Americans Are Running Out of Money

Inflation is something that’s largely talked about in general terms, but you’ll probably hear more anecdotal stories in the coming weeks. 

It affects everyone to different degrees, so what may be a minor annoyance for some will be a very real problem for many others. 

And according to recent polling, far more people are falling into the latter category. 

A new report by Salary Finance says that 66% of American workers are worse off financially than they were this time last year because of inflation.

How inflation is affecting Americans.

High earners are also feeling the squeeze. Half of people making over $100,000 a year said that they were worse off than the year before. 

That means we’re seeing a few different outcomes. Some people are having to dip into savings to make ends meet. Others are seeing their savings get wiped out entirely. 

Of those surveyed, 32% reported running out of money between pay periods. 

So, as you can see, a good number of people are in dire straits economically. 

At this point, the anxiety is palpable. 

Whether you fear a coming recession or think one is already here, the fact that more people are worried about their finances is something that can’t be ignored. 

The media certainly isn’t. 

There were headlines last week about Jeff Bezos and Elon Musk warning about a recession coming. 

Economists surveyed by The Wall Street Journal have said there is a two-thirds chance the US sees a recession in 2023 — less attention grabbing than name-dropping two of the world’s billionaires, but no less ominous. 

The president said recently he doesn’t think a recession is coming, but why would he? 

Elections are coming up. Even if they weren’t, saying that he sees a recession coming is the kind of thing that damages public sentiment and possibly accelerates what’s on the horizon. 

So, with everything going on, from the general feeling to quotes by billionaires, CEOs, and economists, the best way to look at all of this is that you’re being told without actually being told. 

The country’s leaders seem to be flip-flopping between ignoring what’s coming and blaming whichever side they aren’t on for the conditions we’re in. What they aren’t doing is taking steps to either avoid or at least mitigate the damage that we’re already seeing, even as signs point to that damage getting worse.

So most people are getting mixed messages on just how healthy the economy is and what it will look like in a few months. 

With that being the case, the best thing to do is hope for the best and prepare for the worst, with the emphasis being on preparation. 

That not only includes actions like making sure you have enough savings, but working to make sure your investments are the right ones for the environment. 

That seems like a tougher task with the market being down almost across the board, but it’s not impossible. 

Certain investments could save your portfolio and help it thrive over the next few years. It’s just a matter of picking the right ones that will beat the market. 

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle