Yahoo Finance Here Are Americans’ Top Financial Goals for the Next Year
With the economy’s turbulence, many people’s financial goals and spending habits have shifted over the last few years. However, one constant priority for Americans has been trying to save more money while paying off debt.
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With increased interest rates from the Fed’s battle against soaring inflation, it’s more important than ever that Americans find ways to pay off debt while beefing up their savings accounts.
Here are the top financial goals for Americans in 2024, and what can be done to make them a reality.
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Americans’ Top Financial Goals for 2024
According to a survey conducted by GOBankingRates of over 1,000 Americans, the top financial goal for people was to save more money, with 25% of surveyed choosing this as their main priority. The second priority for those surveyed was to get out of debt, with 23% of respondents choosing this.
Here are the key highlights from the study about the financial priorities of Americans in 2024:
The same survey last year revealed that 28% wanted to save more money in 2023, while 23% wanted to get out of debt. This means that the top financial goals haven’t changed.
28% of those between 35 and 44 wanted to get out of debt in 2024, with only 13% of those in the 18 to 24 range having this as their main financial goal.
26% of the respondents in the 65-and-over range wanted to save more money.
27% of women ranked getting out of debt as their top priority, and 17% of men ranked this as their main goal.
18% of respondents said making more money was a top financial goal for 2024, with 23% last year.
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What Do These Goals Say About Financial Confidence?
The financial priorities of Americans indicate a few key points about financial confidence heading in 2024 and beyond.
Changes Are Needed
Americans will have to become more proactive about their financial goals, said Scott Lieberman, founder of Touchdown Money.
“To save more money and get out of debt in 2024, you’re going to have to go beyond the typical advice of cutting expenses, increasing income, and setting goals,” Lieberman said.
More Awareness is Crucial
“If your goal is to save more money and get out of debt in 2024, the best place to start is with awareness,” said Erika Kullberg, Founder of Erika.com and an attorney and personal finance expert. “Debt can be overwhelming, and it’s very tempting to put your head in the sand and forget about it. But the big problem with debt is that the longer you have it, the more it can mount, especially if you have a revolving form of credit like a credit card that doesn’t have you on a fixed payment plan.
You’ll have to be more aware of your financial goals and what steps you should take to reach them. You can’t afford to ignore your financial problems because they won’t disappear on their own.
“The good news is that if your goals are to save more money and get out of debt in 2024, both of these goals work hand in hand,” Kullberg said. “The faster you pay down debt, the less you spend on interest and the easier it is to save more money.”
How Can People Reach These Financial Goals?
We consulted experts for advice on saving money and paying off debt in 2024. Here’s what Americans can do in 2024 to make their financial goals a reality.
Adopt a Zero-Waste Lifestyle
“You may have seen ‘no spend’ months on TikTok or Instagram, but these aren’t just fads,” said Lieberman. “By adopting a zero-waste lifestyle, which means minimizing what you throw out, repurposing items, re-using them, and avoiding single-use items, you can save money and spend less. This will free up more money for savings and debt repayment — plus you may find you enjoy it!”
Audit Your Spending
“Do an audit of your spending per month and per year,” said Ganesh Pandit, professor and chair of Adelphi University’s Department of Accounting & Law. It’s essential that you figure out where your money’s going so that you can start to determine what kind of changes need to be made. You won’t know where to start until you figure out your spending problem areas.
“Check to see if there are any expenses like subscriptions to things that you buy but do not really use,” Pandit said. “For example, video streaming, pre-cooked meals, entertainment apps, gym membership, and so on. Discontinue those subscriptions right away if you are not using them.”
You likely have room in your monthly budget to make some cuts so that you can allocate more funds towards debt payments until you’re debt-free.
Build Your Emergency Fund Up
“You need to have an emergency fund in place so you can tackle unexpected expenses that arise without turning to high-interest debt like credit cards,” said Kullberg. “Once you have that emergency fund in place, it might benefit you to actually stop focusing on saving money and instead focus on paying off debt.”
