Despite viewing financial wellness as essential to their livelihood, almost half of U.S. workers don’t feel financially stable.
A recent report from Edward Jones and Morning Consult found 43% of U.S. workers report feeling financially unstable, even though 93% said they believe financial wellness is an important factor in their lives.
The feeling of financial instability may derive from the lack of emergency savings— 29% of Americans report having less than $500 in their emergency savings fund, and 37% said their savings would only last them a month. When asked how they felt about their current emergency savings fund, 28% say they feel stressed, 25% are concerned and 25% feel anxious.
“It’s perhaps unsurprising that so many Americans emphasize the importance of reaching financial wellness, especially given the turbulent times we’ve been facing, but our research reveals a huge opportunity for people to actually achieve it,” said Meagan Dow, senior strategist at Edward Jones, in a press statement. “Regardless of whether you have the ability to take small steps or big steps, most of us can be making progress toward building confidence and financial security, which starts with an emergency fund.”
This feeling of uncertainty, which then extends to the current market environment and inflation, is urging Americans to consider how they can improve their financial wellness. Almost half of respondents (49%) say they will begin to pay off their debt, while others plan to increase their income (42%) and budget their monthly finances (34%).
To prioritize these goals, some are postponing purchasing a home (16%), changing careers (11%), or even delaying retirement (11%).
Others are working with a financial advisor to reach their targets. According to the research, those who work with a financial advisor are more than twice as likely to feel very confident about their financial wellness (40%) than those who do not work with an advisor (18%).
Seventy-nine percent of Americans who use financial advisors also have an emergency fund with at least $1,000, compared to 36% of those who do not work with an advisor.
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