Are you wondering where the world economy is going and how your personal finances will stand up to the changes? If so, you are not alone. Part of the fun of being on this planet is planning for the future even when it’s not clear what will happen tomorrow or next week.
If you’re old enough to know who Gilligan is without watching syndicated reruns, then you’ve already been through a variety of economic conditions. Inflation, recession, economic booms and busts…today’s shifts are no shock to you. However, if you consider anything by Aerosmith, Savage Garden, and most “boy bands” to be an “oldie”, then today’s economic conditions may be new to you and you’re probably wondering what’s going on.
Maybe you’re one of the people who went through mass layoffs in virtually all industries in 2022. Maybe you’ve made a New Year’s resolution to become more financially stable in 2023. You might even be worried that this is the year that the economy will truly enter into the recession that many have predicted for quite some time.
Regardless, many surveys have shown that most Americans are living paycheck to paycheck and don’t have any type of a “rainy day fund” at all. In fact, one estimate puts it at roughly three out of every five people. Naturally, this can cause quite a bit of stress – especially given the general unpredictability of everything going on in the world.
Thankfully, all hope is not lost. If you want to relieve stress, the most important step you can take is to start building your emergency fund as soon as you’re able to – and it’s a lot more straightforward of a process than you might think.
There’s an old saying that reminds us “if you fail to plan, you plan to fail.” Whoever coined that phrase was talking about the world of small business accounting whether they realized it or not.
Financial and tax literacy aren’t just an important part of running a business. They’re literally the foundation upon which everything else is built. Tax literacy helps to make sure that you’re not only taking care of your obligations but that you’re not paying more money than you should ultimately have to. Financial literacy helps to avoid problems like cash flow issues which could cause even a seemingly successful business to close prematurely.
It’s hard to ignore the real-life impacts inflation is having. While gas and grocery prices are having the most immediate effect, the price of almost everything is going up. People who are looking for ways to counter the impact and preserve financial stability can start with these solutions. They’re accessible options that can make a real difference.