Key Takeaways
- A recent study by the National Endowment for Financial Education revealed that the pandemic is causing many Americans to experience financial stress.
- Worries include a lack of emergency savings, ability to pay bills, and job security.
- Having an emergency fund available is crucial to help get you through crises now and in the future.
Have you ever had your eyes dilated by your ophthalmologist? A few drops go into your eyes, your eye doctor examines them, and then sends you on your way. When you walk outside, though, everything is so much brighter – it can be painful!
This brings to mind the bright light that the current pandemic has shone on many Americans’ financial situations. It’s been a harsh light for many, as a study by the National Endowment for Financial Education revealed in April.
Over 2,000 U.S. adults responded to the study which asked them to name the top five things causing them financial stress. Having enough money was the biggest concern, with 41% citing a lack of emergency savings and 23% being worried about retirement.
The ability to pay bills was another top concern, with 48% stating that they were worried about paying bills, 28% concerned about paying their rent or mortgage, and another 28% concerned about being able to pay for utilities.
Job security was yet another source of stress, with 39% of respondents stating they were worried about it. Not surprising, given what’s been going on with pandemic-related unemployment this year.
The point of all this is that it’s incredibly painful for people to be stretched so thin when it comes to money, having to worry about whether they’ll have enough to pay their bills and cover their expenses. And to be clear, the survey included people from a variety of income levels, indicating that a wide range of people have been affected. And we know that this virus was a shock to many – not just to the physical health of those who contracted it, but also to the mental health of those who realized that their money situations were not working for them.
It’s caused a lot of people to ask “What if this happens again?” and “What can I do differently in the future?” If this is you, now would be a good time to make sure you have emergency funds. Start a savings program – even if it’s just $5 a month that you automatically put into a separate savings account, it can make a difference.
You can start small, but just make sure to do something, because this could happen again, and we now know that the impact can be huge. But let this shock, this dilation of your mental understanding of who you are, be a catalyst to action. Do something now to prepare yourself for the future. Until next time, enjoy.
