Americans Adjusting Financial Resolutions Amid Economic Concerns

As the New Year approaches, a Fidelity Investment study has unveiled that two-thirds of Americans plan to make financial resolutions for 2024. However, a staggering 92% of respondents indicated that their goals are being adjusted based on economic conditions experienced in recent years. The survey identified inflation as the top concern, prompting many to reevaluate their financial management strategies.

FOX Business sought guidance from certified financial planner Holley Cary, Vice President, and Senior Financial Planner at First Horizon Advisors. Cary provided practical and achievable financial resolutions for individuals navigating uncertain economic times.

1. Building an Emergency Fund: Cary emphasized the importance of starting with an emergency fund, particularly for those without substantial savings. She advised individuals to scrutinize their spending plans, identifying areas that can be trimmed. By gradually setting aside even small amounts, aiming to eventually save 10% of income, individuals can build a financial cushion equivalent to six to twelve months’ worth of living expenses.

2. Prioritizing Saving: Cary recommended assessing available funds each month or pay period to establish a habit of “paying yourself” first. Treating savings as a fixed expense and automating transfers from paychecks into savings accounts can ensure consistent contributions.

3. Debt Reduction: For those grappling with debt, Cary suggested creating a list to determine the most effective payoff strategy. Tackling high-interest credit cards, starting with the lowest balance, can be a successful approach. Successes in debt reduction can then be redirected toward larger debts or emergency savings.

4. Cutting Expenses: Reviewing all expenses and identifying areas for reduction is crucial. Cary highlighted subscriptions, such as streaming services, publications, and insurance, as potential areas for scrutiny. Eliminating unused services and seeking better deals on necessities can contribute to overall savings.

5. Staying Accountable: Cary emphasized the challenge of maintaining resolutions over time and recommended finding an accountability partner, whether a professional financial planner, friend, or family member. Sharing goals, even without divulging specifics, can increase the likelihood of success. Cary likened the process to a “health and wellness journey,” where enlisting others’ support can reinforce commitment.

As Americans gear up for a new financial year, these practical resolutions provide a roadmap for navigating economic uncertainties and working toward financial stability in 2024.