While many people may be looking for ways to strengthen their budgeting, there could be a sizable number of the population who are not doing enough. Failing to prepare for an individual’s financial future may have many negative consequences, so many people may want to solve this issue as soon as possible.
More than one-quarter of those individuals who may invest in the future lack a financial strategy, according to a report from Nationwide Funds. Nearly 40 percent of those surveyed noted that they do not have one of these options, and they are not thinking about ever initiating one.
Almost one-third of those without a strategy explained they just haven’t sat down and taken care of it, the report showed. Another one-fifth of those polled explained that having one of these was just not necessary. More than 15 percent were in the dark on how they could actually create a plan for the future.
“We live in an era when Americans are more responsible for their own financial security than ever before,” said Michael Spangler, president of Nationwide Funds. “However, for various reasons, far too many haven’t taken the time to draft a detailed financial plan to help them achieve their goals over the short, medium and long terms.”
Student loans remain a problem for many
Not having financial strategies to help encourage budgeting and the proper payment of bills can hinder a person’s retirement prospects. One of these major issues involves student debt, as a growing number of young professionals have a significant amount of money attached to their budgets.
Approximately one-sixth of Americans are in the process of paying off loans from college, according to a report from FindLaw.com. The average amount outstanding for these consumers is $25,000. However, not everyone is struggling with a significant amount of money, as less than 10 percent of those consumers are dealing with $50,000 or more in debt.
“As the cost of a college education has risen, so has the number of graduates carrying a substantial amount of student loan debt,” said Stephanie Rahlfs, attorney-editor with FindLaw.com. “Ideally, students use their degrees to land well-paying jobs and quickly pay off their loans. But job markets are cyclical and careers don’t always go according to plan. Student loans can be a big financial burden, but there are various options available to those who are unable to repay their loans.”