Credit usage is on the rise.
Recent numbers show that Americans are using credit more often this year than they have in the past. At the end of the 1st Quarter of 2022, personal loan balances totaled $177.9 billion, compared to $143.7 billion in the same period of 2021. (Source: TransUnion) Credit card debt dipped during the pandemic in 2020—falling to $770 billion in the 1st quarter of 2021 from $927 billion in the 4th quarter of 2019. Today, we’ve reached $841 billion, and the upward trend continues. (Source: LendingTree).
Have you adjusted your lifestyle to accommodate inflation? Are you scaling back on purchases and choosing to skip on non-essential expenses? Are you actively budgeting? Do you HAVE a budget? If you fall into these categories, WELL DONE!! Keep up the good work and remember to talk to your kids about WHY you have chosen to live a more frugal lifestyle.
Do you want to make changes but don’t know how? Here are some ideas to get you started:
CREATE A BUDGET. If you don’t have one in place, this is an opportune time to create one with the family. You can find free budget templates online with a quick search.
ACTIVATE YOUR BUDGET. For a budget to be effective, it must be actively used. Check your actual spending versus your budget numbers at least weekly. You’ll quickly recognize simple lifestyle changes you can make that will have an immediate impact on your bottom line.
USE THE TOOLS. Don’t forget to take advantage of the free tools available to you that will help you stay on track. Most banks offer free online banking and apps so you can check your accounts regularly. A quick internet search will lead you to free budgeting apps that will track your spending in real time.
TALK. A blessing that can come from our current economy is an opportunity to have open and honest communication with your family, friends and loved ones. Gathering to talk about our fears and anxieties can lead to a healthy discussion about the promises of the Lord and how He works in our lives for the good.
Be on the lookout for the money traps the enemy puts in our lives. The devil wants us to live in fear and hopelessness and ensnare us in debt bondage. But remember! “For God has not given us a spirit of fear, but of power and of love and of sound mind.” (2 Timothy 1:7 NKJV). Cast your cares and anxieties on Him because He loves you.
Need any help talking sound money habits with your young adults? Send me a direct message at sara@stewardshipadvisoryservices.com. I’m here to help YOU equip, encourage, and prepare your loved ones for the financial world that awaits them.