Credit Card Annual Fees, Here Is What To Know
September 23, 2021
August 4, 2022
Wages are rising — and yet not enough to keep up with the soaring cost of living.
Although average hourly earnings are up 5.1% from a year ago, prices have been rising much faster. The Consumer Price Index, which measures the average change in prices for consumer goods and services, jumped a higher-than-expected 9.1% in June, the fastest pace in over four decades.
Overall, credit card balances rose 13% in the second quarter of 2022, notching the largest year-over-year increase in more than 20 years, according to a report from the Federal Reserve Bank of New York.
Even so, balances remain slightly below their pre-pandemic levels, after sharp declines in the first year of the pandemic.
An additional 233 million new credit accounts were opened in the quarter, the most since 2008.
Amid fears of a recession and rising interest rates, more than half, or 56%, of consumers said they are already seeing their standard of living declining, according to a recent report from digital wealth manager Personal Capital.
Even more, roughly 69%, think their income isn’t keeping up with inflation and fewer than half said they feel “financially secure enough” for another recession, according to the survey, which polled over 2,000 adults in April.
Americans now say they need to be making about $107,800 a year to feel “financially healthy,” roughly double the national average but down 13% in the past six months, the report found.
“If everything is costing more, that may reset your expectations on what you need to feel financially healthy,” said Paul Deer, a certified financial planner and vice president of advisory service at Personal Capital.
“People are putting a higher priority on simply having a job and lowering their expectations,” he added.
How to feel ‘financially healthy’
How much money you need to earn to cover expenses and save for the future comes down to understanding your net worth and your goals, Deer said.
Your net worth is essentially the sum of all of your assets, including cash, retirement accounts, college savings, house, cars, investment properties and valuables such as art and jewelry minus any liabilities, or long-term debt, such as a mortgage, student loans, revolving credit card balances and any other personal loans.
“First and foremost, is your net worth growing or shrinking over time?” If your net worth is in the red, you’ll need to work on saving more and spending less.
The course aims to equip the learner with an understanding of human resource management activities as a function.
2 hours per week
Professional certificate course on the concepts of English company law and various types of companies in the UK and EU.
1 hour per week