After a financially tumultuous 2023, more and more Americans are making New Year’s resolutions to manage their finances better, set up an emergency fund, pay down credit card debt, and more in 2024.
According to a study by Allianz Life Insurance Co., 48% of surveyed Americans said that they are likely to keep a resolution for better financial planning in 2024. This figure is up from 43% in 2023 and 33% in 2021.
More than 2 in 5 adults who experienced financial setbacks admit to using their emergency funds, and 40%, of all respondents, up from 34% in 2022, expect continued financial struggle in the coming year due to a higher cost of living, higher interest rates, persistent inflation, and higher debt payments, and more.
While inflation is slowly going down, it continues to add extra pressure on Americans. Out of the 29% of respondents who received a pay raise in 2023, only 27% said it was enough to keep up with the increasing cost of living. It stands as a major concern as only 69% of respondents say that the rising cost of living will affect their ability to save for retirement.
However, the onslaught of financial problems is making Americans more vigilant towards their finances. More than 70% of respondents claim they have a way of reaching their financial goals in 2024. More and more Americans are opting for a financial resolution this New Year. The most popular New Year’s resolutions in 2024 were setting up an emergency fund and increasing retirement savings, each having 17% of responses while paying down credit card debt was the plan of 16% of respondents.
36% of respondents said they improved their financial habits in 2023 by reducing spending, 23% said they explored new ways to make additional income, and 22% said they increased meal planning to limit their restaurant bills.
Kelly LaVigne, vice president of consumer insights at Allianz Life Insurance Co., said “For long-term financial stability, Americans need to have a plan to mitigate the effects of rising cost of living.”
“While inflation has slowed from recent highs, inflation isn’t going away. You need to protect yourself from inflation risk long-term,” she added.
Key Takeaways
- According to a survey by Allianz Life Insurance Co., almost half of Americans said their New Year’s resolution for 2024 was better financial planning and budgeting.
- Setting up an emergency fund, increasing retirement savings, paying down credit card debt, and better financial habits were the most popular financial New Year’s resolutions.
- Only about a quarter of people who got a raise this year think it was enough to cover the cost of living.
- One in three respondents claimed they had reduced spending habits in 2023, while about 25% said they explored options to make additional money.
