Latest news with #financialstress
Yahoo
3 days ago
- Business
- Yahoo
5 Reasons You Should Pay Off All Debts Before Retirement If You Can
Debt is becoming an increasingly common burden for older Americans. According to a Lending Tree report, more than 97% of adults aged 66 to 71 carry non-mortgage debt. In addition, older residents in the nation's largest cities have a median debt balance of $11,349. Read More: Find Out: This financial strain is prompting many to delay retirement, draw down savings prematurely, and experience heightened stress. Here are five reasons you should pay off all debts before retirement if you can. Carrying debt can drastically postpone retirement and force many Americans to work far longer than they planned. A National Debt Relief survey found that 67% of non-retired respondents said they 'definitely' don't have enough saved to live comfortably in retirement and needed an average of 12 more years to reach their savings goals. 'Our findings reveal a troubling reality: Our nation's growing consumer debt epidemic has left millions of older Americans feeling stressed about their debt, which has considerable impacts on their ability to build a comfortable financial future and their ability to retire,' said Natalia Brown, the organization's chief compliance and consumer affairs officer. Be Aware: For many older adults, carrying debt makes it difficult to save enough for a stable retirement. Nearly half (49%) of respondents in the National Debt Relief survey reported having less than $20,000 saved, and 22% had saved nothing at all. 'Carrying debt into retirement can quietly eat away at everything you've built,' said Bert Hofhuis, entrepreneur and founder of Banking Times. 'You've likely spent decades saving, budgeting and investing, only to see loan repayments or credit cards continue pulling money from your pocket when you're no longer earning a steady income. 'When you're debt-free, your pension or drawdown can go directly toward your needs, experiences or even helping family, rather than servicing interest. I've seen people sleep better just knowing no one's waiting at the end of the month to be paid back.' Debt doesn't pause when the markets dip. Retirees who carry debt may need to withdraw more aggressively from their pension or retirement accounts to meet monthly obligations. 'That puts pressure on your portfolio and can shorten how long it lasts,' Hofhuis said. 'In some cases, people trigger large taxable withdrawals to make lump-sum repayments, and that throws off their income plan. 'Debt repayments don't adjust based on how the markets perform, so if there's a dip in your investments, you're still expected to meet the same monthly commitments. It can trap you in a corner, where you're forced to make poor financial decisions just to keep up.' Retirement often brings a psychological shift in spending that can be worsened by debt. Mark Zagurski, director, strategy and communications at Mutual of Omaha Advisors, said that while some studies suggest retirees spend more at the beginning and end of retirement, debt affects their mindset. 'Many retirees become more price-conscious when they stop earning an income and start relying on savings,' Zagurski said. 'This can lead to cautious spending, and in some cases, underspending, even when it's not necessary. 'Carrying debt into retirement can make your finances feel tight at a time when you want to relax and enjoy life. High-interest debt can grow quickly, making it tough to keep up with payments. That could mean cutting back on things you enjoy or even selling assets to stay afloat.' Carrying debt into retirement reduces one's ability to adapt when life throws a curveball. 'Retirement isn't as fixed as people imagine,' Hofhuis said. 'Expenses pop up, whether it's healthcare, home repairs or helping grandchildren. If you're locked into repayments, there's less room to adapt.' Debt also adds emotional strain that often goes unspoken. 'I've worked with retirees who felt ashamed about their balances and kept it hidden from family,' Hofhuis said. 'It affected their well-being, not just their finances. If something unexpected happens, like a medical cost or a family emergency, and your money's tied up in loan repayments, you don't have many good options.' More From GOBankingRates These 10 Used Cars Will Last Longer Than an Average New Vehicle 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on 5 Reasons You Should Pay Off All Debts Before Retirement If You Can
News.com.au
3 days ago
- Business
- News.com.au
‘Something has to give': Warning Australia can't ignore any longer
