A wave of optimism as a new year approaches is inevitable, but for 2024 it may not include personal finances according to a new poll.
Two thirds of respondents to the survey from Bankrate.com said they do not expect their own financial situation to improve next year with one quarter believing it will be worse than in 2023, including 9% who are expecting a significant decline.
Inflation remains the number one factor in this pessimistic outlook with 61% of those who do not expect improvement in their finances citing this as a barrier. Other issues cited include stagnant/reduced income, interest rates, debt, return on investments or savings, and bad spending habits.
However, 37% of poll participants think their finances will be better next year including 12% who think this improvement will be significant.
The main factor here is higher income (42%), with better spending habits, reduced debt, returns from savings or investments, and lower inflation.
Across generations, boomers are most pessimistic about their finances in 2024, while Gen X are split, and millennials and Gen Z are more upbeat.
The survey also asked about financial goals for the incoming year with paying down debt ranking top (22%).
Increasing income (perhaps with a higher paid job or second job), saving for emergencies, budgeting, investing more, and saving for retirement were all common goals mentioned.
“Paying down debt has been the most commonly cited financial goal in each of the past 3 years,” said Bankrate chief financial analyst Greg McBride, CFA. “But that goal does take on added urgency with rates on credit cards and home equity lines of credit at record highs, mortgage rates at more than two decade highs, and auto loan rates at the highest in more than 15 years.”
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Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
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