NASHVILLE, Tennessee — Rising inflation is impacting nearly every American in the early start of 2022. But according to Ramsey Solutions’ Q1 State of Personal Finance study, 85% of those who use a monthly budget believe it helped control their impulse spending. The study reveals 8 in 10 Americans are struggling with their day-to-day finances due to rising costs.
There is no doubt Americans are stressed about costs going up. Most people, 60%, reveal the economic situation makes them anxious about how they will pay for items they need. However, Americans are adjusting to overcome spending more on groceries. Four in 5 are changing how they shop to save more money.
“Now more than ever is the time to start budgeting,” says George Kamel, Ramsey Personality and personal finance expert. “I recommend a zero-based budget. That’s when your income minus your expenses equals zero. By giving every dollar a job, you’ll gain control and confidence with your money.”
The study also finds debt is amplifying the effects of inflation. Those with consumer debt (40%) were nearly twice as likely to say inflation had a significant impact on their daily finances compared to those who are debt-free (23%). Regarding student debt, most borrowers (77%) are hopeful at least a portion of their loans will be forgiven. The government paused federal student loan payments at the start of the COVID-19 pandemic. The moratorium has been extended through August 2022.
Other key findings:
- Seventy-nine percent of buy now, pay later (BNPL) users prefer the service over using a credit card.
- Among those who use BNPL, 60% have trouble managing their payments.
- Americans are making small changes to their summer transportation plans: 48% of people are making fewer trips to adjust for inflated gas prices, followed by 19% who cancelled a trip to save gas.
- The majority (60%) say they feel guilty about making an impulse purchase. 53% regret the purchase altogether.
- One in 4 investors say they purchased cryptocurrency—up two percentage points from the previous quarter. Millennials lead the pack in crypto interest at 40%
- Half are considering changing jobs, while 1 in 4 changed jobs in the past year.