New Jersey is called the “Doorway to New York” because of its strategic location and proximity to its largest metropolitan area on the United States’s East Coast. It combines modern metropolises and picturesque coastal towns into one state, giving its residents unique opportunities and high prices.
Living here costs 12% more than the U.S. average, which is why there is high financial stress. This explains why nearly half (48%) of people consider moving out of state to reduce their financial burden.
This is often due to the high housing costs, food, childcare, transportation, healthcare, and taxes. All of these expenses become a cause of stress for many families. In this article, you will learn how to manage your finances in this environment effectively and how to deal with financial pressures.
What is Stressed About Money?
This is stress due to various financial situations: lack of money, debts, upcoming large expenses, rising prices, or lack of savings. Sometimes, the solution can be found in the simplest things: reviewing the budget or finding legitimate payday loans in New Jersey that will help you survive a difficult period. And if short-term stress is normal and can sometimes even teach you to adapt to changing external conditions, then long-term financial stress pushes a person to actions that have a destructive effect on his life:
- People have begun to put off doctor visits even when showing symptoms, especially New Jersey residents who face bills of more than $500 and are in debt for medical services.
- Against the background of financial stress, the wish to overeat, smoke, or drink too much is turned on.
- People more often become the victims of depression and anxiety. In such a way, the negative circle forms, when bad conditions of the financial status increase problems of emotional well-being, which, in turn, worsens the financial status.
- The chronic financial stress raises the chances of cardiovascular diseases, migraine, and sleep disorders.
Why Are Living Costs Rising in New Jersey?
The cost of living in New Jersey continues to rise, so it’s no surprise that New Jersey residents are accumulating debt faster than most other states and already have some of the highest debt levels in the United States.
The cost of housing in the state is extremely high. Rents in some areas are 35.8% higher than the national average, making it much more expensive to live here. This is all due to a housing shortage, and demand for it is consistently high. This is especially noticeable in cities like Newark and Jersey City, where real estate is at a premium. Many come here searching for work, since the state is close to New York City, leading to a constant price increase.
But you can’t save money on transportation either. Recent increases in toll bridge and tunnel fares to $22 are not happy either. The reason is the need to update and maintain already badly outdated infrastructure. Besides, the pandemic has also left its mark on the financials. And now these losses have to be covered.
The rise in food prices has not been spared. From December 2023 to December 2024, the food price index increased by 2.3%, with food bought for the home rising by 2.0% and food in restaurants by 2.7%. Electricity, gas, and water are also becoming increasingly expensive. We must invest in new technologies and infrastructure to keep them up to par.
Lastly, there are the taxes. They have always been high in New Jersey but are especially tangible now. This is due to the high standard of living and the quality of service the residents need to maintain. Whatever the case, it affects purchasing power.
8 Simple Tips on How to Deal with Money Stress
Sometimes, all it takes is a few steps to minimize financial stress:
Set Up a Spending Plan and Stick to It
Financial stress is often caused by the gap between the money you spend and the money coming in. You may avoid creating a budget and tracking your spending because you’re afraid of knowing your expenses. However, creating a budget is a critical step in making changes that improve your finances and reduce stress over money. Set a budget that matches your monthly income. Then, use an expense tracker or other money management tool to track your progress.
Create a Financial Cushion
To feel confident even in times of uncertainty like these, set aside a portion of your income for a so-called “cushion.” A financial cushion is money you save as an emergency fund for unexpected circumstances and expenses.
Creating a cushion starts with understanding your monthly income and expenses. Determine the amount that you can regularly save and make it a priority. Even small savings will do the trick. Ideally, a financial cushion should be enough for 3-6 months of normal life, but you can start with a smaller amount and gradually increase it. The main thing is regularity and consistent saving.
Invest in Education
To remain a sought-after specialist and qualify for a better salary or position, you must improve your qualifications, master your skills, and develop.
Education opens doors to new opportunities and also introduces you to interesting people. Investing in education only at first glance seems like an unnecessary expense, but it is an investment that will pay off in the future.
