In the past two decades, nearly one in three American workers run out of money before their next paycheck, according to a recent study by the Federal Reserve Bank of St. Louis. The study states that since the mid-1980s, half of all American workers have experienced financial hardship due to unexpected expenses such as medical bills, home repairs and vehicle breakdowns.
What to do when you are running out of money before payday
You must be willing to cut back on your lifestyle to make ends meet. You may want to cut back on your monthly bills. You may need to rethink your personal spending habits if you are not careful about where you put your money.
There is also the possibility that you will need to get a new lease on life if you have fallen behind on your bills. It may be wise to invest in a debt consolidation loan or other means of building a savings account and then receiving an installment on a monthly basis.
If you do not have access to a local bank, there are several lending companies that specialize in assisting people with their financial issues. The discounted instant online loans from Bridge payday can help you.
To avoid running out of money, you should begin saving now. If you want to eliminate your financial stress, save ahead of time so that you have money to fall back on when your unexpected expenses occur.
Those who do not understand the extent of the problem
The financial difficulties are likely to continue for some time because the middle class continues to grow. It is no wonder that such financial turmoil affects the daily lives of many American workers. Yet there are those who do not understand the extent of the problem.
For many people, getting to and from work each day is their top priority. However, when they do get to work, there is usually no cash to cover their expenses. The unexpected medical bill will quickly turn into a monthly grocery bill. Even when a person has a salary that is sufficient to cover all of their bills, there is often only a week or two’s salary left over at the end of the month.
Nearly one in three American workers have run out of money in a given month, according to the study. At this point, it is unlikely that a person will be able to pay off the bill that has been accumulating over the month. They will either go further in debt or stop paying the bills altogether.
Being unable to afford a car in order to get to work
Those who get behind on their bills have the additional burden of being unable to afford a car in order to get to work. Many people don’t have the option of taking public transportation to their jobs anymore because the roads and bridges are congested.
However, low-wage jobs aren’t the only problem. The study also shows that nearly one in three American workers have no emergency savings. By comparison, the population as a whole has an average of approximately six months of savings.
If you think that your income is not enough to cover your living expenses, it is time to start saving money. This will ensure that you have the funds to make it through a short-term financial emergency. The most important factor is to prioritize your bills before the rest of your bills.
Your long-term situation will determine how much money you need to save. You will find yourself in a financial crisis when your monthly bills are so high that it is difficult to pay them. Additionally, when your emergency expenses exceed your savings, you will need to consult a financial planner and/or professional financial adviser in order to determine how to make extra money to pay your bills.