New York, NY July 30, 2021 American businesses are starting to put their toe in the water as COVID restrictions begin to ease up. With much of the economy coming out of recovery, experts observe that Q2 is the first quarter of relative normalcy since the coronavirus pandemic brought the economy to a screeching halt. After more than a year of unemployment for many, this light at the end of the tunnel is encouraging.
While it may be tempting for households to take a sigh of relief and ease up on financial concerns as the recovery progresses, economic indicators point to a more cautious approach to managing personal finances. The rising costs of fuel, groceries, housing, healthcare and other day-to-day necessities have left many workers feeling particularly vulnerable – particularly those on a fixed income.
At a recent “Fed Listens” event participants were asked “How important are the Fed’s two statutory goals – maximum employment and price stability?” Price stability was ranked “very important” by 79% of respondents while maximum employment was ranked “very important” by 72% of participants. For those on fixed incomes especially older adults, the biggest fear was running out of money as fixed income buying power shrinks against the cost of daily living increases over time.
TKSmartworth, a financial website established by financial expert Tom Kutzen, points out that when managing personal finances, it’s important not to lose sight of the basics. Without a sound foundation and an organized approach, it can be easy to get distracted by so-called “get-rich” schemes or let spending get out of control.
Everyone – no matter how experienced or not – no matter how wealthy or not -- will benefit from a step-by-step approach, building sophistication one step at a time. HENRYs,(High Earners Not Rich Yet), retirees, college graduates, young parents and single parent households are just some of the key groups who will benefit.
In a recent article, TKSmartworth points out the three key ingredients to help keep personal finances on track.
1. Building a realistic budget
2. Preparing to pay taxes and plan ahead
3. Managing credit smartly including understanding the best sources for credit; credit cards, credit scores and mortgages
TKSmartworth founder, Tom Kutzen, states, “Budgets are often overlooked as something too basic to be effective. However, understanding what the real and hard costs of living are can help keep personal finances on track and avoid the pitfalls of unexpected inflationary costs.”
In a post-COVID world, the new normal may be one of a rapidly changing economy as everything from inflation and purchasing power continue to evolve to a reactive market. Making a smart recovery will mean understanding the nuances of the ever-shifting markets. TKSmartworth aims to provide up-to-the minute information on the latest topics in finance to help investors seek accurate information and insights in a one-source user-friendly format.
Developed as a one-stop resource by Tom Kutzen for investors looking for insights based on up-the-minute information The website is developed for general audiences as an educational tool. Unlike many financial sites, it is not intended to offer specific financial advice and is not connected with any brokerage firm, bank or other financial institution. The information contained in the site is neutral and unbiased and is meant to provide educational material only.
ABOUT TOM KUTZEN:
Tom has more than forty years of experience in many markets, managing banks, portfolios, risk and product development. He has established new markets in emerging countries, served as a consultant for countries in developing markets, advised financial institutions, developed and defeased financing for public housing, built new capital markets in Asia, served on the Asset and Liability Committee for banks, managed risk desks and portfolios. Blending the experience of Treasury management in banking, risk management and economic theory with a focus on finance to improve capital markets, Tom has made a direct and positive impact on both emerging and developed economies.
Tom is now sharing his years of experience in the capital markets with individuals and organizations outside the financial services industry to help them develop the skills necessary to further their own financial education and economic success.
