2013 is only 2 months away and financial planners have begun forecasting mixed economic performances for the New Year. As a financial counselor I prefer to focus on personal finances which will be impacted by the economy and these are my predictions.
Personal finances are currently under pressure and consumers were hoping for relief in 2013. Unfortunately, I strongly believe that relief is still 12 months away and consumers will experience a challenging year with their personal finances. The middle to low income earners will be the hardest as they will experience a decrease in the strength of their pay check whilst the high income earners will experience reductions in their investment returns.
1) Rising Cost of Living
2) Election Fallout
a) United States November 2012
3) Increase in Delinquency levels
a) Personal Loans
c) Credit Cards
d) Insurance Premiums
4) Rising Unemployment
a) Low Small Business performance
b) Restrictions in Government spending resulting in fewer projects
c) Increase in global food costs due to 2012 natural disasters
d) Increase in Insurance costs due to natural disasters for 2012
What you can do to stay in control of your finances?
- Maintain Job Security improve job performance
- Prepare a balanced personal budget
- Live within your means
- Track your expenses and avoid un-planned expenditure
- Develop a savings plan
- Increase education levels
- Practice expense reduction
- Analyse your debt
- Develop a culture of Financial Discipline
Many consumers tend to neglect their finances until it is too late. It’s better to face the music and accept your financial position rather than ignoring the signs that may lead to financial disaster. On a positive note, we have the ability to make the adjustments when necessary.
I encourage you to start the adjustment now to take control of your finances.