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Life has its ups and downs, sometimes not in equal measure. It could be at your workplace, in your business or even in your relationship. However, a recent report from Bankrate revealed that up to 56% of Americans are worried about money matters more than anything else. Money is a broad topic, but what exactly is keeping this huge percentage of Americans awake at night? This article dives deeper into the specific money issues and what you can do resolve them.

Losing Sleep Over Money

1. Daily Living Expenses

This is one of the biggest pain points for most Americans. Daily living expenses can get on your nerves and may lead to depression if you can’t meet them.

Putting food on the table, paying rent or even paying your child’s school fees may seem like a basic task, but without a job or any source of income, it’s easy to see why more than half of Americans are losing sleep.

Putting food on the table, paying rent or even paying your child’s school fees may seem like a basic task, but without a job or any source of income, it’s easy to see why more than half of Americans are losing sleep.

If you fall under this category, create a budget, which will allow you to monitor your spending. In turn, this will help you to cut back on unnecessary spending and eventually break away from this unhealthy cycle. You can then use the money to cater to the most important expenses in your home.

2. Clearing Credit Card Debt

Credit cards allow to you buy now and pay later and still earn rewards such as travel points and cashback if you hit a certain amount. While this may bring convenience to most Americans, a credit card can be dangerous for someone without money management skills.

Americans owe a staggering $1.04 trillion in credit card debt. This is according to the Federal Reserve, but that’s not all the Fed revealed. This is an increase from under $854 billion 5 years ago. About 40% of those in debt have enough income to clear their balances.

However, focus shifts to the remaining 60% who have soaring card balances with little income to clear these debts. As a result, this leads to a lot more in interest and even worse, a low credit score. Sometimes you may take help of online 10000 loan lender those are ready to give money in emergencies and with less formalities to get approved money up to $10,000.

You can get your sleep back. but this means eliminating your credit card debt. Start by evaluating all credit card balances and list them starting with the one with the highest interest rate all the way to the lowest. You’ll follow this order when repaying your debt.

There’s another way to clear your credit card debt. Consider applying for a zero APR balance transfer card. As the name suggests, this card allows you to transfer balances from other cards into a 0% APR card. This means you’ll pay the debt without any interest. Often, the promotion ranges from 6 to 24 months, so you will need to pay it off quickly.

3. Retirement Savings

If you’re in your 50s, your sunset years aren’t too far away. As such, you should be worried about the money set aside for your retirement. However, it’s never too late to start saving for retirement. On the other hand, if you’re in your 20s, there’s still time to contribute to your retirement.

Start by contributing to your 401(k) or IRA. In addition, consider investing your savings instead of stashing the money in a savings account where it earns negligible interest. For example, invest in the stock market where a solid portfolio can earn you an average of7% in yearly returns. At that rate, if you start saving $250 each month from when you’re 25 years for the next 40 years, you’ll have a handsome amount - $600,000 in retirement savings when you hit 65.

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4. Rent and Mortgage Payments

Housing takes up a huge chunk of Americans’ total income. However, financial experts recommend keeping housing costs at 30% of the total income. If you can get it lower than 30%, that’s better. For those renting, the 30 percent also covers insurance and rent payments. For homeowners, this percentage will take care of property taxes, insurance, and mortgage payments.

If you find out you’re spending way over 30% of your total income on housing, it’s time to consider other alternatives. This includes moving into a house with cheaper rent or finding a smaller home with lower costs.

5. Insurance and Healthcare

You’re only one huge medical bill away from being broke, especially if you don’t have any form of medical cover. Illnesses are a threat to your financial stability, and the fact that it comes unannounced is even more worrying. In fact, it’s a genuine reason why many Americans would lose sleep.

Affordable healthcare is still not within the reach of many Americans, which is why it’s important to prepare for any eventuality. Setting up an emergency fund is one way to prepare for the unexpected. Do this by putting away a certain percentage of your total income every month.

While at it, make sure you read and understand your insurance plan’s policies to know what it covers and what it doesn’t.

6. Education Costs

College tuition fees are on the rise. In fact, the college board puts the average increase at 3% per year. For an average four-year program at a public institution, the cost jumped 71% in the past 10 years. For the same course in a private college, the costs jumped 54% over the same time.

This translates to a total of $1.6 trillion in student debt. Therefore, each student carries an average of $34,144 in student loans. These costs not only deprive sleep from parents, but also from kids hoping to join college in the future.

To parents, if you want to get your financial security back, start saving as soon as the children are born. A 529 plan is the most efficient way to save for college education. First, because the money you invest in the plan benefits from tax-free growth and is only available for education purposes. Also, there are some states that offer tax incentives for contributing to this account.

7. Stock Market Uncertainties

Stock markets are known for their volatility, either to your advantage or disadvantage. While this may seem like a bad characteristic, the stock market has proven to be a great investment over time. Despite major economic downturns, the stock market has always found a way back. Therefore, you may want to move a certain percentage of your portfolio to the stock market. You may lose some sleep during uncertain times, but you’ll reap massive benefits in the long run.

Money is a concern for everyone, even the richest people. However, if it’s taking away your happiness, it’s time to take action. This article has outlined the various money issues keeping Americans awake all night, but the best part is that it also shares steps on how to counter them.

A financial advisor may come in handy if there are specific issues you want to address. Losing sleep may lead to health complications, which may cause more harm to your finances. Therefore, it’s in your best interest to find a permanent solution to your money problems.

Bruce T. Mullins