The 3 Money Issues Americans Face & Their Solutions

Overcoming financial challenge is a battle fought by millions of families each day. The fact is no matter what your financial status - no one is immune to money issues. Economic struggles come in many different forms and the constant management of your finances can be exhausting. Often this stress can infiltrate other areas of our lives and do further damage.

Don’t let money trouble consume your entire world. Life will have its ups and downs but there are methods everyone can practice to try and avoid such deep economic pitfalls. Face your finances head on and commit to practicing better habits starting today. Developing a healthier relationship with money over time will put you in a better position when it comes to tackling whatever curveball life throws your way.

Here are practical solutions to some of the most common money issues families face today:

1. Unable to Make Ends Meet

Struggling to make ends meet is an obstacle many families face today. With the high cost of living and basic necessities, most Americans feel like there isn’t enough money to last them until their next paycheck. The average American household spends most of its money - 62% of an average $56,000 in annual expenditures - on just three things: housing, transportation, and food. These means most of our funds are allotted for mortgage/rent, utilities, and groceries with little, if any, left for emergency savings. There are few steps you can take to try and balance your income and spending needs.

Solution

First make it a priority to create a working budget that fits your real life and actively manage that budget. Be sure to allocate money towards your goals. If you feel you’re money situation spinning out of control or you are struggling to make ends meet, take advantage of these educational resources that will be useful for a lifetime.

Consider taking up a second job. With a rise in part-time and remote work opportunities, lucrative side gigs like these to supplement yearly incomes are becoming more and more popular. Earning an extra income can make a real difference in your financial capabilities. In addition, these supplemental funds can help families prepare for future expenses and pay off debts sooner rather than later.

Seek out assistance programs that can help to lower your bills. There are government and nonprofit agencies that aim to provide low-income families with support to obtain basic necessities and help families achieve economic security and stability in a variety of ways. You can also check out the these Top Federal Food Assistance Programs.

2. Buried Under a Mountain of Debt

While the goal of many Americans is to build wealth, many find themselves building a mountain of debt. This goes hand in hand with issue # 1. In an attempt to make ends meet, we rely on credit cards and loans to pay for things. According to statistics, the average American household owes $6,375 in credit card debt. This can be overwhelming and as the bills keep piling it up, it may be hard to figure out what steps to take in order to get back on track. It’s important to stay hopeful because there are several things you can do to reach financial stability.

Solution

With a budget in place (see # 1) create a plan to tackle your outstanding debt and once it’s gone, vow not to rack up anymore. Use these simple steps to free yourself from financial burden and organize your outstanding debt. Then you can come up with a payment plan that works toward paying the higher interest cards first and maintaining minimum payments on your other accounts.

Explore government debt relief programs that can provide assistance with housing, utility bills, daily expenses, and medical bills. Federal and non-federal debt relief grants can help alleviate the financial burden of debt and pull families out of their economic crisis.

Stay on top of your credit score. Request a free copy of your credit report and review it regularly for any errors or inaccuracies. These errors will negatively impact your score so it’s best to monitor your credit report and dispute them with the credit bureau as soon as possible. You’ll want to maintain the best credit score possible to prevent your interest rests from increasing, making it more difficult to get out of debt.

3. Not Thinking About Your Future

It’s difficult to put away for tomorrow when you’re having trouble making ends meet today. Living for today instead of actively planning for your future is a big issue that many individuals struggle with on a daily basis. According to a new survey, 20% of Americans don’t save any of their annual income at all. Don’t make failing to save for retirement your biggest financial regret. There are small affordable steps you can take that will have a BIG impact on your financial future.

Solution

The sooner you start saving for retirement the longer your money has to grow. If your employer offers a 401(k) with a match on your contributions, that’s the first place to start. You'll get an instant 100% return on part of the money you invest in your 401(k). Your money will automatically be taken from your paycheck, so you don't even have to think about saving. Plus, it's deducted prior to being taxed so more of it can go to your retirement instead of the government. If you don’t have a 401(k) option at work, a Roth IRA may be a good fit for you. Many professionals even recommend having both investment accounts as they complement each other.

Life insurance is an essential part of your personal finances and holding a policy can provide tremendous benefits. Many experts recommend life insurance as an investment strategy and considering it costs less than your daily coffee, it's worth every penny. Some life insurance policies accumulate a cash value and a portion of your paid premium can be invested in the market or set aside to accumulate interest. The cash value of your policy can be used as collateral and be borrowed against or kept as an end-of-life payout. Equip yourself with essential knowledge and determine if Life Insurance is the right move for you and your family. Find out 4 Reasons Why You Need Life Insurance & How To Buy It.

Invest in yourself! In today's difficult economic times, finding employment isn’t easy. In order to get ahead of the competition and reach your earning potential, you must possess more than just experience and skill. To pursue the career of your dreams, a well-rounded education is key. Many eager individuals dismiss the thought of returning to school for a college degree due to the hefty price tag that comes with it. It’s important for all to know that the government provides free money education grants to help individuals pay for college. For many, a government grant for school can make the difference between living paycheck to paycheck struggling to make ends meet and being able to provide a stable and financially secure life for their family.