Living expenses crisis puts U.S. households at financial risk

Help consumers save money

Improving America's Financial Literacy

Improving America’s Financial Literacy

The FinancialVerse Podcast

Americans must pay maximum attention to managing their spending budgets to combat the effects of inflation.

America is experiencing a living expenses crisis with household lifestyles under attack. Households need to pay maximum attention to managing their expenses.

—Harry N. Stout

VERO BEACH, FLORIDA, USA, April 15, 2022 / — America is experiencing a living expenses crisis with lifestyles under attack. During this period, households should pay maximum attention to their spending budget, says FinancialVerse podcast host Harry N. Stout. The cost of living is really hit by inflation, with big increases in the basic costs of food, energy and housing topping the list. We are starting to see households increasing their credit card balances to pre-pandemic levels to make ends meet.

These increases in the cost of living come from several areas:

>The latest government reports show overall cost-of-living inflation at around 8.5%, the highest level in 40 years.
> The USDA just announced that it expects 2022 food costs for home consumption to increase between 4.4% and 5.5%. At the same time, it reported that the same costs rose 7.9% for the fiscal year ending February 2022.
>Heating and cooling costs are increasing at rates greater than 20% in some parts of the country. For individuals who use utilities that generate electricity from natural gas, they may experience increases of 25% or more.
>Transportation costs are increasing rapidly. Gasoline prices for the 12 months ended February rose 38%, with prices per gallon hitting $4 to $6 per gallon depending on where consumers live.
>Housing costs have increased by at least 7% or more in most parts of the country, with rents in some areas having annual increases of 15% or more. Overall, the cost of housing is becoming increasingly unaffordable for households.
>Car insurance costs are rising about 5% nationwide (with larger increases in some geographies) due to higher prices for repairing and replacing damaged vehicles.
>The continued rise in healthcare spending with expected increases of 5% to 7% announced.

After seeing the reality of the price hikes we are all experiencing, households are challenged and stressed to maintain their lifestyle. Their basic financial security may be at risk.

Stout suggests that households take a cold, hard look at their cost of living. The typical American household spends about $63,000 a year on living expenses. These households need to save money to cope with inflation and rising expenses. He believes they can make better spending decisions and save money – they just need to know where to look. However, for most people, making changes to household cash budgets, while learning new ways to save, takes time. To help households find savings faster, Stout has written a book that gives ideas on where to look for cash savings and what action to take.

The FinancialVerse Guide to Savings – 600 Practical Cash Saving Ideas ($16.99 print and $3.99 eBook), shows consumers where to look for savings and rebates – helping to keep more money in their pockets and freeing up more budget dollars to deal with the impact of inflation on the purchase of the goods and services they need.

600 Practical Money Saving Ideas explores:

• What questions to ask about your relationship with money
• Proven ways to help save money on:
 Insurance, income tax
 Clothing, food, transportation, cleaning
 Child care, college funding
 Housing, utilities, moving expenses
 Entertainment, gifts, large purchases
 Health, insurance
 Technology, travel, subscriptions

600 Practical Money Saving Ideas also provides:

 Tips for finding coupons and discounts
 Ideas for managing credit cards, improving credit scores and fighting debt
 Ways to improve financial well-being and knowledge
 Advice on maximizing investments and savings

The FinancialVerse Guide to Savings: 600 Cash Savings Ideas can be ordered from the FinancialVerse website and through Amazon and major national book distributors.

Harry N. Stout is a podcast host, published author, and former senior executive at several of the nation’s largest life insurance and annuity companies. A certified public accountant by training, he has industrial experience in the United States and abroad. He is recognized as a national thought leader in personal finance and has written for numerous financial publications and appeared in national media of all types.

He was a director of the Life Insurance Marketing and Research Association (LIMRA), the National Association for Fixed Annuities (NAFA), the Financial Services Council of Australia and the Insurance Marketplace Standards Association.

Harry N Stout
The FinancialVerse organization
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