Millions are quitting their jobs or are willing to take a pay cut to work from home.
Many Americans think the stock market will crash before 2027, and they plan on taking advantage of it by investing or buying a home.
But they aren’t actually saving money to do that. Recent studies show that because of the pandemic, people would rather take a pay cut or get a new job than work for a company that doesn’t care for their financial, physical, and mental health.
Here’s the problem: If the market crashes, they won’t have the extra income to buy a home or invest.
Eric Dunn, CEO of the software company Quicken, emphasized how people need to have a plan in order to make smart financial decisions.
“It’s important to understand exactly how economic changes, such as inflation and an unsteady stock market, impact our daily lives, and to have a handle on your personal finances so that you are prepared for the uncertainties ahead,” Dunn said.
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Some experts say a crash is unlikely, others say it’s inevitable – who really knows? Both the stock and housing markets are unpredictable and there’s really no answer to whether or not they’ll crash in the coming months or years.
In November, MarketWatch financial investment analyst Mark Hulbert opined, “If inflation proves to be more than transitory and the stock market declines significantly, you might want to treat the selloff as a buying opportunity.”
But even if stock prices continue to fall and the housing market crashes, there’s no guarantee that people will have the money on hand to invest or make a down payment on a home.
Quicken found that a quarter of Americans are waiting for a market crash to buy a home – the same is true for 40 percent of Millennials and Gen Z, which is no surprise. The majority haven’t bought a home yet simply because they can’t afford to.
While most Millennials hope to buy a home, about half have no savings set aside for a down payment.
What’s standing in their way? For many, it’s debt. Workers who are debt-free have more excess income and are able to save more for the future.
If you want to buy a home, regardless of whether or not the market plummets, the top of your to-do list should be paying off debts and building savings.
“During stressful and chaotic inflationary times, the only thing that matters is the money you spend and save. Don’t get distracted by what your friends are buying, or by what economists are saying,” said Howard Dvorkin, CPA and chairman of Debt.com. “The simple truth of every economy is this: What goes up must come down, and what hits rock bottom always rises again.”
If Americans hope to thrive during an economic crash, they need to be prepared.
Published by Debt.com, LLC