Big Reasons Why Many Families Are Feeling Extreme Financial Stress

[labs0918]

Many families are extremely stress in their finances because of poor budgeting like spending more than how much they earn and it causes a credit. Then most of family members are unemployed and it causes shortage of allowance. My advice to it is set a budget plan.

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[BitcoinCommodor]

Any family will be enduring extreme financial stress if they start spending more than they are earning , and sadly most of the families around the world aren't wealthy enough or haven't highly payed jobs in order to pay for every necessity + taxes and have some money left for either entertainment or urgent situations . Moreover , the banks have encouraged such actions by making people able to spend a certain amount of money that they don't have and cut it from the next wager , which made people even more into spending especially that we are living in times where advertisement entices us to buy what we don't need by tapping on emotions and making us think that we'll have the best hair or the best skin by buying a certain product , when in reality all similar products with smaller prices will do the same .. Such practices will result in salaries disappearing by the 2nd week of each month hence the stress that everyone will be feeling ..

In my opinion, the most important thing which we all need to do is too manage our earnings in the best possible manner. It is because if you will not do some proper planning regarding where to invest your money and where to not, then you will surely run short of money and that you will spend your money at so many useless places. You need to do the right thing and that think well before spending of money.

[green547]

The problem is Capitalism, trickle down economics do not work.  We are more productive then ever but the majority of wealth goes to those at the top.  We need at least a universal basic income which will actually end up costing society less.  There will be much less crime, better mental health for everyone, and happier citizens.

[MaoDio]

wages are stagnating, cost of livingin everey single area is rising, nothing gets cheaper ist just the opposite.

For example, where i used to live people earn 980€ minimum wage, average salary is around 1200-1300€, a proper appartment costs 1000€ easily, a appartment ina  old buildign in a bad part of the city without social security sbustitution costs 700-800€.

There is juts not much left for food, insurances and what else is necessary for a respectable life above the poverty line.

All of this will escalate and probably end up in a war or social distress.

Sad but worse is, it was all planned.

[charlotte04]

When the cost of living rises faster than paychecks do year after year, eventually that becomes a very big problem.  For quite some time I have been writing about the shrinking middle class, and one of the biggest culprits is inflation.  Every month, tens of millions of American families struggle to pay the bills, and most of them don’t even understand the economic forces that are putting so much pressure on them.  The United States never had a persistent, ongoing problem with inflation until the debt-based Federal Reserve system was introduced in 1913.  Since that time, we have had non-stop inflation and the U.S. dollar has lost more than 98 percent of its value.  If our paychecks were increasing faster than inflation this wouldn’t be a problem, but in recent years this has definitely not been the case for most Americans.

And unfortunately inflation is starting to accelerate once again.  In fact, it is being reported that inflation rose at the fastest pace in four years in January…

The prices Americans pay for goods and services surged in January by the largest amount in four years, mostly reflecting a rebound in the cost of gasoline that’s taking a bigger chunk out of household incomes.

The consumer price index, or cost of living, rose by a seasonally adjusted 0.6% in January, the government said Wednesday.

Meanwhile, our incomes have been incredibly stagnant.   In fact, we just learned that median household income did not go up at all during 2016.

This is one of the reasons why we consistently see families fall out of the middle class month after month.  Even if you keep the same job year after year, your standard of living is going to steadily go down unless your pay goes up.

The things that we all spend money on month after month just keep going up in price.  I am talking about food, housing, medical care and other essentials.  If there is one thing that we can always count on, it is the fact that things are going to cost more tomorrow than they do today.

Let’s talk about food for a moment.  Whenever I go to the grocery store, I am almost always shocked.  I still remember a time when I could get everything that I needed for an entire week for about 20 bucks, but these days you can’t even fill up one cart for 100 dollars.

That is because food prices have been rising aggressively for many years.  The following is a list that was posted on The Economic Policy Journal that shows how much some food and grocery items have increased over the past decade…

1. Tobacco and smoking products

-Price increase: 90.4%

2. Margarine

-Price increase: 63.6%

3. Uncooked ground beef

-Price increase: 46.3%

4. Shelf stable fish and seafood
-Price increase: 45.0%

5. Prescription drugs
-Price increase: 43.5%

6. Rice, pasta, cornmeal
-Price increase: 40.3%

7. Bread
-Price increase: 38.9%

8. Snacks
-Price increase: 38.4%

9. Miscellaneous poultry including turkey
-Price increase: 37.0%

10. Apples
-Price increase: 36.6%

11. Frankfurters
-Price increase: 35.8%

12. Canned vegetables
-Price increase: 35.3%

13. Salt and other seasonings and spices
-Price increase: 34.0%

14. Miscellaneous fats and oils including peanut butter
-Price increase: 34.0%

15. Miscellaneous processed fruits and vegetables including dried
-Price increase: 33.7%

16. Bacon and related products
-Price increase: 33.2%

17. Fresh whole chicken
-Price increase: 32.5%

18. Cakes, cupcakes, and cookies
-Price increase: 32.1%

19. Flour and prepared flour mixes
-Price increase: 32.1%

20. Canned fruits
-Price increase: 32.0%

And thanks to out of control government spending and reckless manipulation by the Federal Reserve, we have come to a time when inflation is starting to accelerate once again.

