5 Money Problems that Americans Face
The general assumption is that only the lower income earners face financial issues. However, the fact is that most Americans face financial issues at one point or the other. The goal of every working class citizen is to achieve financial security, but even then, one will often wonder whether the security is full proof and long-standing for the future. Based on research, Americans face these money problems:
Debt is one of the greatest money problems being faced by all Americans on all sides of the social class divide. For that reason, a lot of the earnings go into settling a debt, which in turn creates a deficit in other areas of financial expenditure. Student loans are in large part one of the greatest debt that Americans have to settle, creating a huge financial problem for a great many people.
With essential expenditure on Medicare and Medicaid being projected to grow in coming years, it is no wonder that necessary expenditure is among the list of money problems that Americans face. At best, one is left with close to nothing for savings and wants after paying bills. At worst, one has to devise a budget that borders on the essentials and removes all the comforts. Such is the dilemma of the middle to low-income earners when it comes to necessary expenditure.
Poor investment decisions
A high percentage of Americans make investment decisions without having thought everything through. Poor financial decisions on how to spend the money earned results in the loss of a large part of the income. The problem is that this then creates a chain reaction of a financial deficit that spills over to other areas of expenditure; for instance, savings and debt.
Tax percentages are at about 18% of the GDP, with local and state percentages being even higher. This may not be a direct result of personal choice or expenditure but it creates a money problem all the same. Policies are greatly to blame for the effect of high taxation, which mostly falls on the middle and low-income earners. However, that is not to say that high-income earners do not feel the pinch of taxation either.
Lack of savings plans
A great deal of the American population is focused on spending their money on the here-and-now. Coupled with the fact that pension funds in themselves are a contributory factor to the factor, you get a huge financial problem. Without savings, there is little in store for the future, creating a burden for others and the government, which results in yet another chain reaction of financial problems.