The midterm elections take place Tuesday, but many Americans do not have financial peace of mind.
The chances of the Republican Party taking back the House of Representatives and the Senate appear to be strengthening. Recession worries continue to cloud the horizon as the Federal Reserve raises interest rates to combat four-decade high inflation.
Two polls reinforce the glum economic mood. In one, MarketWatch asked Twitter followers which financial issue was on the top of their mind heading into the polls. The clear winner was “recession fear.” Amassing nearly 48% of the 801 votes, it easily beat other choices geared at taxes and rising costs.
Of course, MarketWatch followers and readers are likely very aware of the stock market’s volatile downward trajectory this year, along with the bearish calls from economists and investing experts.
Still, that does not bode well for Democrats in the midterm elections. Republicans are scoring 47.9% support in a recent RealClearPolitics average of generic ballots, the highest level in about four months, with Democrats behind by 3 percentage points at 44.9%.
“ Attempting to spend less, pay off debts and save more is difficult with the cost of living rising, and the holidays approaching. ”
Spending and saving tactics: Attempting to spend less, pay off debts and save more is undoubtedly difficult when everything costs so much — and the holidays are nearing. (The fourth quarter is typically when Americans’ credit card debt cycles typically balloon to their highest point during the year, New York Fed data shows. )
Start by writing out all the income, expenses and debts (plus the interest rate), according to financial counselor Susan Greenhalgh, president of Rhode Island-based Mind Your Money, LLC.
Online savings accounts are now producing an average 2.11% annual percentage yield (APY) up from 1.8% last month, according to DepositAccounts.com.
Social Security payments are going to become more generous next year because of an 8.7% cost-of-living adjustment upwards. That could be an average extra $140 more monthly starting in January, according to estimates.
Income ranges on tax brackets are jumping 7%, and the payout on the widely-used standard deduction is also increasing by 7%, the Internal Revenue Service said this month.
If taxpayers earn approximately the same amount in 2022 and 2023, they could have a slightly lower tax bill in 2023 because more of their income is getting taxed at a lower rate in 2023.
Americans’ personal savings have fallen off a cliff. How to boost your savings in case of a looming recession.