Are problems with money keeping you up at night?
If you worry about how you are going to manage this month, you’re not the only one.
Many Americans nowadays face financial issues that their grandparents didn’t have. Below, we are going to go through 5 of the worst money problems people now face and compare them with what people had 50 years ago.
Nowadays, people are stressed about saving for retirement and also about their retirement timeline. Most of them are afraid that they won’t be able to retire early because they can’t save for it. If this is you, you should start planning for retirement as soon as you can.
To start with, you should speak with a reputable advisor to choose an amount of money you are comfortable contributing to this. Besides, if you can, don’t put your child’s saving for college before your retirement strategy.
In comparison, 50 years ago over 40% of Americans who worked in the private sector were covered by pension plans. Everything changed when people started to live longer and companies couldn’t cover their retirement age.
Identity theft existed many years ago, but only when Internet and online banking came in, did identity theft become a huge problem. In 2014, almost 13 million consumers lost money to this issue.
In order to minimize risks, you should check your credit report periodically and shred any important financial documents. You can also utilize services that will notify you of any changes to your credit report.
Nowadays, even strong and healthy people are susceptible to medical emergencies. No one is immune to sudden diseases that require years to recover. If you got one, would you be able to cover the medical expenses?
A good idea is to have a special account where you keep enough money to cover a minimum of six months of expenses. There is also a Health Savings Account, where you could contribute to in order to be able to pay medical bills.
50 years ago most people were almost completely covered by their insurance. In the modern world, the US government spends over $3 trillion on health care and it’s not enough to cover the expenses.
Credit Cards Weren’t Popular
Credit cards got popular in late 1970 and today most Americans have at least one card, but often two or even three. And with cards came the debt, with an average balance of $15,355.
The best advice we can give is to pay off your credit cards monthly. You can quickly get into debt and it can be hard to get yourself out. So, why not save for your next big purchase so you can pay the bill off in the first cycle?
Americans feel worried about not having enough money to cover emergencies. 50 years ago, the average debt was less than $4000, while today it is almost $130000!
This number includes loans, mortgages and student loans.
If you’re in debt, you should do everything to pay it off and start saving for retirement.
Here’s What To Do Now
If you would like to avoid these common financial pitfalls and put a comprehensive financial plan in place, contact Calvert Investment Counsel at 410-435-3270 to speak with one of our advisors now to get a plan for a brighter financial future.