Americans have survived a few brushes with economic uncertainty over the past few years. In 2019, roughly 800,000 federal employees and contractors were furloughed for a little over a month, leaving many scrambling to cover bills. In 2020, the COVID-19 pandemic briefly stalled the economy, forcing some businesses to close and lay off their employees. But those disruptions didn't prepare families for the financial pain wreaked by the steep rise in the prices for everything from gas to groceries.
The cost of goods and services rose 9.1% in June-a 40-year high and Kiplinger forecasts that the inflation rate will end the year at 8% to 9%. There's no sign it will return to normal anytime soon, which has heightened financial anxiety for millions of families.
Overall, Americans are reducing their spending, and some are looking for extra income. Two-thirds of respondents surveyed by CIT Bank said they were cutting back on spending, and 38% said they're postponing major purchases. In addition, 85% said inflation is making it harder for them to save. The bear market, which is caused at least in part by the Federal Reserve's inflation-fighting stance, is also putting pressure on American households.
To keep their heads above water, some Americans are turning to side gigs for extra income. Others are driving less or cutting back on summer vacation plans. Still others have enough in savings to tough it out. But even those who are financially above water are rearranging some aspects of their daily lives.
ASKING TEENAGE DAUGHTERS TO CHIP IN
Denne historien er fra September 2022-utgaven av Kiplinger's Personal Finance.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 2022-utgaven av Kiplinger's Personal Finance.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
My Top 30 Index: An Update
A year ago, I put together what I called \"my own reinvention\" of the Dow Jones industrial average, the popular 142-year-old large-cap index.
Balance Your Risk and Reward
These new ETFs let you cut stock market losses. But you'll sacrifice some gains.
IS A HYBRID CAR RIGHT FOR YOU?
Hybrids offer a fuel-saving option for drivers who have reservations about all-electric vehicles. But there are trade-offs.
HOW TO REACH YOUR INVESTING GOALS
Patience helped these four investors make their portfolios work for them.
WHERE TO INVEST NOW
Expect a lot of midyear churn, with a rally toward the end of 2024.
TIPS FOR FINANCING A HOME PROJECT
I recently had a call with a client who was looking to fund the construction of a swimming pool at his house.
MORE WOMEN THAN EVER ARE STARTING BUSINESSES
Retail and travel businesses, along with health, beauty and fitness, are popular with women entrepreneurs.
Finding Home Health Care
It’s important to hire a caregiver you trust.
UNDERSTANDING BOND FUND YIELDS
What's a 30-day SEC yield? A trailing 12-month yield? A yield to maturity? We explain what each measure says about an income fund.
ANSWERS TO YOUR QUESTIONS ON STUDENT LOANS
If you have federal student loans, you may benefit from new government policies. Here's what you need to know.