Inflation, unexpected expenses and career setbacks can leave you feeling off track financially and wondering how to get your finances in order. If you don't have a plan—or if you're not following the one you have—it can be hard to calm your nerves and feel comfortable.
The findings from Thrivent's
Fortunately, it's always possible to make progress. Here are five common challenges you may be facing and guidance for overcoming them.
1. Coping with inflation
More than three-quarters of the people surveyed strongly agreed with the statement that they wish they had more breathing room in their budgets.
Another strategy worth considering is purchasing I bonds, an investment that helps your money keep up with inflation. These securities are issued and backed by the U.S. Treasury. Each year, you can buy
You don't have to buy a large sum of I bonds at once. The
2. Saving more for retirement
If you haven't been saving as much over the last couple of years, you're not alone. Only about one-quarter of adults said they were saving "a good amount" in the survey, and that was less than in 2021 by six percentage points.
Even highly educated and higher-income adults haven't been immune to the challenge of
One strategy for increasing your savings is to automate the deposit process and put the money in an account that isn't easily accessible. For example, if your employer offers matching contributions for your retirement plan and you haven't been giving enough to get the full match, you could start by increasing your contribution to that minimum match amount. The money will come directly out of your paycheck, and while you'll have to adjust to having less take-home pay, the benefit is maximizing and automating your savings. Unlike a regular savings account, money in an employer-sponsored retirement plan cannot be withdrawn easily, so you'll be less tempted to spend it on something that doesn't support your long-term financial security.
Other similar options are setting up a
3. Preparing for unexpected expenses
The survey found that 60% of adults would be concerned if they faced an unexpected $500 expense. This number rises to about 70% for lower-income adults and about 80% for adults who say they're not on track financially.
It's understandable: Sacrificing things you want in the present for things you may need in the future isn't fun. You may not even feel like you have enough income to
One way to feel more in control of your finances and gain the knowledge and skills you need to increase your savings rate is to sign up for
4. Creating a financial plan
Just over 50% of adults say they have a financial plan, according to Thrivent's research, and only about two-thirds of those who do state that they follow it closely. Their top financial priorities are saving for an emergency, increasing their income and
If you aren't sure how to get your personal finances on track, start by identifying your top money priorities. Here are some you might want to consider:
- Buying
life insurance to protect your family. - Buying
disability insurance to protect your income if you're too sick or injured to work. - Giving money regularly to your church, your local animal shelter or another cause you want to support.
- Taking a memorable family vacation without going into debt.
- Stepping back from your career to spend more time with your children or parents.
Without a financial plan, it can be difficult to achieve the kind of financial security that lets you live out your dreams and help the people and causes you care about. Creating a plan starts with identifying your goals, then coming up with manageable steps that will help you work toward achieving them. For example:
- If you're feeling
overwhelmed by debt, gain a sense of control by listing everything you owe. - If you can't give a large amount every month to a cause that matters to you, start small. No matter the amount, you'll be establishing a meaningful habit.
- If you don't know whether you can afford life insurance or if you're even insurable, that's OK. You can fill out a simple online form and
ask a representative to contact you. - If you want to help your children pay for college, start by reading
one article about education savings plans.
5. Getting financial help
Many people need help setting goals and working toward them. A financial advisor is an expert in doing exactly that. Along with creating a plan, a financial advisor can help you celebrate your successes and minimize your setbacks. Most of all, they'll support you and hold you accountable.
The idea of working with a financial advisor can be intimidating if you've never done it before. You might wonder if they would be willing to work with someone like you or if professional advice is too expensive.
Fortunately, there are all different types of financial advisors who work with all different types of people. They'll usually have an initial conversation with you for free. Even if you don't end up working with the person you speak with, what you learn in that one conversation could change the trajectory of your financial strategies.
If you would like to