2020 was a financially destructive year for many Americans, and it is going to get worse in 2021. I have said this over and over, and as I have explained, it has nothing to do with worth ethic, simple economic cycles, rich elites, foreign investors, or poor people, but all to do with debt. The US can’t pay her debts, the currency of the US supports the world financial system, and so it is either declare bankruptcy or print money to pay debts, and the latter is always chosen for political reasons.
Having noted this, a recent study found that 55% of Americans say that 2020 was a financial disaster for them.
While there is no question 2020 has been an unparalleled health challenge, many are not losing sight of how devastating the year was for their wallets as well. A new survey finds over half of Americans (55%) consider 2020 a personal financial disaster.
The OnePoll survey asked 2,000 Americans what their financial status and future goals are for 2021. It’s a poignant question as 59 percent say 2020 has been filled with financial setbacks for them. Seven in ten say their financial priorities have changed from the start of 2020 to now. For 63 percent, this year has permanently changed their financial priorities.
More than six in 10 Americans (65%) are depending on 2021 to recover financially from the setbacks they’ve experienced during the pandemic. For nearly four in 10 (37%), that includes making serious cutbacks.
Three in four respondents (74%) have had to shift their financial priorities this year because of emergency or medical expenses. Half say putting more money aside has gained new importance due to their experiences in 2020. Almost as many (48%) admit that saving for an emergency fund was a new priority this year as well.
Commissioned by World Finance, the survey finds, on average, Americans need a minimum of $10,726 in savings in order to feel financially comfortable.
A long time until financial recovery
Nearly two in three people (63%) believe it will take longer than a year to reach just one of their financial goals. On average, people think it will nearly be 2024 before all their goals are met. Among employed respondents (59% in total), seven in 10 say they need a raise at their job in order to make ends meet. Sixty-two percent plan on taking on a second job in 2021 to meet their financial goals next year.
For 60 percent of America, rebuilding their savings tops the list of financial resolutions to accomplish in 2021. That’s closely followed by becoming debt-free (56%), improving their credit score (53%), and starting that emergency fund (51%). (source)
There is nothing good that one can say about this. All that we can say is that reality is showing its ugly face, and that nothing can stop it. The only that you can do is to prepare how you respond to it.
If people thought 2020 was bad, since the same fundamentals of 2020 are still present and not going away (like the debt, because they are related), expect more of the same in 2021, but worse by the fact that the economic damage is going to continue simply from where it was before.