough money from my job.
This is another concern supported by the data. According to the Census Bureau, the growth in median personal income has been relatively flat since 2019, with the Bureau of Labor Statistics consistently finding that one of the university graduates is employed. In other words, work does not require an educational level.
The most direct solution is to seek a raise. These conversations can be difficult, but they are often worth the discomfort.
If you can’t get a pay raise, consider ways to make money outside of full-time work. This means part-time work or gig work if you have the ability to spend more time.
But more money may not be the answer. After all, research shows that concerns about too little money were similar across income groups, with no statistically significant differences between the highest and lowest incomes.
Luckily, people across the income spectrum can find ways to lower their monthly bills. Throwing off your unused subscription, finding cheaper mobile phone plans, and shopping for better insurance premiums is an easy way to get started.
There was a bit of good news in the investigation. About one in five Americans (21%) say they have no concern about their personal financial situation. According to 2024 data from the US Census, this is the same share of the population as Texas and California combined.
The complete research method is available in the original article published on Nerdwallet.
Daniel Lathrop writes for Nald Wallet. Email: article@nerdwallet.com.
I’m worried about the frequent money in Article 4. And what to do about them originally appeared in Nerdwallet.
