April, 2020 — our COVID wallets
Consumer spending plunged 13.6%, the biggest monthly decline on record.
Not surprising given nationwide lock downs. Americans mainly spent on essentials given the economic uncertainty.
So, the savings were a result of our circumstances. Possibilities are available to come out better than you went in.
Personal income jumped 10.5%, due to $1,200 stimulus check and $600/week extra in unemployment benefits.
A new study shows that 68% of unemployed workers who can receive benefits are eligible for payments larger than their original salaries.
Personal and business benefits have/will run out. We need to pay our workers a living wage and support local businesses when we can.
Wages and salaries feel 8%, but that was more than offset by unemployment and stimulus checks.
People made more money this April than last April, on average.
We can eliminate a portion of your “income” (stimulus / additional unemployment) due to the CARES Act while running the Means Test. These numbers help determine if you qualify for Chapter 7 or 13.
The personal savings rate soared to 33% in April.
That means that Americans saved 33% of their disposable income. That is an all-time high! And, a dramatic increase from 12.7% in March and quadruple Febrary’s rate of 8.2%.
Saving is possible. No matter your income range. It is easier if you aren’t stressed about making ends meet, we get that and can help make that a reality.
Sadly though, Americans are historically terrible savers. Many live on the financial edge.
In January, 2019 there were 78% of US workers living paycheck to paycheck. Approximately 40% of US households would not have been able to come up with $400 for an emergency expense.
Do you know when to call us?
If the next bill could put you over the top…if you are considering another loan… or perhaps thinking about taking the equity from your home & retirement…
Stop.