The article below highlights the challenges for people who are living paycheck-to-paycheck. The sad situation is that a nationwide online study of 25,000 American adults found that while “just over two-fifths of respondents (41%) report spending less than their income, 36% spend about EQUAL to their income, and 19% spend MORE than their income.”
Only 35% are “certain they could come up with the full $2,000” if an unexpected need for $2,000 came up within the next month. Similarly, 40% claimed to have set aside 3 months or more in an emergency fund.
What happens when you consistently live paycheck-to-paycheck?
- You go into serious debt if income stops coming in, and then you pay high interest on that debt
- You are always stressed out about financial risk and hardship
- You aren’t able to build sufficient emergency savings
- You will never save anything for retirement and will be working until death
- You will never achieve financial independence
- You will not be able to save up for an occasional vacation, home improvement, education, etc.
- You really can’t work towards ANY future goals that are reliant on saved assets
https://20somethingfinance.com/percentage-of-americans-living-paycheck-to-paycheck/
Financial Therapy with Elaine Korngold
Financial Therapy focuses on the emotions, behaviors, and beliefs around financial issues and helps you achieve a more healthy, realistic and empowered relationship with money. Financial Therapy is insight-oriented and addresses the process of one’s relationship to money on a deep level. It can also help you identify tactical improvement strategies and brainstorm implementable changes.
Financial therapy can help resolve your money issues and change the direction of your financial future as we work together in our therapy sessions to:
- Explore innermost feelings, thoughts, hopes, and fears about money
- Address emotional issues that interfere with effective financial decision-making
- Identify money behaviors and patterns that get in the way of reaching goals
- Clarify, re-assess, and re-align values and priorities
- Develop a healthier, more realistic relationship with money, and a plan for managing it
- Reduce money-related stresses and conflicts, and improve family relationships
Please contact me to schedule a free 20-minute phone consultation and to learn more.