With 2023 coming to a close, I wanted to produce a short guide on how to correct your finances before we head into the year 2024.
1. The Debt Burden: Many people face challenges managing and paying off various forms of debt, including credit cards, student loans, and mortgages.
– Write down your debts, in priority from scariest to least scary. Start paying off the worst of them.
2. Limited Savings: A significant portion of the population struggles to build substantial savings, making it difficult to handle unexpected expenses or save for long-term goals.
– Get motivated. Start small, each paycheck put $5.00 away for you. If you think that’s too simple, try it and come back to me in a few months.
3. Insufficient Income: Some individuals experience financial stress due to low wages or unstable employment, making it challenging to cover basic living expenses.
– Apply to some new jobs. In 2023 the best way to increase your income is to start jumping from job to job. Company loyalty only makes the company you work for richer – your best financial interest is NOT their priority.
4. Healthcare Costs: The high cost of healthcare, including insurance premiums, deductibles, and out-of-pocket expenses, poses a substantial financial burden for many Americans.
– Have you considered signing up for the Affordable Care Act? Have you considered alternatives (such as the military, or moving to another country such as Germany)? Have you tried to negotiate better coverage through your current employer? Something to consider
5. Retirement Planning: Planning for retirement becomes challenging for those who lack access to employer-sponsored retirement plans or face obstacles in contributing to such plans.
– Have you opened an account with Acorn? Through them, you can round up the nearest dollar with each purchase, and they’ll invest it for you in an IRA. Some retirement savings are better than none! And social security is not likely going to cover your living expenses.
6. Housing Expenses: Rising housing costs, whether in rent or mortgage payments, can strain household budgets and contribute to financial difficulties.
– Do you live alone in a 4 bedroom house and hate how much it costs? Have you considered having roommates? Even if it’s just for a few months – that can minimize your housing expenses significantly. Roommates not your preference? Do you have friends or family that you can lean on while you get your affairs in order? It’s likely worth the short term sacrifice. We just have to be willing to make that sacrifice.
Edited to add: You could also potentially downsize! There’s nothing wrong with moving into a slightly smaller accommodation if you’re trying to get in line with your financial goals. Go from a 4 bedroom house to a 3 bedroom apartment if it suits your financial goals.
7. Education Expenses: The cost of education, including tuition and student loans, is a significant financial concern for individuals and families striving for higher education.
– College in the US may not be your cup of tea. Don’t fret – vocational schools exist. Learn a trade (such as carpentry, truck driving, plumbing, solar installation). Can’t afford any form of school right now? Don’t take out a loan – research a grant (such as the Pell Grant) and see if you’re eligible. It’s likely that a program will be able to give you the few thousands that you will need to learn a skill. It can change your life
8. Unemployment and Underemployment: Job insecurity and the inability to secure full-time, well-paying employment contribute to financial instability for many Americans.
– I recognize the job market in 2023 is ROUGH. With that in mind – there are companies that are currently hiring – you just have to be willing to submit 10+ applications per day. Cast a wide net – Amazon, Meta, Google and others are constantly looking for workers. Persistence and determination are KEY to finding a new job. And if this fails, the Army is still looking for new recruits (I’m not advocating for the Army, they just have really lax requirements and pay you and your families healthcare).
9. Financial Literacy: Limited understanding of personal finance and inadequate financial education can lead to poor financial decisions, hindering individuals from effectively managing their money.
– Hell, you’re already working on your financial literacy if you’re reading this blog. Look – I don’t have all the answers. But I aim to inform as many as I can about how to improve your financial well-being. Continue to read and execute. Some additional learning resources are the following (and none of them are sponsors, I just really enjoy their content and knowledge):
10. You can do this. I didn’t have these resources when I was growing up, and I had to do a LOT of self study in the past 10 years of my military service in order to make up for my lack of knowledge. But I can promise you, it’s something worth learning about. As we being 2023 to a close, be optimistic about what next year holds. Stay safe out there.
-Michael, with Military.cash
P.s. No, there weren’t actually 10 difficulties listed – sue me. But thank you for making it to the end. I’d love to hear your feedback. If you want to get social, follow me on Instagram @military.cash
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