#020 The Good, The Bad and the Ugly of COVID-19's Impact On Our Money
COVID-19 has impacted almost every single industry and job in the world. Most for the worst. Few for the better. But everyone has had to adapt or die.
Quote – “It’s not what happens to you, but how you react to it that matters.”
THE BAD
How many people were impacted negatively?
42% of Americans said their level of financial security was the same or worse since the pandemic began.
That is with stimulus checks, payments on mortgages and loans being suspended for certain periods of time, bailouts for businesses to keep people hired and more. Despite ALL that, almost half of people in America are the same or worse.
The top areas where Americans have cut back have been on dining out (64%), entertainment (61%), clothes and apparel (55%), and travel (52%). While this has helped many Americans save, the significant cutbacks have destroyed these industries and the jobs associated.
Unemployment spiked to 14% in April 2020, and since then 63% have been living paycheck to paycheck.
1/3 of Americans have opened up a new credit card since the pandemic
Since COVID-19 hit, more than ¼ of Americans have accumulated $10,000 or more in debt.
47% say they ran out of their emergency savings funds.
82% of people said if they were hit with a surprise $500 expense, they could not afford it! That’s up from about 55% pre-COVID.
THE GOOD
63% of people have started to save more and cut back on discretionary spending.
Considering we set records in 2019 for an average car payment of $554/mo for a new vehicle and $391/mo for a used car, this is very good to see. 32% of Americans have said controlling their spending is their top goal for 2021. Let’s hope it sticks.
For those who have 401ks or investment accounts, the stock market main funds returned anywhere from 9.7% on the Dow Jones to 45% on the NASDAQ. It was a great year for tech and other industries.
Also, homeowners should notice that their property values have gone up since there is a record shortage of homes for sale and a huge demand since interest rates are so low.
THE UGLY
Things will continue to get worse and more disparate until the coronavirus cases slow.
Government shutdowns will continue to be sporadic and do significant damage to small businesses if shutdowns continue.
Certain industries such as movie theaters and cruise lines may take years to recover if they do not pivot and adapt quickly to new health s
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If working a 9-5 for 60 years so you can retire with a little money and die a few years later is what you want to do, then this is not the podcast for you.
Stephen is an executive coach that works with executives and entrepreneurs to build the life that they want, personally and professionally.
This podcast is about contrarian investment strategies around time, energy and money to build the 4 types of wealth and utilize lifestyle design to create the life we want. The interviews are with hi-earning individuals on how they make money so you can copy us and grow wealth too!
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