There is a deeply concerning phenomenon on the rise across the country and, as Australians, unless we make a real change, it is only going to get worse. New research has found money and financial concerns have the most significant impact on the mental wellbeing of all Australians, affecting 48 per cent of the population, followed by stress and anxiety. New research by News Corp's Growth Distillery with Medibank has painted a worrying picture of how Aussies are coping with everyday stressors like work and their finances. Researchers surveyed more than 2500 people aged 18 and over, finding the most commonly experienced, frequent and impactful stressor is feeling financially behind or guilty about spending money, with over 60 per cent of respondents indicating it happens most frequently and has the most significant impact on their mental wellbeing. When it comes to the workplace, deadlines and intense workloads were identified by one in give as major sources of stress. The pressure felt when it comes to work stressors also increases with income level, with 28 per cent of higher income respondents saying they lack downtime and feel overburdened, compared to 12 per cent of those on lower incomes. Australia is in the grips of a mental health crisis, and people are struggling to know who to turn to, especially our younger generations. Can We Talk? is a News Corp awareness campaign, in partnership with Medibank, equipping Aussies with the skills needs to have the most important conversation of their life. 'Something has to give' Mindset Consulting Psychology clinical psychologist Dr Aileen Alegado told unaddressed workplace and financial stress can have serious long-term consequences, both on individuals and the wider Australian community. 'When we don't address workplace and financial stress, we're essentially asking our bodies and minds to run a marathon while carrying heavy backpacks - eventually, something has to give,' she said. 'From a neurobiological perspective, chronic stress keeps our amygdala - our brain's alarm system - constantly activated, while simultaneously suppressing our prefrontal cortex, which handles decision-making and emotional regulation.' This then leads to what Dr Alegado described as a 'cascade effect' as chronic stress hormones like cortisol go further than just impacting mood, they can compromise immune function, disrupt sleep architecture, and shrink our brain's memory centre, known as the hippocampus. This can manifest as an array of issues, such as increased rates of anxiety, depression, cardiovascular disease and cognitive difficulties - all of which can persist even after the initial stressor is removed. But there is a big reason this is so concerning for Australia has a whole. Stress is contagious, according to Dr Alegado. 'When individuals are chronically stressed, it ripples through families, communities, and workplaces,' she said. 'We're seeing increased domestic violence rates, children developing anxiety disorders at younger ages, and what researchers call 'secondary trauma' in healthcare and social service workers who are supporting increasingly distressed populations.' Looking at it from an economic through an economic lens, these impacts can lead to a vicious cycle. A stressed-out worker is more likely to be absent from their job and be less productive. Dr Alegado noted Australian businesses are reporting unprecedented turnover rates, warning 'we're losing institutional knowledge faster than we can rebuild it.' 'It's like trying to fill a bucket with holes in it - the economic cost of not addressing mental health is far greater than the investment required to support it,' she said. 'Taboo' topic widening generational rifts When we look further into the impact of financial and work stressors on Australians, it is clear there is also a deeper generational divide that needs to be considered. For Baby Boomers and pre-Boomers, the biggest reported stressors relate to health declines and loss, along with worrying about their loved ones' wellbeing. Gen X are burdened by peak financial responsibilities, such as mortgages and retirement planning, while also managing health issues that can come with ageing. Millennials are grappling with the financial strain of housing and childcare costs, while also juggling their family and work lives. One in four in this generation said they feel overburdened daily due to career demands, family responsibilities and social expectations, citing a distinct lack of downtime. Gen Z face intense stress of academic and early career pressures, all of which are heighten by social media and societal expectation. The research found that close to 40 per cent of Gen Zers surveyed reported feeling behind financially or guilty about spending money. When it comes to Gen Zers, Enriching Lives Psychology principal psychologist and owner Carly Dober said they are in the difficult position of being 'far worse off' than previous generations when it comes to many financial security measures. 'We have societal expectations and markers of adulthood now that are so much more difficult to achieve - or impossible for some Gen Zers,' she told 'This combined with shame and resentment about this, plus a certain percentage of the population telling them incorrectly that they 'just need to work harder' or other falsehoods show a lack of understanding of contemporary economic basics.' This can also lead to intergenerational conflict and resentment. The report also found there is a perceived hierarchy of struggles when it comes to discussing mental wellbeing topics, with tangible or 'universal' issues such as physical health problems or work viewed as more socially acceptable to discuss. Australians find silent struggles, such as feelings of loneliness or lack of purpose, much harder to openly address, with people often looking to internalise and manage these stressors alone. This conversation gap widens when it comes to discussing sensitive topics across