? As we have entered into the new year, reflections on financial challenges underscore the importance of setting resolutions for 2024. Despite a moderation in inflation, the impact of increased costs has left a lasting mark on savings and overall financial well-being.
?? A recent Bankrate survey reveals that over half of Americans (52%) now acknowledge that money negatively affects their mental health, a significant increase from the previous year's 42%. Addressing financial challenges is not just about adapting to economic shifts; it's also crucial for overall mental and emotional well-being.
?? Key Insights from Bankrate's 2023 Survey:
- Of those concerned about money, 56% worry at least once a week, with 29% worrying daily.
- Economic factors, including inflation (68%), rising interest rates (31%), and job instability (29%), are cited by 82% as contributors to negative mental health impacts.
- Not having sufficient emergency savings is noted by 56% as a factor affecting mental health negatively.
- Gen Xers and millennials are the most likely to report that money negatively affects their mental health, with 60% and 55%, respectively.
?? Financial Challenges Impacting Americans' Goals:
- 56% feel behind in retirement savings.
- 57% are uncomfortable with their level of emergency savings.
- For those without a home, 47% attribute it to the current housing market.
- 37% are hopeful about improved financial situations in 2024, while 26% believe it will worsen.
Here are 10 Practical Resolutions to Enhance Financial Well-being in 2024:
- Consolidate Credit Card Debt:Given that total credit card debt in the U.S. exceeds $1 trillion, consider paying off credit card balances, employing strategies like the debt avalanche or snowball method.
- Create a Practical Budget:Craft a balanced budget tailored to income and priorities. Utilize apps and tools to track expenses and maintain a sustainable financial plan.
- Prioritize Saving Money:Combat bad spending habits by focusing on saving first. Automate contributions to make saving effortless.
- Start an Emergency Fund:Initiate or enhance an emergency fund to cover unexpected expenses, providing financial stability during unforeseen circumstances.
- Boost Your Retirement Savings:Take advantage of employer 401(k) matches, assess investment portfolios, and stay committed to long-term retirement savings goals.
- Learn Investment Strategies:Explore investing outside retirement accounts, diversify portfolios, and consider robo-advisors for a hands-off approach.
- Improve Credit Score:Enhance credit scores by maintaining timely payments, reducing credit utilization, and avoiding unnecessary credit applications.
- Improve Financial Literacy:Dedicate time to educate yourself on personal finance through books, workshops, online courses, and financial apps.
- Update Your Beneficiaries:Review and update beneficiary designations on financial accounts, ensuring they align with current intentions, especially after life changes.
- Look for Ways to Make Money:Explore side hustles or additional income streams to supplement finances and achieve specific financial goals.
Incorporating these resolutions into your financial plan can contribute to a more secure and balanced financial future. ?? #FinancialWellness #FinancialGoals #SavingsStrategy
