Many Americans feel nervous about their finances. Half of the adults living in the U.S. report not feeling this level of monetary anxiety in over a decade. Perhaps you include yourself in this group.
There are still ways to improve your financial situation, even if you have the lowest credit score possible. With proper monetary habits, you can improve your score and build up a nest egg.
We’ll talk about why the situation seems untenable for some Americans. We’ll go over some of the actions you can take to improve your financial standing since some consumers aren’t clear on that.
Your Credit Score
Let’s start by discussing your credit score and credit limit. Low credit scores are part of what has some Americans nervous.
Your credit score reflects how likely you are to pay back a loan a lending entity gives you. When lending entities decide whether they’ll grant you a loan, they normally look at your FICO score. It ranges from 300 to 850. This differs from your credit limit. Your credit limit is how much credit a lender will grant you.
Some Americans have lower credit scores, and they’re reaching the upper end of their credit limit, meaning they can’t borrow much more.
Now, let’s talk about the financial factors forcing some Americans into this position.
Rising inflation that makes necessities more expensive is part of what has many U.S. residents nervous. Inflation relates to the cost of goods and services that people need. When inflation takes hold, the cost of everything in society rises.
Inflation is an accepted part of how the economy works. What’s concerning is when the rise of inflation doesn’t correspond to the average person’s ability to keep paying those higher prices.
Some Americans are also concerned about their wages remaining stagnant. This ties directly back to inflation.
If your pay is rising at a rate that is commensurate with inflation, that means you can keep paying for things like groceries, utilities, and rent with no issues. If your pay rate is not rising fast enough to keep up with inflation, that’s when you may start feeling the pinch.
What Can You Do About This Issue?
If you’re uncertain about what you can do to combat rising inflation and stagnant wages, there are some possibilities worth pursuing. You might look into higher education. By doing so, you make yourself a more attractive job candidate.
College can be expensive, but many states have either free tuition or discounted tuition that lets you attend community colleges. If you’ve got a high school education or a GED, you can look into these programs. Getting a college degree can propel you to a higher-paying job.
What Else Can You Do?
You can ask for a raise at work. You can cite how long you’ve been there and what you’ve done for the company as reasons to justify your boss paying you more.
You might start looking for higher-paying positions. The younger generations are less inclined to stay with the same business entity for many years.
Their willingness to jump from one company to the next often proves beneficial. You shouldn’t feel inclined to show any company loyalty if the entity for which you work seems unwilling to compensate you adequately for your services.
You Can Improve Your Financial Situation
Even with inflation and stagnant wages in some parts of the country, you can usually find a way to better your financial position. You can look into whether your state offers free or discounted community college. Many of them do, and getting a degree will look great on your resume.
You can ask for a raise or promotion at work. If your company is unwilling to do that, you can hunt for other jobs in your field. You shouldn’t show loyalty to a company that doesn’t value you enough.
These tips should help if you’re feeling insecure about your finances in 2023.
Name: Michael Bertini
Job Title: Consultant
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