generations. For example, even though the majority of respondents said they generally feel comfortable discussing work-related stress, the level of discomfort increases, going from 27 per cent to 39 per cent when a person is talking to someone from a different generation, Dr Alegado said this communication gap exists because each generation has developed different 'stress languages' based off their formative workplace experiences. Baby Boomers and Gen X were taught to compartmentalise work stress as their 'neural patterns were shaped in environments where bringing personal struggles to work was taboo'. They developed strong mindsets of the back of this, which is why when they hear younger generations discussing things like anxiety around work-life balance it can 'trigger' a strong response, as these coping mechanisms are so different from their own. 'Conversely, Gen Z and younger Millennials have grown up with psychological literacy - they have vocabulary for mental health concepts that older generations may never have learned,' Dr Alegado said. 'When they say 'I'm having anxiety about this project', they're often seeking understanding and support. But older colleagues might interpret this as inability to handle responsibility or professional weakness.' Biggest challenges we need to address - now There isn't just one thing that needs to be done or achieved to change Australia's attitude towards mental health, particularly around workplace and financial stress. Being able to change the systems that allow these stressors to grow and fester is one of the key challenges Ms Dober says she faces. In order to try mitigate this, she and her colleagues our outspoken advocates for policies and initiatives that can be adopted at a business and a government level to help improve the lives of workers. This includes things like maintaining flexible work, increasing wages and having 'mentally healthy' and competent managers. 'On an individual level, it's about working with the person to try to support their stress levels in practical ways such as focusing on movement, sleep, good enough nutrition, connecting to friends and family, communication and sustainable boundaries in the workplace,' Ms Dober said. Overall, Dr Alegado believes we need to start treating workplace and financial stress not as just individual problem, but something that is intertwined. 'We need to recognise that psychological wellbeing is infrastructure, just like roads or telecommunications,' she said. 'When we invest in mental health support systems, we're not just helping individuals - we're building the foundation for a more resilient and productive society.'
Globe and Mail
3 days ago
- Business
- Globe and Mail
Visitlex Highlights the Power of Daily Expense Tracking in Avoiding Financial Crises
Imagine needing to fix your car or pay for a medical emergency and realizing you don't have the money. You're not alone. A U.S. News survey found that 42% of Americans don't have an emergency fund, and nearly 40% would struggle with a $1,000 unexpected expense. Even among high-income earners, financial stress is growing. Some Americans consider that just $250 could make the difference in paying groceries or utility bills. Many problems with money happen because people don't track their spending. Without knowing where your money is going, it's easy to overspend and leave yourself vulnerable to financial emergencies. Tracking your daily expenses helps you take control, reduce debt, and build financial security. Let's explore why it matters and how to do it effectively. Why is Tracking Your Expenses Throughout the Month Important? Keeping track of every monthly expense gives you a clear picture of where your money goes. You see your cash flow in real-time when you record each payment—your morning coffee, a streaming service fee you overlooked, or a $255 online cash advance you used for an unexpected medical bill. This detail shows which costs are necessary and which ones you can trim before they create overdraft charges or high credit card balances. Regular checks also highlight patterns soon enough to make changes. If you notice that your grocery spending is already three-quarters of the monthly limit by mid-month, you still have time to adjust your meal plan instead of overshooting the budget. Reviewing expenses against your planned amounts helps you set practical limits for areas like entertainment or transport. Reliable day-by-day data supports bigger goals, such as building savings, reducing debt, or increasing retirement contributions. You can only redirect money when you know exactly how you spend it. Tracking expenses each month is not busywork; it is a straightforward way to keep daily decisions in line with your long-term financial plans. What Will Tracking Expenses Help You Do? Even if you don't see the benefits in the short term, they show over time, and you'll find out how to: Identify Spending Patterns Many people underestimate how much they spend on small purchases. A few dollars here and there can quickly add up. By tracking your expenses, you can recognize patterns, such as spending on drinks at a local coffee shop, subscriptions, or impulse buys. Set Realistic Budgets Budgeting without knowing how much you spend is like dieting without checking what