Kullberg further argued the case for paying down debt:
“You may want to save for a house or another big expense like a wedding right away, but you can end up saving more by focusing on paying off your debt first,” she said.
Automate Your Savings
Simplify your financial life by automating your savings so that you have fewer things to think about.
“Have a percentage or a set dollar amount out of your paycheck put aside into a savings account that is earmarked for paying off debt,” said Pandit. “Plan to save a predetermined amount of money ($100-$250) each pay period and not just ‘some amount’ of money. When you put a number on the amount of money you intend to save each month, you will likely be more consistent in saving money each period and accumulate the desired saving balance sooner.”
List Out Your Debt So You Know Where You Stand
Before you can get serious about paying off debt and saving more money, you have to figure out where you stand. You’ll want to know exactly how much you owe so that you can determine how much to allocate towards debt payments.
“Make a list of your debts, with the principal balance owed, interest rate, monthly payments, due date, and any other information,” said Pandit. “Compare the list with your most recent credit report to make sure that you are not missing anything.”
Try To Consolidate Your Debt
“If you have multiple debts, try to consolidate them into fewer or one debt using a reputed lender who will not fool you with their unexpected fees and charges,” said Pandit.
One popular strategy for helping people pay off debt involves combining their debts under one umbrella to simplify their lives.
“Make sure that the interest rate on the new consolidated loan is not higher than the average rate on your current debts,” Pandit warned. “Make sure that the new consolidated loan does not cause you to remain in debt for a very long time, or you will incur unnecessary interest costs. If you consolidate your debts into one new debt in this manner, you will find it easier to keep track of one payment.”
Try the Debt Avalanche Method
“I’m a fan of the debt avalanche method for consumers looking to pay off their debt as quickly as possible,” said Kullberg. “With this method, you focus on paying off the highest-interest debts first, gradually working your way down to lower-interest debts. Once you pay off a source of debt in full, you spend the money you would have put towards the monthly payment on the next highest interest rate source of debt. You can make really fast progress this way and save a lot of money on interest payments.”
If you’re not into this debt payment plan, then you can consider the next option…
Try the Debt Snowball
“Rank the debts from the smallest balance debt to the largest balance debt, and pay off the smallest balance first as a low-hanging fruit,” said Pandit. “Then, tackle the next larger loan balance, and so on. As you see yourself paying off your debts completely, it will increase your confidence and motivate you to work harder to pay off your remaining debts.”
This debt payment strategy has been made popular by financial guru Dave Ramsey, who urges people to build momentum by gaining a quick win in their journey. Once you build momentum, it will feel like you’re in control of your finances.
Rent Out Things You Own
If you have little spare time, you can tap into the gig economy to bring in some extra cash from your current possessions. This extra money you generate can be used to build up your emergency fund or get aggressive with your debt payments.
“Beyond renting out a room in your house or your car on Turo, consider renting out items you own but don’t use often,” said Lieberman. “This could be things like tools, camping equipment — even clothes. Platforms like Fat Llama facilitate these kind of rentals, and it’s a way to put your items to work for you, generating income you could use for savings or debt repayment.”
Consider Other Side Hustles
If your main priorities are saving more money and paying off debt, you’ll want to find ways to increase your income to help accelerate the process. This is why you may consider looking into other side hustles like walking dogs on Rover or offering freelance services. While the topic of side hustles is worthy of an entire article, a good starting place is to look into what kind of options exist near you so that you can find ways to bring in some more money.
Get Your Family On Board
Saving money won’t always feel easy, and it’s crucial that those around you understand your goals for the year so they can be on your side.
“Remember that saving money and paying down debt is a ‘family project’ where every member of the family must be on the same page,” said Pandit.
If you’re looking to save more money and pay off your debt in 2024, this article should give you the right tools to get started. It’s critical that you create a realistic plan to follow so that you’re in a completely different financial situation when 2025 rolls around.
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This article originally appeared on GOBankingRates.com: Here Are Americans’ Top Financial Goals for the Next Year
