Why do I struggle so much financially?
It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.
- Prioritize what you can control on discretionary spending.
- Find ways to earn more money.
- Pay essential bills.
- Save money during trying times.
- Track your money-saving progress.
- Talk to your lenders.
- Consult with an expert financial advisor.
You have too much debt relative to your income. You don't know how much debt you owe. You pay only the minimum on your credit cards. Your credit cards are maxed out.
They are rooted in psychological and behavioral deficiencies, such as lack of work ethic, lack of faith, lack of discipline, over-spending, excessive risk-taking in investments, greed, pride, and an insatiable desire to impress others.
Feelings associated with money
You might feel guilty for spending money, even if you know you can afford it. Or, you might feel guilty for seeking support, even if you know you need it. You might be afraid of looking at your bank balance or speaking to the bank. You might feel ashamed for needing support.
A new term, “money dysmorphia,” aims to describe the distorted view of one's finances that nearly one-third, or 29%, of Americans say they now experience, according to a recent report by Credit Karma, often from comparing their financial situation to others' and feeling inadequate.
If you don't have enough money to live on, you might be able to get help to afford essentials like bills and food. This includes the Household Support Fund and cost of living payments. You should check if you can claim benefits - you might be able to do this even if you work, have savings or own a home.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
Almost 40% of American adults report they struggle to make ends meet each month, an increase from 34.4% in 2022 and 26.7% in 2021. At 46.2%, Louisiana had the highest percentage reporting financial struggles followed by Mississippi (45.7%) and Arkansas (45.6%).
Is everyone struggling financially?
After inflation, high interest rates, unattainable housing prices and other economic factors, 50 percent of U.S. adults say their overall personal financial situation is worse than it was in November 2020, according to October 2023 Bankrate polling.
Debt stress syndrome is the name that doctors have given to a condition where concerns over debt lead to mental, emotional and even physical health problems.
Financial anxiety, or money anxiety, is a feeling of worry about your money situation. This can include your income, your job security, your debts, and your ability to afford necessities and non-essentials.
Similar to body dysmorphia, individuals with money dysmorphia may perceive themselves as either having significantly less or significantly more wealth than they actually possess. There is a disconnect between financial reality and perception.
In Hebrews 13, Paul reminds us to “keep our lives free from the love of money, and be content with what you have.” No matter how big your dreams are, remember to be content now. The God of the universe is for you, and that is more than enough.
“On average, Americans believe it takes approximately an additional $284,000 above feeling wealthy to really be 'worry-free. ' This 'wealth delta' depends greatly on where you are in life, with the difference being highest for those in their 30s and 40s — peaking at nearly $1 million.
Feeling beaten down by money worries can adversely impact your sleep, self-esteem, and energy levels. It can leave you feeling angry, ashamed, or fearful, fuel tension and arguments with those closest to you, exacerbate pain and mood swings, and even increase your risk of depression and anxiety.
Financial stress is a common struggle for many people. It can affect your mental and physical well-being and impact your overall quality of life. Money worries can come from different sources, including unexpected expenses, a sudden job loss or feeling unprepared for the future.
- Pathological Gambling: reoccurring gambling behaviors.
- Overspending and Compulsive Buying Disorder: overbearing need to buy things.
- Underspending and Compulsive Hoarding: problem with getting rid of things.
- Workaholism: feeling stressed when not working.
- Launch An Ecommerce Store.
- Become A Freelancer.
- Create and Sell Online Courses.
- Become An Influencer.
- Become An Uber/Lyft Driver.
- Online Tutoring.
- Become An Airbnb Host.
- Pet Sitting.
How do I stop living paycheck to paycheck?
- Get on a budget.
- Take care of your Four Walls first.
- Cut extra expenses.
- Start an emergency fund.
- Ditch debt.
- Increase your income.
- Live below your means.
- Save up for big purchases.
- Tip #1: Don't wait. ...
- Tip #2: Pay close attention to your budget. ...
- Tip #3: Increase your income. ...
- Tip #4: Start an emergency fund – even if it's just pennies. ...
- Tip #5: Be patient.
A popular standard for budgeting rent is to follow the 30% rule, where you spend a maximum of 30% of your monthly income before taxes (your gross income) on your rent.
Consider an individual who takes home $5,000 a month. Applying the 50/30/20 rule would give them a monthly budget of: 50% for mandatory expenses = $2,500. 20% to savings and debt repayment = $1,000.
The 20% rule is a good general guide, but it isn't the right fit for everyone. Some people can save above that rate, while others merely struggle to make ends meet. “Some people pay their rent and they have nothing left.
