Having a nest egg or backup plan for unforeseen events is something financial experts have always recommended. Although some people took heed to this advice, most weren’t prepared for the financial repercussions of a global pandemic. People took pay cuts, lost their jobs (and businesses), had to bury loved ones, and somehow still maintain everyday expenses. As bills became more expensive, emergency savings dwindled, leaving them in over their heads.
Although government assistance programs, stimulus packages, and business loans provided some relief, it wasn’t enough to help financially-strapped Americans get back on their feet. Ultimately, lots of people decided to take matters into their own hands by improving their finances. Here’s a look at some of the trends in personal finance.
Lots of Americans relied on credit cards during the pandemic to cover everyday expenses. Unfortunately, most didn’t have the means to pay the balances down. Some people paid just the minimum, while others skipped the bill altogether. The increasing balances became too much to handle and consequently ruined their credit. So, they turned to debt consolidation as a means of relief.
Debt consolidation is essentially the restructuring of your credit card debts. Companies like Brice Capital offer a loan to pay off credit card balances that may be out of control. Eligible applicants benefit because they’re getting lower interest rates, fewer monthly payments, and a more structured way to repay their debts while saving money. Websites like BriceCapital.com provided affordable solutions that helped lots of people get back on track.
Investing is another personal finance trend that’s increased since the start of the pandemic. Living in a life of uncertainty prompted many Americans to start thinking about their future. By placing some of their hard-earned money in investments with positive ROI, they can generate wealth without having to work so hard.
Although there are plenty of investments to consider, there’s been a rise in real estate, the stock market, and cryptocurrency. With proper management and informed decision-making, investors can acquire the funds they need to put their children through college, enjoy retirement, cover emergencies, or start a business.
Job security is at an all-time low, monthly expenses are increasing, and most people don’t have enough money to continue weathering the storm. Having an additional income source makes things more manageable. The money can go towards outstanding debt, savings, investments, or extracurricular activities. There’s also the fact that should unemployment arise in the future; a side gig serves as a backup plan.
These days, side gigs are very common. No matter your education level, professional experience, or skill set, there’s an opportunity to make some extra cash. You can go old-school by maintaining lawns, walking dogs, or babysitting. There are also opportunities like ridesharing, tutoring, blogging, podcasts, and more. These side gigs can be done in your spare time and generate a sizeable income. The best part is they’re scalable, so you can always turn them into a full-time business down the line.
Now that people understand the importance of managing their finances, they’ve started making sound shopping decisions. Rather than spending money on things they don’t need, they’re committed to cutting back to sustain a decent living. There’s been an increase in the use of budget applications, coupons, discount finders, and other money-saving tools to reduce wasteful spending. Maintaining these practices has enabled people to find savings in places they never thought possible. The additional funds are applied to monthly expenses, debt, savings, and investments.
The global pandemic has wreaked havoc on the finances of the average American. The challenge to stay afloat while everything crumbles around you was more than most could bear. These financial struggles prompted millions of people to get their finances in order so they can continue weathering the storm. Financial management practices like investing, side gigs, mindful spending, and debt consolidation assistance through sites like BriceCaptial.com have ultimately helped many Americans regain control.