April 17th, 2024

People going broke

person holding brown leather bifold wallet

I saw a video today on YouTube about the very topic of people going broke because of the times we are currently living in. The video talked about various different factors, such as median household debt, the rate of salary growth, housing prices, and interest rates, spiced with a couple of examples from real life. All of his statements rang true to me.

But besides the biggest universal factors such as growing interest rates, high inflation, and purchasing power ergo taking a downhill slide, I have made some real life observations myself, too:

  • Never before on social media have I seen so many people announcing that they are looking for a job
  • Besides looking for a job, especially last year there was a huge wave of people publicly posting that they were either laid off or completely terminated from their current position
  • The number of new job openings has seemingly fallen down
  • The housing market is almost completely standing still
  • Even just by taking a look at how much people are using various services or making purchases at the moment, it seems obvious that almost everyone is tightening their belt somehow

These are, of course, subjective observations and I cannot base this on any credible source or a study. However, the more I see such things happening around me, the more convinced I become that these are not just hard times we are living in, but that things are actually even getting harder right now. They also probably will keep doing that for quite some time, too.

Anyone else noticing the same thing I am? I cannot be the only one, can I? Well, at least there was this one guy on YouTube, if no one else.

These are financial problems and they can be solved by being financially literate and making smart decisions. If you had not done so already, for the sake of yourself, make sure to cut down on spending money on useless shit you don't really need, and instead save and invest that piece. You are most likely going to be needing it in the future – whether it be a very distant moment from now or not.