Experts: “Keep your hands on the steering wheel, We may be on a hell of a ride at the verge of a recession.”
The hardship on paying bills is a subject that concerns at least half of the population in the USA. Recent years’ statistics have shown that difficulties were being experienced by a wide range of the population, especially for those in the range of 18 to 36 years old. If being a young adult wasn’t hard enough, it is time to learn and pay attention to your wallet ASAP.
Overall, 4 of every 10 Americans are struggling to pay basic needs such as food and housing bills since 2018. But we have been surprised by the fact that in only 3 weeks after the pandemic lockdown, over 30 million Americans filed unemployment benefits. The picture is just not getting prettier with COVID-19.
As far as 2020 goes, statistics have shown that there is an average of 5 million single parent-led households in the United States from which around 80% of them are led by single mothers. Also, indicators show that women, black Americans, Hispanic Americans and young adults are more likely to struggle to meet their basic expenditure needs. If you have identified yourself in these groups, you will understand the vulnerable position and the risks you are in today.
Covid-19 has applied a greater impact on our homes as the pandemic is taking its toll on the economy for which our thoughts must be focusing on how to get sustainable to slowly get back on track.
We should all get serious about this! This is a historical impact!
In non-pandemic times, household expenses fluctuate on a month-to-month basis by which low and middle income families in the USA have manifested they were already experiencing an extraordinary bill shock. Regularly happening, two or three times a year, an unexpected emergency holds them back from saving money and a period of more than 12 months to recover from such a financial bump. These extraordinary events were normally recorded for medical emergencies, car or home reparations. If it was hard before, it will be even harder to establish a home financial plan to follow up your spending rhythm due to the arising health issues, unemployment and uncertainty that the COVID-19 novel brings for the next weeks or months. We still don’t know.
Think about how high our bills will skyrocket while we increase the demand for electricity and water while the entire family works and studies from home. We need to be aware of this. It is important for the majority of us, from our respective corners during this massive social isolation, to start restructuring our home financial plan and take a look in retrospective to define what we can do better to stay afloat.
Bloomberg has developed a high frequency tracker and market-base indicators to show us the depth of the downturn, already considered the steepest fall since the 40’s. You can also use UJ utilities tracking dashboard to keep your home expenses graphs handy. It will be a pretty cool tool available for you very soon and you can request for a financial advisor from UJ’s team to help you go through your graphs and explain your current expenditure situation.
As the economy shrinks, your budget should be held tight. Use the digital assistance available to help you prepare (this is the digital era for goodness sake, right?), stay resilient and jump this bump. We are all in this together.