According to John Williams of shadowstats.com, if honest numbers were being used the government would be telling us that inflation is rising at a 6 percent annual rate for the first time since 2011.

At the same time, evidence is mounting that U.S. consumers are simply tapped out.  Previously, I have explained that interest rates are going up, consumer bankruptcies are rising, and lending standards for consumers are really tightening up.

All of those are things we would expect to see if a new recession was starting.

And today we learned that the number of Americans refinancing their homes has fallen to the lowest level that we have seen since 2009…

A slowdown in refinancing pulled down the total mortgage application volume last week as changes to certain government-loan programs made refinances less lucrative. Refinance volume now stands at its lowest level since June 2009.

If you will remember, we also saw a slowdown in mortgage refinancing just before the great financial crisis of 2008.

For mortgage applications overall, they are now down almost 31 percent from where they were a year ago…

Total mortgage application volume fell 3.7 percent on a seasonally adjusted basis last week from the previous week, and are nearly 31 percent lower than the same week a year ago, according to the Mortgage Bankers Association.

A 31 percent decline in a single year is catastrophic.

If this continues, it won’t be too long before everyone is talking about a new housing crash.

And we also learned this week that FHA mortgage delinquencies increased during the fourth quarter “for the first time since 2006”…

Federal Housing Administration mortgage delinquencies jumped in the fourth quarter for the first time since 2006, the Mortgage Bankers Association reported Wednesday. The FHA insures low down-payment loans and is a favorite among first-time homebuyers.

The seasonally adjusted FHA delinquency rate increased to 9.02 percent in the fourth quarter from 8.3 percent in the third quarter, MBA data show.

So many things are happening right now that we have not seen happen in many years, but most people are choosing not to see the red flags that are popping up all around us.

None of our long-term economic problems have been fixed.  And even though Donald Trump won the election, the truth is that our economy is in the worst shape it has been since the last financial crisis.  I continue to encourage all of my readers to get prepared for very hard times, but just like back in 2007 we are experiencing a wave of tremendous optimism right now and most people think that the party can somehow continue indefinitely.

Whether Donald Trump won the election or not, the truth is that a major economic downturn was going to come anyway.  You see, Donald Trump is not some magician that can just wave a wand and somehow make the consequences of decades of very foolish decisions instantly disappear.

We have been on the biggest debt binge in human history, and there is going to be a great price to pay when this immense debt bubble finally bursts.

Unfortunately, most people are not going to acknowledge the truth until it is too late.

http://theeconomiccollapseblog.com/archives/this-is-one-of-the-big-reasons-why-so-many-families-are-feeling-extreme-financial-stress

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I think the main reason Trump won the election was Trump being the only candidate willing to address these issues.

These types of points relating to state driven policy failure and wealth inequality, regularly fall outside the mainstream media talking points and the degree of knowledge one can obtain by exclusively following mainstream sources.

Every other politician I've seen would have swept these issues under a rug and feigned ignorance until the next recession.

Here in our country (Philippines), everyone struggles because of a habit that we need to support our parents, siblings or other person just to repay the debts we have got from them when we were young.

[jameshowlett]

Any family will be enduring extreme financial stress if they start spending more than they are earning , and sadly most of the families around the world aren't wealthy enough or haven't highly payed jobs in order to pay for every necessity + taxes and have some money left for either entertainment or urgent situations . Moreover , the banks have encouraged such actions by making people able to spend a certain amount of money that they don't have and cut it from the next wager , which made people even more into spending especially that we are living in times where advertisement entices us to buy what we don't need by tapping on emotions and making us think that we'll have the best hair or the best skin by buying a certain product , when in reality all similar products with smaller prices will do the same .. Such practices will result in salaries disappearing by the 2nd week of each month hence the stress that everyone will be feeling ..

In my opinion, the most important thing which we all need to do is too manage our earnings in the best possible manner. It is because if you will not do some proper planning regarding where to invest your money and where to not, then you will surely run short of money and that you will spend your money at so many useless places. You need to do the right thing and that think well before spending of money.

It is undeniable that each of us need to have certain plan for our money and consider carefully and wisely before we spend it on something especially something expensive or seemed to be unworthy of buying. We can easily fall for those advertisements and waste money for no reason if we don't think it through. But since prices of things keep growing, it is also essential to have a decent and high-paid job and this is not an easy task for most people. I think bitcoin would be a grand solution since its price has the potential of going up high and somehow solve the unemployment crisis.

