“I really am one flat tire away from being in extreme financial straits,” said Davis, who lives alone and has no other income.
In the last couple of years there has been so much uncertainty that it “perpetually creates anxiety,” McCoy said. But having a plan that you’re working toward, whether it’s building up your savings or paying down debt, can give you a feeling of power and control.
Orly Hersh and her family made the decision to move in with her mother five years ago, to her childhood home in Boulder, Colorado. That allowed her mother to grow old in her home and for them to stay in the city they loved. She and her husband, both teachers, cannot buy a house.
“It’s been a huge win-win situation for everyone,” said Hersh, 53, a mother of two.
While they save on housing costs, Colorado now has one of the inflationary costs highest in the country and the increase in prices has taken a large part of its budget. To pay the bill for her youngest daughter’s recent hospitalization, they will have to tap into Hersh’s retirement fund, “which is depressing,” she said.
But, he added, it’s best to pay it off as soon as possible, for the sake of your stress level. “I really hate having this debt on top of my head,” she said.
Explore different types of professional help
Finding a financial advisor can help anyone seeking financial literacy. Maybe, for example, you lack budgeting tips, or maybe you want to learn the basics of investing. If what worries you is how much it costs, in the United States you can turn to the Association for Financial Counseling and Education in Planning, which offers a free virtual counseling session for anyone experiencing financial uncertainty.