Current state of U.S. Economy according to Americans : In inaugural State of Money in America report, Stash finds out how majority of Americans are feeling about state of economy & their personal financial plans. Economic changes could impact more than just your bank account. As market shifts they can affect way you perceive your financial situation & future youll have.
2022 has seen number of & sometimes conflicting, shifts within economic landscape: most significant increase in inflation since 1980s; low unemployment,and more debt than ever before. In summer of 2018, Stash conducted its first annual State of Money in America study to discover what Americans feel about money & their personal financial wellbeing.
The research was conducted in partnership with Prodege leading worldwide market research firm. total number of respondents was 2,028. Americans aged 18 or older were polled in survey, with total surveys sample size matching benchmarks of census.
What did Stashs study find
It was found that respondents are unsure about state of economy currently, however positive about future. Nearly two thirds [ 62 percent ] believed that theyll be more prosperous in 2023 than currently. They also want to start investing in savings in near in future. Although 90% of those interviewed said they would like to create wealth of their lives but majority reported that they didnt know what to do first.
The data also shows that respondents havent completed one of essential actions: opening brokerage account. This survey revealed that majority of American people are able to access savings [ 69 percent ] as well as checking [ 83 percent ] as well as retirement accounts [ 49 percent ] however only 31% have no retirement savings accounts.
Seventy percent Americans have cautious outlook on their financial prospects
People who took part in survey are satisfied with their financial prospects. Seventy percent reported feeling confident or at least somewhat confident about their financial outlook. majority of respondents [ 60 percent ] stated that in current circumstances of world today that its better to make sure that their funds are liquid, or easily accessible, so they will be able to use money in an emergency.
Current condition of financial well being within U.S.
In survey, participants were also asked to provide description of their budget. majority of respondents said they had grasped expenses they incur each month, however savings on daily basis seems out of reach to many:
If asked whether they feel that they have sufficient funds to meet demands of costs of an emergency, more than two thirds respondents said they very or somewhat believe that they have. More than half said they not often or at all, drawing from savings in order to pay costs & bills on monthly basis. But still, third said they are living paycheck to paycheck, or not able to cover their expenses. which makes it difficult & even impossible to save.
The effects from pandemic upon financial health
A reason that people are having trouble to save money could be because this pandemic has had major impacts on economy overall which has led to job losses as well as shifts to domestic workers & much more. Although 51% of poll participants said that disease has not had any impact on their financial situation while remaining half claimed they felt it affected their financial health. 38% of respondents stated that it had an impact on their finances however 11% of respondents said it had an impact on their financial health.
Debt in U.S.
Debt is on top of peoples minds today. At end of fourth quarter of 2021 U.S. consumer debt approached $16 trillion. It was most significant quarterly rise in last year which was mainly due to mortgage debt. major contributors to debt are auto & student loans.
Theres no reason to be surprised that when Stash asked its customers how they would spend $10 million top three options were to pay off debt [ 29 percent ] & buying brand new house [ 16 percent ] or investing further [ 14 percent ].
Debt reduction is not an easy task among those who were surveyed With 39% of people of respondents saying that paying down debt is something theyre on track to reach in next twelve months. Following that 28 percent of Americans declare that theyre looking to buy vehicle.
The majority of Americans are either very or comfortable with their financial expertise
The majority of those surveyed claimed that they were taught about finances & investing through personal experience or through family influence. In addition to retirement savings majority [ 52 percent ] of people surveyed began investing between between ages of 18 & 30.
As it pertains to investments One third of those surveyed felt very confident with their abilities, while 41% reported feeling slightly certain. majority of respondents [ 51 percent ] feel that theyre financialally better off than colleagues.
About half people who are currently saving for retirement in savings accounts such as 401[ k ] as well as an individual retirement account [ IRA ] reported that they arent sure about savings accounts.
Do not trade. but invest.
Never trade, however we recommend investing instead. It is way to predict direction of market & to predict which way itll take over next few months.
It is very complicated,and ensuring that you are investing is key to long term performance. In spite of some market volatility that weve experienced in last couple of days, as of yesterday night, S&P500 has only fallen 0.5 percent over last year.
if you take long term view index is up by 41% in last three years,and more than 200% in past 10 years. Numerous studies have shown that investors trying to predict markets & then sell in times of volatility often miss huge gains that usually are result.
In past year, Bank of America did an analysis of returns on market from 1930. results from 1930 to 2020 it was up 17715 percent. If you exclude top 10 days of every decade. which is basically just one trading day each year, total gain would be only just 28%..
In time, markets tend to increase. This chart shows some very dramatic sell offs from past like Dotcom bust as well as mortgage crisis which caused recession in 2009 and, most recently, sale that occurred in March of 2020, when Covid epidemic began.
Financial health as component of overall health
Being financially healthy is an essential aspect of overall wellness. 86% of those who took part said they viewed financial wellbeing as component of their overall health. Maintaining good handle on your finances is an important consideration in many households, with over one third of those who took part in surveys considering stocks, money & crypto more frequently than sex.
Being able to manage your money effectively can allow you to maintain an active lifestyle. nearly half say theyd eat healthier or better when they had extra funds. Another third reported having missed medical appointments due to cost of their healthcare. In spite of this study on finances as well as quality of life when asked if theyd prefer to become millionaire, or have privilege of being best buddies with pop star Lizzo majority chose Lizzo.
Its shame that we couldnt let to make close to Lizzo. If youre looking to increase your wealth but are struggling to determine where to begin or feel like youre not able to like majority of people who took part in survey Stash is best starting point. Stash provides you with an accessible & cost effective platform for making first investment of your life, while offering you all information & tools that youll need in process regardless of how much knowledge youve gained. Our goal is to help people like Americans increase their wealth by eliminating any obstacles in achieving this target.