Easy ways to save money and build wealth: Many Americans feel like they are falling behind financially, and recent surveys confirm it, according to Navigator, 53% of Americans reported feeling behind where they expected to be financially this year. The same percentage said they feel uneasy about their finances over the next few months, with 26% describing themselves as “very” uneasy, as per a report. Rising inflation and economic uncertainty are likely driving these worries.
Despite this widespread anxiety, hitting just one simple financial milestone can put you ahead of roughly half the country. Experts say that if you meet any one of these three benchmarks, you’re already in better financial shape than many of your peers.
1. Not living paycheck-to-paycheckAbout 57% of American adults report living paycheck-to-paycheck, according to MarketWatch Guides, as per a Moneywise report. Younger generations are even more affected, with 65% of millennials and 72% of Gen Z reporting that they barely have money left after covering basic expenses like rent and utilities, as per the report.
Living paycheck-to-paycheck can make it difficult to save, build an emergency fund, or spend on occasional treats. Simply being able to save a little each month, whether by cutting expenses or increasing income, already puts you ahead of more than half of Americans, as per the Moneywise report.
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2. Not worrying about finances constantlyMoney worries are common, 52% of Americans say they think about money daily, and 34% report losing sleep over financial concerns, according to Ramsey Solutions, as per the report.If you’re able to take breaks from worrying about finances, consider yourself ahead of the game. Financial stability not only helps your bank account but can also improve mental health.ALSO READ: Mark Mobius warns of 40% crash in AI stocks, calls it a classic bubble in the making3. Saving at least some money for retirementEven modest retirement savings can put you ahead. Gallup reports that 59% of Americans have at least some money saved in a retirement account, though only 39% of adults aged 18 to 29 have invested in a plan, as per the Moneywise report.
Saving for retirement early, even in small amounts, places you ahead of a significant portion of your peers. Diversifying retirement savings can also provide added security, as per the Moneywise report.
FAQsHow much of the population lives paycheck-to-paycheck?
About 57% of adults overall, with millennials and Gen Z more likely to struggle.
Does financial stability impact mental health?
Yes, being less worried about money can improve both your finances and your overall well-being.