A new survey from Quicken Inc., the maker of personal finance software, shares the findings of a survey exploring people’s perceptions of their financial health amid the current economic climate and the impact on their spending and saving.
“With more than half reporting that their financial situation has deteriorated in the last 12 months, we found that many are prioritizing saving for their emergency fund, while considering cutting expenses like streaming services, retail and restaurants,” Eric said. Dunn, CEO of Quicken.
According to the survey:
· With inflation, layoffs, and a recession looming, 51% of respondents feel anxious thinking about the current economic situation, 48% are frustrated, and 31% are scared.
· Two-thirds of people had to take restrictive financial measures in the last 12 months, such as delaying a large purchase (29%); postpone travel or vacation plans (27%); sell possessions (18%); diving into a 401K (16%); liquidate investments (15%); stop using a credit card (15%); or take an extra job (11%).
· More than half of consumers (53%) ranked inflation as their top concern among inflation, layoffs, interest rates and stock market performance.
· 66% of people say the current economic situation has made them rethink how much they should have in an emergency fund and are trying to increase their savings as a result.
Emergency funds are especially on the minds of those who have been laid off in the past 12 months, with 90% saying the current economy has made them rethink how much they should have in an emergency fund, compared to 72% of those who have have not been laid off.
· When it comes to housing, which is traditionally one of people’s biggest expenses, one in four (28%) say their current financial situation has negatively changed their situation. This reality is accentuated for those who have been laid off in the last year (55%). 37% of those laid off in the last twelve months have had to move due to their current financial situation, either to a new house or apartment, or to a new city or state, compared to only 9% of those who were not. fired.
· The survey indicates that if people are laid off, the top four things they would do first would be to quit streaming services (49%); clothing and accessories (42%); going out to dinner (40%); and travel (40%).
· For those with children, more than half (56%) would give up or consider giving up child care services in the event of layoffs. Pet owners are more reluctant, with only 38% reporting that they would be willing to reduce pet-related expenses.
Dunn added: “As consumers reduce their spending in areas like entertainment, dining and travel, we may see corporate cost cutting spill over into those industries, extending the trail of 2023 layoffs and the resulting economic challenges.” .
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