you eat. Tracking your money allows you to set a budget that reflects your real expenses rather than just rough estimates. Avoid Debt Overspending leads to credit card debt, personal loans, or payday loans. When you track expenses, you can identify problem areas and reduce your expenses before you get into financial trouble. Save More If you're wondering why you can't save money, tracking your expenses will reveal the answer. Once you see where your money goes, shifting some of that spending toward savings or investments is easier. Common Financial Pitfalls That Lead to Emergencies Many financial emergencies happen because of poor money management. Here are some common mistakes that cause stress: Impulse buying. Making unplanned purchases leads to unnecessary expenses. Living beyond your means. If your lifestyle is too expensive for your income, you'll eventually face problems. Ignoring small expenses. A $5 croissant daily adds up to over $1,800 a year. Not having an emergency fund. Without savings, even small setbacks can turn into financial crises. How to Track Your Spending Effectively Here are several tips on how you can monitor your budget and save money in the long term: Use Special Apps Many budgeting apps make expense tracking easy. Some of the best include: Mint – Connects to your bank accounts and categorizes spending automatically. YNAB – Helps you plan every dollar to avoid overspending. Personal Capital – Tracks both spending and investments. Keep a Spending Journal If you prefer a manual approach, write down everything you spend. This will make you more aware of your purchases and help you control unnecessary spending. Review Bank Statements Check your bank statements regularly to see patterns in your spending. Look for subscription services you forgot about, random charges, or trends that need adjusting. Set Alerts Banks and credit cards allow you to set up alerts for purchases or low balances. This can help prevent overdrafts and fees. Budgeting Methods to Stay on Track Choose the option that better fits your financial needs: 50/30/20 Rule This simple method divides your income into three categories: 50% for needs. Rent, groceries, utilities, insurance. 30% for wants. Dining out, entertainment, hobbies. 20% for savings and debt. Emergency fund, retirement, and paying off loans. Zero-Based Budgeting With this method, every dollar is assigned a purpose. Your income minus expenses should equal zero, ensuring that all money is spent wisely or saved. Envelope System Use cash-filled envelopes for different expense categories. When an envelope is empty, you can't spend more in that category. This is great for people who tend to overspend. Cutting Unnecessary Expenses Without Sacrificing Comfort Making small changes can free up extra cash without making life difficult. Cooking at home instead of dining out can lead to significant savings. Canceling unused subscriptions is another effective way to cut costs, as many people continue paying for services they rarely use. Coupons and cashback apps like Rakuten and Honey can help save money on everyday purchases. Shopping smarter by planning grocery trips and avoiding impulse buys can prevent unnecessary spending. Why Emergency Funds are Important for Your Financial Stability? An emergency fund is essential for preventing financial crises by covering unexpected expenses such as medical bills or car repairs. Having one ensures you don't rely on credit cards or loans in emergencies, reducing financial stress by providing a safety net. It also helps you stay on track with your budget. You should save enough to cover three to six months' living expenses. Start by setting aside small amounts and gradually build your fund over time. Build Long-Term Financial Security Through Smart Money Management If you want to avoid stress, make money management a habit. Here's how: Keep learning. Read books, take online courses, or listen to finance podcasts. Set financial goals. Short-term (pay off debt) and long-term (buy a house, retire comfortably). Review your budget regularly. Adjust it as needed based on changes in income or expenses. Automate savings. Set up automatic transfers to your emergency fund or retirement account. Bottom Line Keeping track of your daily expenses might seem small, but it can save you from big financial headaches. When you know where your money goes, you can spot problems early, cut unnecessary costs, and build a safety net for emergencies. It's not about giving up everything fun. It's about being smart with your cash. A simple habit like tracking your spending can help you stay in control, avoid debt, and reduce stress. So, grab a notebook, use an app, or check your bank statements regularly. A little effort today can keep your finances strong and secure for the future. Media Contact Company Name: Visitlex Contact Person: James Smith Email: Send Email City: New York Country: United States Website:
The Guardian
5 days ago
- Business
- The Guardian
Welsh farmer pleads guilty to stealing 73 sheep from neighbour
