Two-thirds of respondents in a recent survey plan to make a financial resolution for the new year.
As the clock strikes midnight and we usher in a new year, improving finances often top the list for many Americans' resolutions. A recent survey by The Ascent found that 67% of Americans are making financial resolutions for 2024.
Read on for a deeper dive into how Americans are thinking about financial goals, New Year's resolutions, and anticipated challenges in the upcoming year.
67% of Americans plan on making a financial resolution for the New Year
Every January, countless Americans set their sights on improving their finances According to The Ascent, two-thirds of respondents to their survey plan to make a 2024 financial resolution for the new year. The most common New Year resolutions include:
Pay off debt: For 22% of respondents, paying off debt is a key goal for 2024. If paying off debt is on your list, prioritize high-interest debts and explore consolidation options. Establish a repayment plan and consider negotiating with creditors for lower interest rates.
Save for milestones: Approximately 16% of Americans are saving for a big milestone, like buying a home or having a baby. If you're saving for a near-term milestone, keep your funds in a high-yield savings account, which allows you to both earn interest and maintain liquidity
Save for large purchases: While many Americans are saving for a specific milestone, 12% are saving for a larger-than-usual purchase, like a TV or phone. Before you splurge, review your upcoming finances and ensure that you don't have any anticipated home or car repairs, or high-interest debt payments.
Boost income: 11% of respondents hope to increase their income in the upcoming year. If this is also one of your goals, you could put together a plan to set yourself up for a promotion; or pick up a side hustle with a flexible schedule.
Build an emergency fund: 8% of respondents are focused on building an emergency fund. According to Bankrate’s Annual Emergency Fund Report, 57% of U.S. adults are currently unable to afford a $1,000 emergency expense. Check out one of our posts on how to save $400 to jumpstart your emergency fund.
Millennials and Gen Z are most likely to make financial New Year's resolutions
The Ascent's survey found that 82% of millennials and 74% of Gen Zers plan to set financial goals for the new year, compared to 69% of Gen Xers and just 49% of baby boomers.
Inflation and interest rates are the greatest concerns for Americans in 2024
Although 71% of survey respondents were confident about keeping their New Year's resolutions, many still had worries about inflation and interest rates.
85% of respondents with a financial New Year's resolution think inflation will make it harder to keep their resolution
80% of respondents with a financial New Year's resolution think higher interest rates will make it harder to keep their resolution
New year, new money goals
As we step into the new year, take time to reflect on your financial goals from the last year and how you'd like to improve over the next 12 months. Focus on ways to maintain accountability. Regularly review your financial progress and adjust your strategies accordingly. Enlist an accountability partner, whether a friend, family member, or financial advisor, to provide support and guidance on your journey. By adopting a thoughtful and strategic approach, you can turn the new year into an opportunity to build lasting financial habits.
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