Shame, not just money, turns a bad month into a bad year, experts say.
PHOENIX – For Michelle Grigsby, things stopped working out more than a decade ago.
>> Live, local, current. Download the 12News app
“We had a bad year… the economy was terrible, my husband was unemployed and we couldn’t find work,” Grigsby said.
Grigsby, a Goodyear mother of two, said she knew something had to change quickly or her family would lose their home.
This story continues below.
A few years after the recession devastated Arizona’s job market, she took an international teaching job – a decision that allowed her family to rebuild their savings over the next decade before returning to Arizona. “I am a proud American and happy to be back in the States,” Grigsby said. Grigsby’s story reflects a much larger trend.
A new survey finds that 61% of Americans live paycheck to paycheck, and nearly half say they have had at least one bad money month in the past year.
Now Grigsby’s 19-year-old daughter Alana is starting her senior year at Arizona State University while struggling with financial problems of her own. “My biggest expense is my car. Gas prices are much higher than before and controlling that with schoolwork is difficult,” said Alana Grigsby.
Christina Kredit of Copper State Credit Union said the setbacks suffered by families like the Grigsbys are becoming the norm — and the shame that follows a bad month is making recovery difficult for many people.
“That means 200 million Americans … have this problem, so it really points to an underlying problem with our economy and the way people make it work,” Kredit said.
Kredit said the instinct after a tough month was to avoid looking at the numbers, but that was the wrong move. “Find out what’s happening and then you can change your trajectory,” she said. For anyone trying to get their finances on the right track, Kredit recommended giving up the all-or-nothing mindset.
Instead of imposing strict, sweeping cuts, she said people should approach their budgets with curiosity rather than judgment and make sure their paycheck covers four priorities first: housing, transportation, utilities and food. “Make sure your salary primarily covers these four key areas,” Kredit said.
Once those priorities are met, Kredit said any remaining money should go toward paying off high-interest debt as quickly as possible.
There is a lot at stake at the moment. According to the survey, only 41% of Americans have $1,000 in savings for emergencies, meaning a single unexpected expense can start the cycle again. “People who look at themselves and feel ashamed tend to continue the bad money month into a bad money year,” Kredit said. She recommended setting aside even a small amount — just $20 a week — for an emergency fund.
For the Grigsby family, teaching had to come the hard way across continents and years. Now back home in Arizona, Michelle and Alana are dealing with the same economic stresses at different stages of their lives, and both said side jobs have helped soften the impact.
“Take advantage of every opportunity – could this work, could this not work – and take that leap of faith. I think that’s the most important thing,” Michelle Grigsby said. “These side hustles have helped a lot,” Alana Grigsby added.
If you have a money-saving topic you’d like 12News to look at? Email money@12News.com.
Table of Contents
Impact on education
Get the latest on education in Arizona from the 12News I-Team. Subscribe to 12News for more.
https://www.12news.com/article/money/money-saving-monday-bouncing-back-after-a-bad-money-month/75-a4f23d79-579a-4c4f-92fa-5cf58006ae3a
