Here Are Americans' Financial Goals for 2020: Fidelity

Living Debt-Free 

Thirty-eight percent of survey participants said their personal debt was a top concern heading into 2020. Indeed, a debt-free life was the chief motivator for making financial resolutions for 68% of respondents, followed by 56% who wanted to get control of daily expenses and 54% who had their eyes on a comfortable retirement.

Fidelity Investments said this emphasis on debt reduction may be explained by the fact that 28% of respondents said adding to existing debt or taking on new debt during the past year had been a big financial mistake or had resulted in a major setback.

For baby boomers, at least, focusing on debt had a silver lining. Twenty-nine percent credited being in a better financial situation this year than last because they had refinanced, paid off or reduced debt or loans. This compared with 21% of Gen Xers, 19% of millennials and 6% of Gen Zers.

“Boomers are getting the message that the closer they get to retirement, the more essential it becomes to get their debt under control to make the most out of retirement savings,” Ridolfi said.

Other Survey Findings

Unexpected expenses topped the participants’ list of financial concerns in the new year — not surprising, Fidelity said, given the desire of so many to gain more control over their finances. It noted that financial concerns relating to factors within a person’s control included credit card debt and not saving enough.

Besides taking on too much debt, researchers asked respondents about other common financial mistakes or setbacks during the past year. Thirty-three percent purported not to have made any big mistakes this year. The most commonly cited small one was dining out too much.

Making a resolution is one thing, keeping it is another. Here are the tips on how to do so by those who reported that they had successfully kept theirs in 2019:

• Set clear and specific goals: 51%
• Set realistic goals that are easy to maintain long term: 48%
• Set smaller milestones along the way to stay motivated: 41%
• Keep a record of your progress against your goal: 39%
• Enjoy the feeling of making progress to help stick with it: 37%

“We see how important a sense of gratification can be in helping people stay motivated to reach their financial goals,” said Ridolfi. “Achieving one small goal can often be the inspiration that leads to even more success down the road.”