That’s leaving most people with less cash on hand to cover groceries, gas and everyday expenses and weighing on their confidence in the overall economic picture.
The University of Michigan’s closely watched index of consumer sentiment recently slumped to around its lowest level in a decade.
“The labor market is strong and retail growth is ticking upwards, but we’re also dealing with recent market volatility and record high inflation,” said Craig Birk, Personal Capital’s Chief Investment Officer.
“It’s unsettling for many,” he said.
Further, a growing number of Americans are influenced by what they see on social media, Birk said, which may set unrealistic expectations for what they should earn or have.
“The key, regardless of income, is to know where you stand,” he added, including how much you should save for retirement and how to live within your means.
“There are people who make $50,000 and are in great shape and people who make ten times that who won’t be able to do what they want to,” Birk said.
