The year 2022 is here, and with it comes a whole host of predictions, forecasts and uncertainties. Just like 2021, the year 2022 was highly anticipated as it marks a continuation in the struggle against COVID-19 and the rebuilding of the American economy. Just like Americans everywhere, Floridians have been heavily impacted by the coronavirus and its variants. Part of the impact has been economic. This year, as you attempt to prosper and thrive in the face of plenty of obstacles, you should add money management and financial literacy to your “New Year” resolutions.
In survey and survey, Americans show a startlingly low of financial literacy, on average. Many reports from reputable sources show that many Americans struggle when it comes to balancing their monthly budgets, dealing with credit card debt, or paying back student loans. Many people suffer greatly because of deficiencies in these areas. This year, put in the work and turn around your fiscal management skills and improve your financial literacy.
Let’s consider a few reasons why these goals should be your resolutions for 2022.
Economic Future is Still Uncertain
A big reason why money management and financial literacy should be resolutions is that the economic future is still very much uncertain at this point in time. Although the economy has recovered in some ways and in some areas, the long-term picture is still developing. We could very well see significant drops in productivity, particularly in some sectors, and we could see a lackluster performance in 2022. This means that you need to be extra cautious, and it also means that financial skills will be all the more valuable. If you make better decisions with your finances, you will be able to navigate the future more effectively.
Saving / Investing is the Right Mentality
Part of the problem when it comes to American financial habits in general is lack of a saving and investing mentality. Americans tend to have a “spend first” mindset, and this certainly causes problems. This is a large reason why many Americans struggle with credit card debt. Develop a budget and create a habit of saving a specific portion of your after-tax income on a monthly basis. If you adopt this mentality, and have sufficient willpower, you’ll be amazed at how much you can amass in a relatively short period of time. This spend first mindset afflicts everyone, by the way, not just those who tend to be lower-earners. Numerous studies have shown that a sizable percentage of Americans who earn 6 figures annually are unable to handle an unexpected emergency expense. Break this habit and begin the process of saving, investing and managing your funds better.
Breaking the Cycle Requires Effort & Sacrifice
New Year resolutions are often highly effective because they represent a “fresh start” when it comes to tackling a problem. This is why you need to add money management and financial literacy to your resolutions. You need to break the cycle of wasteful spending habits and financial illiteracy, and perhaps the best way to do this is simply to “dive all in” and make a serious effort right at the start of the year. In other words, financial habits call for a resolution more than other habits, because bad financial habits are especially hard to kick.
Remember, Bankruptcy Can Be a Helpful Avenue
While you should undoubtedly strive to develop money management skills and financial literacy for long-term growth and improvement, you should also remember that bankruptcy can often be a good way to resolve debt and achieve a fresh start. Perhaps bankruptcy can represent the initial step on your longer journey toward improved financial skills. This is certainly one possible avenue to consider.
Contact Financial Freedom Advocates for More Information
If you need more information, don’t hesitate to contact Financial Freedom Advocates today by calling 786-668-6688.