Many well-intentioned people enter the new year armed with multiple financial goals, but struggle to meet them. Some simple tweaks to these resolutions could make all the difference in 2021, according to MoneyRates.com.
The personal finance site polled 3,000 people, a majority of whom listed their financial priorities as save more, spend less and reduce debt.
The survey found that 61% of respondents intend to save more in the next 12 months. This is a pressing issue for those 55 or older — but saving large sums of money becomes more difficult after age 50, Money Rates noted.
Thirty-eight percent of respondents reported that creating a budget with a specific savings amount was their primary approach to saving, followed by setting up automatic deposits into savings accounts.
“It’s concerning that 28.1% of those who say they plan to save more don’t identify any specific steps for how they plan to do so,” Richard Barrington, MoneyRates’ senior financial analyst and spokesperson, said in a statement.
“On the positive side, over a third of people who intend to save more plan to start by creating a budget.”
Barrington said a budget is the most important step to boost savings, as it creates a specific savings goal but also ensures that more money is coming in than going out.
Getting Out of Debt
Fifty-four percent of survey respondents said they hope to reduce how much they owe in the year to come. They plan to do so by minimizing discretionary spending and increasing monthly payments.
This makes good sense, MoneyRates said, but suggested that there could be missing elements that create speed bumps to success.