Most of America Doesn’t See Their Financial Situation Improving in 2019

A new survey by Bankrate revealed that 55% of America doesn’t expect their financial situation to improve by 2019. This is counterintuitive, your finances should improve every year by developing your career and saving more. Some blips on the radar could come from economic downturns, but that should be the exception instead of the rule.

Why Much of America Doesn’t Think Their Financial Situation Will Improve

When asked why they don’t think their finances will improve, nearly half claimed it was due to politicians in Washington DC. 38% claimed it was due to a higher cost of living, while 37% blamed their increasing debt.

Another 19% of people blamed rising interest rates on dimming their financial outlook. Rising interest rates is helpful for savers, as they’ll make more in savings account interest.

Rising rates are bad for borrowers, since they’ll have to pay more for every $1 they loan out. They also harm businesses – if people have to pay more interest for a house or car, they may purchase something smaller. These rates reverberate across the economy.

How To Improve Your Financial Outlook

Don’t worry about what you can’t control

Most of the survey responses are completely outside your control. You can’t control what politicians do, and you can’t control the cost of living.

Rates are also outside of your control – the federal reserve moves interest rates to balance unemployment with inflation. You should definitely respond to rate movements, but you can’t worry about what the federal reserve may do next.

There are always going to be things outside of your control. Spending your time on it brings unnecessary stress, and will distract you from what you can control.

Focus on what you can control

Out of all the reasons people cited, only their debt load can be controlled by them. As interest rates go up and the cost of borrowing increases, you should lower your debt loads. We’re seeing business do the same thing.

There is a lot more you can control than just your debt. You can control your income by negotiating for a raise, and control your cost of living by cutting expenses.

Avoid lifestyle inflation as you make more money. If you constantly spend the extra money you make, you’ll be living paycheck to paycheck with no end in site.

Helping America Improve Their Financial Situation – The Bottom Line

Each new year should be a better year for you financially. You have one more year of work experience, and one more year of savings under your belt.

Unfortunately, over half of America doesn’t feel their financial situation will improve in 2019. If you’re part of the majority and feel similar, change your mindset on what you can and can’t control.

Focusing your time on what you can control can help you make quick changes to your financial situation. By making a little more money and cutting a few costs, you’ll be setting yourself up for a successful 2019.