‘Tis the season for financial resolutions, and in 2024 Americans are ready for a “resolution revolution” by gearing up for a year of new chapters and living practically.
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According to the Fidelity Investments’ study, 2024 New Year’s Financial Resolutions, two-thirds of Americans are considering a financial resolution for 2024.
Kelly Lannan, Senior Vice President of Emerging Customers at Fidelity Investments, said that this finding is not surprising, considering Americans are approaching the new year with more financial resolve than there was going into 2023.
“After the stresses of the last few years with continued inflation and market uncertainty, Americans are understandably taking a practical view of their financial situation,” said Lannan. “This is an encouraging indication of the grit and resilience we can tap into when the financial going gets tough.”
What two resolutions are Americans considering the most?
The top financial resolution being considered for 2024 remains the same as every other year: saving more money and spending less money. According to Lannan, with the continued inflation and market uncertainty of the last few years, it’s not surprising to see Americans still prioritizing saving more and spending less.
Additionally, nearly a third of those polled plan to readjust their budget due to student loan payments resuming.
“Paying down debt may feel like even more of a priority for some after student loan payments resumed this past October following a more than a three-year pause,” Lannan said.
The resolution for emergencies
Interestingly, one resolution rising in the ranks since last year’s survey is a vow to increase emergency savings with an overwhelming majority (81%) of Americans making the resolution to build up their emergency savings in 2024.
This is not surprising, as among those who experienced a financial setback in the last year, 45% said they had to dip into emergency funds due to inflation, according to the survey.
This was more salient in certain generations, namely millennials, as 19% of them said they had to empty their emergency fund completely to address the financial setbacks, while 20% said they didn’t even have an emergency fund.
2024 will be the year of the “Resolution Revolution”
According to Lannan, the financial realities of the last year has not only led to 66% of Americans considering a financial resolution for 2024, but to a whopping 92% saying they are thinking differently about their finances going forward. Indeed, one-third of those polled plan to make their finances more of a priority and are considering more conservative goals.
Additionally, “70% of Americans claim they have a plan in place to reach their financial goal,” she said. “Having a plan in place is a crucial component to successfully reaching your goal, so it’s encouraging to see people not just think differently about how to approach their finances but take the necessary steps to ensure they’re successful.”
Tips for sticking to these resolutions
Setting goals and making resolutions requires being realistic with oneself, said Lannan, adding that many people set themselves up for failure before even getting started by setting unrealistic or overly ambitious resolutions.
“If a resolution is too challenging for someone or requires drastic lifestyle changes, individuals may feel overwhelmed and give up entirely,” she said.
A quick and easy way to overcome this is by setting specific, achievable and realistic resolutions that can be reached with small milestones. In addition, Lannan noted that any resolution without a plan in place to reach that goal is a recipe for failure or worse: resolution burnout.
This is reflected in the study, which indicates that more than half (54%) of Americans admit they feel overwhelmed by their personal finances and 31% say they have a stressful relationship with money.
“Without a roadmap, individuals can struggle to make consistent progress and without progress, we know many end up abandoning their resolutions,” she added.
Finally, Lannan noted that with this increase in realistic financial resolutions, the new year looks bright.
Read: 10 Things Frugal People Never Buy During the Holidays
“The good news is 70% of Americans claim they have a plan for reaching their financial goals — paving the way for a steady and secure 2024.”
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This article originally appeared on GOBankingRates.com: Americans Plan for ‘Living Practically’ in 2024 — 4 Financial Resolutions They’ll Be Making in the New Year
