Americans say 2023 is the year of ‘living sensibly,’ when it comes to financial goals
Consumers say they had significantly less money this past year due to inflation and are taking a less optimistic, more pragmatic view of their finances – save more money, pay down debt and spend less money, says a new study.
Many Americans need professional advice this year, as Fidelity Investments’ 2023 New Year’s Financial Resolutions Study found. Nearly half expect to maintain the savings habits they picked up during the pandemic. Some of the top things Americans are trying to do for themselves in 2023 include taking the time to exercise more, spending time with those they love, worrying less and focusing on things that truly matter.
“After the stresses of the last few years, Americans are understandably taking a pragmatic view of their financial situation,” said Stacey Watson, senior vice president of life event planning for Fidelity Investments. “This is an encouraging indication of the grit and resilience we can tap into when the financial going gets tough. Given the ups and downs experienced, being creative and establishing new financial wellness habits are positive signs many are finding ways to shift the focus, to pay down debt or build up emergency savings. Proper planning and balance are key.”
More than one-third of survey respondents said they are in a worse financial situation than last year, likely because of inflation, and only 65% (vs. 72% in the last study) believe they will be better off in the coming year. The good news? About half said they’re ready to “live sensibly” or “plan ahead,” which means making practical resolutions and staying focused on balancing short-term and long-term financial goals.
Three-quarters of respondents would rather proceed with caution. For those in worse financial shape than last year, more than half blame inflation. Despite these headwinds, two-thirds of respondents are considering a financial resolution for 2023, which is at a similar level as last year. Gen Z-ers (81%) and millennials (77%) are more likely to consider money resolutions than Gen X (67%) and boomers (51%) and are more optimistic about 2023. The top resolutions remain consistent with past years:
- Save more money, 39%;
- Pay down debt, 32%; and
- Spend less money, 28%.
Related: The post-pandemic retirement reshuffle: Getting employees to refocus on saving
“Even if the focus for now is understandably on more immediate needs, our long-term goals and objectives are what keep us going — and planning can help,” Watson said. “Taking charge of your financial situation is a great way to help you feel a sense of control, even when external forces bring challenges. If you are able to, saving more and paying down debt, even small amounts, can have a tremendous impact on the financial and emotional well-being of a household.”