Summary
The number of adults who said their finances were worse compared to a year earlier was 35%, the U.S. Federal Reserve found. The number of people who said they had more money than they needed was also higher.
Ask yourself if you really need items that keep you paying every month, year after year. Consider things like streaming services and high-end gym memberships. A cheaper gym may get the job done, allowing you to save the difference.
If you're buying more than you need, you might be burning through money that could have been saved or used to pay off debt. When it comes to buying a home, bigger is not necessarily better. Unless you have a large family, choosing a 6,000-square-foot home will only mean more expensive taxes, maintenance, and utilities.
The U.S. household personal savings rate was just 3.6% in April 2024. A three-month buffer could be the difference between keeping or losing your house.
Even the most disciplined planners have a tough time placing money aside to rebuild these accounts. Your financial future depends on what's going on right now. Make this a priority now.
Overspending on a home can strain monthly budgets due to higher taxes, maintenance costs, repairs and repairs and maintenance, and utilities. Using home equity like a piggy bank, whether through refinancing or a home equity line of credit (HELOC), can have detrimental consequences. While it may provide access to cash, it comes at the cost of increased debt and interest payments.
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