TMCnet News
As New Decade Approaches Financial Optimism Abounds: 78% of Americans Predict They'll Be Better off in 2020, Though 38% Say Personal Debt Is a Top ConcernWith the start of a new decade just around the corner, Americans are feeling optimistic about their current and future financial situation, but reducing the burden of personal debt will be a priority for many who acknowledge they bit off more than they could chew in 2019. According to Fidelity Investments'® 2020 New Year Financial Resolutions Study, 82% of Americans say they're in a similar or better financial position this year than last and remain committed to improving their financial position in the New Year. Low unemployment and a stock market that has reached unprecedented heights have likely helped fuel this confidence, but Americans aren't letting a strong economy take all the credit for their financial success. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191209005078/en/ Top 3 Financial New Year Resolutions for 2020 (Graphic: Business Wire) Most point to good habits as the major reasons for their improved financial situation in 2019, the biggest being saving more money (47%) and budgeting (29%). One-in-four say they're getting ahead because they've been able to work more hours. Though the markets have continued to reach new highs, only 18% cite having investments that performed well as a key reason for their success. Adding to the good news: there is a strong desire to keep this positive momentum going into the New Year. A growing number of Americans intend to continue to be mindful of their money in 2020, with 67% considering a financial resolution related to saving, investing, managing debt, budgeting and retirement planning (up from 61% who made a financial resolution for 2019). The top three financial resolutions, among those considering one, are simple financial principles:
Interestingly, when asked if they had to choose between reaching a financial goal over other popular personal goals, like weight loss, an overwhelming majority (84%) say they would rather save $5,000 than lose five pounds. (Click here for more financial 'Would You Rather' study findings). "It's encouraging that Americans are committed to building up their finances and taking additional steps toward meeting their financial goals, with 50% saying they plan to increase their annual retirement savings and 85% planning to build up emergency funds," said Melissa Ridolfi, vice president of retirement and college products at Fidelity Investments. "A small step like making a resolution for the New Year can go a long way in forming good money habits that can last a lifetime."
Living a Debt-Free Life a Top Motivator for Making a Financial Resolution
The silver lining? Notably, when it comes to tightening their grip on debt: at 29% Boomers, more than any other generation, credit being in a better financial situation now compared to this time last year because they refinanced, paid off, or reduced debt or loans. This compares to just 6% of Generation Z, 19% of millennials and 21% of Generation X. "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," said Ridolfi.
Top Financial Concerns for 2020
Dropping the Financial Ball: Top Money Mistakes & Setbacks of 2019
Financial Resolutions: Making Them and Keeping Them
"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."
Need Help Focusing on Finances? Tips for Getting Started
About Fidelity Investments' 2020 New Year Financial Resolutions Study
About Fidelity Investments
Fidelity Investments and Fidelity are registered service marks of FMR LLC. Investing involves risk including risk of loss. IMPORTANT: The projections or other information generated by Fidelity Retirement Score regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
Fidelity Investments Institutional Services Company, Inc.
National Financial Services LLC, Member NYSE, SIPC
905374.1.0
View source version on businesswire.com: https://www.businesswire.com/news/home/20191209005078/en/ |