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What does the state of finances look like for most Americans today? To find out, the Ramsey Solutions team polled over 1,000 Americans about their own financial health and how they view the financial health of the country. While Americans are struggling with things such as inflation and debt, there are some learnings we can glean from these struggles — and every challenge has a solution.
Here are some of the key takeaways from Ramsey’s latest report.
Americans Believe the President Has a Major Impact on Their Finances
According to the report, most Americans (52%) believe the president has a major impact on their personal finances. This belief is held pretty evenly by both men and women (54% and 50%). However, conservatives are more likely than liberals to believe in the president’s impact on their finances (67% versus 52%).
What Ramsey Says
While Dave Ramsey publicly endorsed now-President-elect Donald Trump, he has noted that the president doesn’t directly impact personal finances as much as many Americans believe. When discussing whether Trump or Vice President Kamala Harris would be better for individuals’ finances, Ramsey said that “neither one of these people are going to be your savior.”
“You’re going to have to look in the mirror and change your life,” he said while appearing on “Cavuto Coast to Coast.” “What happens at your house is a whole lot more important than what happens in the White House.”
Americans Are Worried About the Economy and Inflation
The survey found that 78% of Americans are worried about the strength of the U.S. economy, with the top economic concern being inflation — 64% of Americans are “extremely” or “very concerned” about rising prices.
What Ramsey Says
While inflation may be out of your hands, there are things you can do to save money amid high prices. The Ramsey Solutions team offered the following strategies:
- Prioritize needs over wants at the grocery store.
- Shop at inexpensive grocery stores.
- Use an app like GasBuddy or Waze to find cheap gas near you.
- Adjust your thermostat and be mindful of appliance usage to save on utilities.
- Consider moving to an area with lower living costs.
Americans Are Taking On More Debt
Due to rising prices, a challenging job market and other factors, many Americans are taking on more debt. According to the report, more than one-third of Americans (36%) said their debt load had increased in the past three months. Another one-third (34%) are now carrying more than $10,000 in consumer debt. This held true for different income groups, with a range of 31% to 35% of Americans at different income levels having five-figure debt or greater.
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What Ramsey Says
Ramsey recommends the debt snowball method for getting out of debt — even if you owe $10,000 or more. This involves making a list of all your debts from smallest to largest — regardless of interest rate — and focusing on paying down the smallest debt first.
“The quickest way to get rid of debt is to use the debt snowball method,” he shared on Instagram. “If you begin with the biggest debt, you won’t see traction for a long time. You might think you’re not making fast enough progress and then lose steam and quit before you even get close to finishing.
“It’s important to pay your debts in a way that keeps you motivated until you’ve wiped them out,” he continued. “Getting quick wins in the beginning will light a fire under you to pay off your remaining debts. Knock out that smallest debt first, and you will find the motivation to go the distance.”
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