5 Common Financial Concerns
Many of us take for granted how quickly the modern lifestyle seems to come and go. In a year, we might plan out what our next Christmas will look like. In a lifetime, we’ll probably never think about our finances at all, let alone plan them out in advance. It’s easy to get caught up in the whirlwind of life and forget that these are major concerns. If you’re not careful, they will catch up with you. It’s when they do catch up to you that things become complicated.
Common Concerns People Might Have
Financial concerns are common, whether you are a young adult or an old person. It doesn’t matter how much money you make, or if you have trouble affording certain things or can’t pay your bills. You need to keep in mind that managing your finances isn’t just about having enough, it’s about how you’re going to spend what you do have.
According to Dr. Jordan Sudberg, these common financial concerns are just a few things you should make yourself aware of so you can have good habits and avoid potential pitfalls in your life.
1. Poor Credit
If you have poor credit, it is going to be a major concern for you. You may be denied loans that you want, or have to pay higher interest rates on those loans than you should have. You could also find that it is more difficult to rent an apartment or a place in the city.
Many people find themselves with credit card debt, or other forms of debt. This can be especially hard to manage, as you are paying interest on it. It can also be an obstacle to receiving loans such as a mortgage. If you have college student loans, they may affect what you can do with your savings, or how much you’ll make when you’re in the workforce.
3. No Savings
If you do not have any savings, this can be a cause for concern. If something devastating happens to you or your family, such as a sudden illness or car breakdown, the lack of savings could prove to be devastating. The issue here is that you may need to make an immediate purchase of an item that cannot wait until things start to settle down. You’ll need to fill in the gap with credit cards or other types of loans. This is how many people find themselves in financial trouble.
4. A Lack Of Insurance
This could be a major concern to you, especially if you have children. You might not be able to afford the type of insurance that would cover the cost of their health care if they were to get sick. You may also not have enough money to pay for their college education or help with a down payment on a house.
If you are not properly invested for your retirement, this will be a concern. Retirement is going to be important someday, and if you haven’t prepared for it, it could really hurt you down the road. You may not have enough money to live comfortably when your career comes to an end.
How To Avoid These Concerns
The best way to avoid these concerns is to plan ahead and to anticipate problems that might eventually come up in your life. This will help you avoid them or work through them when they come up. As Dr. Jordan Sudberg points out, proper planning is going to help you avoid many of these concerns.