A personal finance plan is an important item to consider, especially when a person is going through difficult times. This year may be a time where many individuals are cautious about their financial situation, and make alterations to their financial strategy to help improve their standing.
Nearly 70 percent of Americans think their job security will remain unchanged or potentially get worse this year, according to a report from Country Financial. Less than one-third think their situation will improve by the end of the year.
Spending may be something that is dialed back this year, as well. The report explained that three-quarters of Americans feel they will cut back on their spending or keep it at its usual level.
Despite these concerns, many individuals are taking their financial situation seriously. Nearly 40 percent of those polled think they will cut down on their debt levels this year, the report noted. A total of 20 percent said they would get this down by 10 percent or more.
“At a time when Americans are also experiencing low wage growth, it’s encouraging to see they are using their money to pay down debts, leaving little room for discretionary spending,” said Troy Frerichs, senior investment officer at Country Financial. “By curbing their spending and decreasing personal debt, Americans are better positioned to achieve financial security. Creating a financial plan and sticking to a budget helps to ensure that paying down debt the last few years won’t be in vain when times do get better. It helps to reduce uncertainty by focusing on things you can control, like what you do with your money.”
Separate report tells different story
Not everyone may be as worried about their personal finance situation as this. Credit is something that more Americans are taking seriously, as a report from Wells Fargo and Company noted that approximately six in 10 respondents looked at their credit score progress in the last 12 months.
Another 40 percent noted that they are proud of where their credit situation is at, the report said. Just 22 percent felt worried about where they stood credit-wise.
This boost in credit sentiment is also helping some look to invest in the next several months. The report added that four-fifths of those polled would purchase something worth $2,000 or more in the next year or two.