A post-pandemic study found that more than three-quarters of working age Americans have experienced inflation-related stress in recent years. And despite lowering rates of inflation, stress levels continue to rise. On today’s show, we’re going to unpack what’s going on with inflation anxiety.
We’re going to talk about how rising prices and mental health, the future of the economy, and how to weather the storms of inflation. Click play on this episode of Investing in Real Estate to learn more!
More About This Show
Worrying about money is nothing new, but we know that finances are a key social determinant of our health. With the cost of living rising, retirement plans producing lackluster results, and credit card debt figures through the roof, it’s no wonder that people across the country are stressed about their finances.
A poll by Gallup found that 45% of Americans rate the economy as poor, and 63% say that high prices are causing moderate or severe financial hardships in their lives.
The pressure is only increasing as wages aren’t keeping up with the rates of inflation and the costs of goods. More and more people are living paycheck-to-paycheck, or worse, relying on their credit cards to get by. On top of this the overall fear of losing jobs has exploded across the country. People are just barely getting by, and losing their sole form of income could be disastrous.
When we look at all of the factors that play into the economy, inflation is one of the key factors that impacts the daily lives of Americans. When you compare inflation to factors like housing prices or interest rates, inflation is something that people are feeling in their everyday routine in a very real way. It’s hard to turn a blind eye when it’s costing you $100 to fill up your gas tank, or 4 to 5 dollars for a dozen eggs.
Even though recent reports are showing cooling inflation, this doesn’t help that the prices of everything have risen – people get those two things conflated. So even if inflation is down a bit, we’re still seeing high costs at the grocery store, the gas pump, and everywhere else. And unfortunately, there’s no relief in sight. Those prices are not likely to go back down anytime soon.
These elevated prices are the new normal in today’s economy. The cost of many goods, including groceries, skyrocketed during the pandemic, but they haven’t gone down. In fact, companies are continuing to raise their prices and expanding their profits on a regular basis. Companies have seen the consumer is expecting prices to rise, so they know they can get away with charging whatever they’d like.
Inflation anxiety is a real thing. Americans are stressed that everything, including their daily necessities are increasingly expensive. But this level of economic uncertainty isn’t going away. Higher prices aren’t subsiding. Even though inflation has cooled, we could see it mount again soon.
And that’s not all – we’re also seeing record high consumer debt and national debt. The future of the dollar is uncertain. It’s an election year. I have other videos here on the channel where I explore the implications of what’s happening in the economy. But the point is, there are countless factors that are not looking good for the American people…
With that in mind, it’s important to remember that we cannot allow these external factors to dictate our quality of life. The Fed is playing a balancing act, trying to reduce inflation without triggering a recession… We’re in a really interesting spot when it comes to interest rates and inflation, and I’m not sure there’s a clear way out.
As I’ve been saying here on this channel, there’s never been a more important time to get your finances in order, pay down expensive debt, and start building sustainable streams of income. Instead of feeling uneasy and anxious about all of these factors that we cannot control, I hope the resources on this channel can help you feel empowered about your ability to create your financial future.
Whether you buy tangible assets like real estate and gold, invest in notes, or start a side hustle, it’s time to build out a plan that can help you weather inflation, higher rates, and whatever else is in store for us in the coming years.
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