Reduce Unnecessary Expenses
Analyze your expenses over the past months, dividing them into essentials (housing, utilities, food) and discretionary (dining out, subscriptions). For example, a cup of coffee in New Jersey costs about $4.50. If you drink coffee every day, that’s $135 a month or $1,620 a year — money that could be spent on more important things.
Cancel unnecessary subscriptions and services. You can save $20-$50 a month by cutting them. Cook at home — it’s cheaper and healthier. For example, a dinner at a restaurant can cost $50, but at home, it’s two to three times cheaper.
Also, get into the habit of making a list before going to the store to avoid impulse purchases. The average New Jersey household spends about $250 a week on groceries — by making a menu, you can save on unnecessary purchases. And by comparing prices before shopping, you may even be able to find a cheaper item elsewhere.
Entertainment doesn’t have to be expensive, either. New Jersey has plenty of free activities, like walking in parks or free exhibits.
Find an Additional Source of Income
If your main salary is not enough to live on and you are stressed about money, consider finding additional sources of income. This can yield a stable profit and serve as a financial cushion.
Many Americans earn money by freelancing. Popular services include copywriting, design, programming, and marketing. This is a great option for those with the necessary skills to work remotely. In the same way, you can promote your services in areas such as languages, finance, or IT. Social networks or tutoring platforms are suitable for this.
Handmade products such as accessories, textiles, cosmetics, and decorative elements sell well in local markets and through social networks. If you start working in this direction, it is important to create a unique product and think through marketing and presentation to attract buyers.
Courier and taxi services are among the most accessible and popular areas for additional income today. The services offer flexible hours and bonus programs, which allow you to combine this activity with your main job.
Manage Financial Stress with Smart Borrowing
Sometimes, life throws up situations when you need money urgently, and it’s still a long way until payday. And no matter how strange it may sound, payday loans can help. They help when there is no time to look for other options or wait until the necessary amount accumulates. For example, if equipment breaks down, an unexpected bill arrives, or you need to buy something right now — such loans can be a quick solution.
But it is important to remember that this is not the only way to cope with financial difficulties. You can always consider other options, for example, larger loans with a long repayment period or the same credit card. The main thing is not to grab the first solution, but to soberly assess what will suit you.
At the same time, experts advise: if you have several debts, pay attention to the interest rates. It is more logical to pay off those with higher interest rates first — this will help save on overpayments and quickly close the debts.
Take Advantage of Government Assistance Programs
If you are struggling to pay your rent, you may want to consider the rental assistance program in New Jersey. The NJ RENTAL Assistance program helps cover your rent and prevent evictions.
The state offers the LIHEAP (Low Income Home Energy Assistance Program) for utilities. This program helps low-income households pay their heating and energy bills. According to statistics, in 2023, more than 150,000 households in New Jersey took advantage of this assistance.
If you struggle to buy food, you can apply for the SNAP (Supplemental Nutrition Assistance Program). In New Jersey, about 800,000 people receive assistance through this program each month, allowing them to buy the food they need.
In addition, Medicaid in New Jersey provides healthcare for people with limited incomes. This is the only way many families can access health care without significant costs.
Don’t Get Into Bad Habits
Financial stress can cause you to turn to alcohol, drugs, or gambling in the mistaken hope of solving your financial problems. However, these habits will inevitably cost you even more money and will, of course, impact your health.
Focus on free stress relievers such as walking, exercise, meditation, and meeting with friends. And if you feel an overwhelming temptation to abuse substances, then it is important to seek help from a mental health professional.
Conclusion
Financial stress significantly affects our physical and emotional well-being, but don’t let it control your life. Following these tips can minimize money struggles and lower stress levels. Stability doesn’t happen overnight, but you’ll move closer to your goal with each decision.
Author of the article: Latoria Wiliams (1firstcashadvance.org)
Description: With rising costs in New Jersey, people feel more financial stress. A budget, saving for emergencies, and cutting unnecessary expenses can help manage the situation better.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.