[fcf1081]

One major factors that contributes to the families financial stress is poverty...lack financial support, can't hardly study, can't find job due to these condition, lack of family planning, financial mismanagement-all these add stress, difficulties to every member..but if one member can barely know bitcoin and can join bounty and later on earned this is a big help for them

[Godexists]

for me the reason is of lack of education,poverty,unemployed.because of these ,most of the families are in financial stress.because of poverty they lead to a poor salary.and also beneficial factors of this is on how do they budget the money in they everyday life.like there basic need,food,bill and etc in otder for us to live.

[pernah ada]

if they experience it, because they have no work that ultimately has no income in the family finances. which produces stress in extreme finances.

[cdoyle14]

nobody knows the price in next month for the goods, and if people are seeing the grows of price for the food and lives they can be disappointed about future. They have money, but did not know what to do with then to have benefit

[laravuemaster]

Many families are extremely stress in their finances because of poor budgeting like spending more than how much they earn and it causes a credit. Then most of family members are unemployed and it causes shortage of allowance. My advice to it is set a budget plan.

In that case they should find another way to earn income, cryptocurrency is the best asset that you can have today in order to have financial freedom and that is the reason why people can live on a very wealthy life if they invest on bitcoins or just work on bounty campaigns here in this forum.

[kidd07]

One major factors that contributes to the families financial stress is poverty...lack financial support, can't hardly study, can't find job due to these condition, lack of family planning, financial mismanagement-all these add stress, difficulties to every member..but if one member can barely know bitcoin and can join bounty and later on earned this is a big help for them

Their are many reasons why many families are suffering from financial stress. I will base my answer to my experience last year of spending more than what I've earn. This not really supposed to happen. Our salary are stagnant and the cost of living keeps on higher. How to survive with that matter? my suggestion is do not buy those unwanted things focus on what is really needed. Save more than you spend, It just a matter of self discipline.

[South Park]

Actually, the psychological problems (the internal conflicts) are the most obstacles that leads to financial stress, and unfortunately, it is widespread in many people or families. Plus, many do not have the determination to overcome the financial crises.
Furthermore, we live in a negative world, because we always read and hear pessimistic and bad news, idea, predciton, and all of this negatively effects on many people especially in terms of psychology.

As a matter of fact, if you want to achieve your goals, then you have to be  isoled  from this negative world, and try to deed your mind with something useful, and just read and learn, and believe me, Knowledge is potential power. You can overcome any problem, crises, eve the stress. just accept what happen (the truth) and deal with it.

No, the biggest problems are the low salaries and inflation, inflation makes low salaries even worse by allowing the government to steal the purchasing power of everyone, there are many studies that show that even in first world countries most marital problems have to do with money and those problems could be easily solved by 100 to 200 dollars every month.

[cryptocurrencyguru]

increased inflation and lacks of jobs in market and increase in crude oil prices all these factors are the efforting middle-class person for  financial stress

[onemoretime8520]

Lots of politicians before getting their places address this kind of very important topics which affect the majority of the population and are key to a comfortable life, but after they get their places they never look back to the addressed issues and leave them for the next round which will worsen the situtation.

[bluered]

That is in USA. It is worse in my country where employees are underpaid, overworked and inflation on commodities and food are getting higher and higher by day. It is hard to survive even when both parents have jobs.

Yes same here, in our country the prices of products are getting high also the taxes and the salary of the employees are slowly getting high, everything is not balance thats why crisis is happening. And also if the leader of the family dont know how to manage the everyday budget, and even the country leader they must know how to manage the budget of the country and it is also good that he know how the money work.

[rasp]

These types of points relating to state driven policy failure and wealth inequality, regularly fall outside the mainstream media talking points and the degree of knowledge one can obtain by exclusively following mainstream sources.

Every other politician I've seen would have swept these issues under a rug and feigned ignorance until the next recession.

Wealth inequality and feigned ignorance you say..
If only you tried to manage the budget of $200/month per one family you would smother all American politicians with kisses.
Everything is relative. I still believe that even despite the figures you gave American families live better than families in the greatest majority of second-to-third world countries.

[DRVX]

Many families are extremely stress in their finances because of poor budgeting like spending more than how much they earn and it causes a credit. Then most of family members are unemployed and it causes shortage of allowance. My advice to it is set a budget plan.

That is why I am always trying to take credits and to borrow money. The more credits you deal with, the worth the financial situation in your family can be.

[cryptosluck]

Inflation are touching all-time high now market are negative and people are losing jobs and crude oil prices are increasing day by day so we can see other financial crises but we have bitcoin and cryptocurrency which are non inflated

[nightways]

if they experience it, because they have no work that ultimately has no income in the family finances. which produces stress in extreme finances.

There are so many cases where families are disturbed because of financial crises. Like in developing and developed countries, both have a big number of families who are continuously putting efforts to make this problem solved. But the results are not that much satisfactory. Better is to work for own good and try to increase rate of earning amount for better tomorrow.