We need to talk about how to fend against inflation.
Because our society does not explicitly value financial literacy, there’s pressure on Americans to take a DIY approach, if you will. To get a grasp of personal finance and leverage some control, we read books, listen to podcasts, consult with advisors and so on. This is all important work that can really help, but alas, financial literacy in itself isn’t necessarily the ticket to financial solvency and peace of mind.
There are other serious money problems holding us back that need to be tackled head-on. We talked with finance experts to understand some of the most substantial hurdles Americans face related to their fiscal lives and got some answers as to how to overcome them.
“The number one money problem holding people back is living paycheck to paycheck,” said Clayton Wood, CFP, managing partner at C. B. Wood Financial LLC. “Most aspire to travel more, pay for education, buy a bigger house or nicer car and can’t because it doesn’t fit their current budget.”
As Wood sees it there are two solutions to manage this problem: Either find ways to earn more income — or better prioritize your values.
“Due to the current job market, people have a great opportunity to search for a new position that provides a higher income than their current occupation,” Wood said. “Because of this, employers know how difficult it is to retain an employee. Now more than ever, the employee has leverage to ask for a raise from their employer.”
Full-time employees should also consider taking on a side hustle if that is manageable for them and they feel that the extra time spent is worth the extra money earned.
“If earning extra income isn’t possible for your situation, we advise you to prioritize your interests,” Wood said. “Rank your wants and needs to analyze what’s most important in your life. If having a big house is on the bottom of your list, maybe it’s time to downsize, so you can afford more of what is on the top of your list.”
You can read the rest of the article at GOBankingRates.