A Welsh farmer has been handed a 12-month suspended sentence after pleading guilty to stealing more than 70 sheep from a neighbour, citing financial stress. At least 73 ewes in lamb were rustled in March by Hywel Williams, of Llangadog, Carmarthenshire, from land belonging to Rhodri Llyr Evans near Llandysul. After a public appeal, Dyfed-Powys police recovered most of the animals, from land owned by Williams as well as from an auction mart and a local abattoir, where the sheep were found without their identifying ear tags. Several more were given to another farmer to pay off a debt. Williams was charged with theft on 10 May. In a statement at the time, Insp Matthew Howells said: 'I would like to thank everyone who shared our appeal, and the appeal from the owner, which was shared over 700 times. The support from farming communities near and afar has been vitally important in securing a positive outcome. 'I'd also like to thank those who came forward with information which enabled my officers to respond quickly, ensuring the safe return of these animals to their rightful owner.' As well as the suspended sentence, the 40-year-old was ordered to undertake 250 hours of unpaid work, and to pay more than £5,000 in compensation to Evans during a hearing at Aberystwyth magistrates court on Wednesday. Williams, who manages his 113-hectare (280-acre) farm together with an elderly uncle, told the court he had acted because of financial pressure but understood his actions were 'unacceptable', BBC Wales reported. Williams added that he 'deeply' regretted stealing the sheep and 'feels ashamed'. Evans told the court the incident had put 'unbearable stress' on his business and personal life. Livestock theft across the UK has soared in recent years, costing an estimated £2.7m in 2023, and posing risks to the animals' wellbeing and public health, as many animals end up sold on the hidden market. In recent years, police forces have begun using forensics to track stolen sheep. In 2024 the National Farmers' Union's Mutual insurance society funded the creation of a livestock theft officer role at the specialist National Rural Crime Unit.
Daily Telegraph
15-05-2025
- Business
- Daily Telegraph
Top reasons stopping Aussies from financial success
The cost of living crisis has pushed many into high levels of financial stress, yet comparison site Finder discovered many are sabotaging themselves even further. A survey of 1,011 respondents from Finder revealed that most Aussies are setting themselves up for financial failure and have exposed the biggest obstacles that stood in the way. The most common barrier was wasteful spending with the average Aussie wasting $154 per month. Over a third of respondents said the biggest waste was spending too much money on shopping, according to Finder. MORE: Insane demands of mega wealthy exposed by staff Other money mistakes included paying bills late, which one quarter of respondents were guilty of, one in five fell into credit card debt and 20 per cent said they spent too much money at bars, pubs and clubs. Sarah Megginson, personal finance expert at Finder, said majority of Aussies are unknowingly standing in their own way. MORE: Simple way to unlock $20k in extra home value New neighbourhood coming to Sydney 'Most people don't have a money problem – they have a mindset problem. Breaking these patterns could be the difference between staying stuck and building real financial freedom. 'The idea that you're 'too old' or 'too busy' to build wealth is a myth – and one that's costing Australians dearly.' Another major roadblock was that one in five felt their lack of financial knowledge was preventing them from financial success. 'These blockers are silent wealth killers – they creep into our everyday choices and steal opportunities,' Ms Megginson added. MORE: Alarming way Gen Z are getting homes What homes will be worth in each suburb by 2030 'But the good news is once you are aware of them, you can change them.' She urged Aussies to scrutinise all their living costs to free up more discretionary income. 'It's never too late to take control – increasing personal wealth does require a plan and discipline to reach your goals,' she said. Young Australians wasted the most money, according to a Finder survey, with gen Z admitting to wasting a whopping $237 a month, compared to just $65 by baby boomers. Finder money expert Rebecca Pike said whether you're wasting $5 or $500, it all adds up. 'It's not about living like a monk – no one is saying not to have fun and enjoy yourself from time to time,' she said. 'The more you can segment or budget what you will spend for fun, the better. 'Once you think about spending as a long-term investment rather than short-term indulgence, the more you will actually enjoy when you do splurge.' Ms Pike said even small changes can have a big impact. 'When you add it all up, that's money you could be saving for a home deposit, a holiday, or just a rainy day. 'Redirecting just a small portion of that could set you up for greater financial security, whether it's building savings or paying off debt.' Her tips included manually tracking your spending, through apps like Gather or WeMoney and putting savings into a high-interest savings account. 'It's a low-risk way to let your money grow – helping you build a financial cushion.' Other tips included putting 24-hours between unplanned purchases and unsubscribing from tempting emails and alerts. MORE: Top NSW regions for lifestyle and investors Oroton heirs' stunning $30m payday
