Survey: 23% of Americans answered that they are worse off economically than during the financial crisis

About ten years have passed since the financial crisis hit the economic situation of Americans, but many Americans are still struggling to recover.

According to a Bankrate survey that provides personal financial services, one in four Americans says their financial situation has not changed since the financial crisis, and 23% say it has worsened compared to then.

A major factor is wage stagnation.

Although the job market has improved in recent years, a survey shows that 54% of Americans say their wages have not returned to pre-crisis levels.

If the next recession occurs, those who have not recovered from the financial crisis will face even tougher conditions.

However, there are steps you can take to improve the situation.

1.Review your spending

If you are still feeling the effects of the financial crisis, you may need to rethink your spending and cut back.

The simplest method is to create a budget, identify items where spending is higher than necessary, and reduce those expenditures.

Cutting back on dining out or canceling a gym membership you rarely use could save well over 100,000 yen per year.

By budgeting and tracking spending, you can make smarter decisions.

2.Increase liquidity

A big reason many people were hurt by the financial crisis was the lack of liquidity to cover living expenses during unemployment.

To avoid repeating the same mistake, try to save three to six months of living expenses as a cushion.

If you lose your job in the future, that fund will be helpful and may provide a sense of security without panic.

3.Reduce debt

The less debt you have, the more peace of mind you’ll have.

If you have credit card debt, paying it off as soon as possible can save interest costs.

Additionally, if you’re carrying a large mortgage, consider downsizing to a smaller home to reduce living expenses in the process.

If you can live without a car, you might consider letting it go to save on maintenance and insurance costs.

4.Increase income

Increasing income can help you recover financially, manage expenses, save, and reduce debt. Note that you can’t simply demand a raise from your supervisor out of the blue.

However, by improving your skills, you can apply for promotions and raises that reflect those skills.

You should also consider side work. That way your income will increase reliably, and in the event of another recession, you may still have some form of work on hand.

The financial crisis affected many people.

If you continue to feel its effects, changing how you spend and manage money can help you take steps to improve your economic situation.

This is Motifool Japan's main site here >>

Free report subscription

For Motifool’s entry into Japan, we are freely distributing to Japanese investors and those who wish to start investing, a “How to Approach Stock Investing - Special Free Report -”.

Additionally, as the UK’s Brexit approaches, we are freely distributing information that investors should know. “Overcoming Brexit turmoil and building a better portfolio: a 5-step investment guide” Please view from here.

We also distribute the latest information on Twitter and Facebook.Official Twitter account @motleyfooljp,Official Facebook account follow us.