Americans are once again ready to set the resolutions for the new year but this time on the priority list is the financial resolutions for most of the individuals. Setting a financial goal will set an individual free from the burden of apprehensions. According to Fidelity’s 2024 Financial Resolutions survey the topmost three financial resolutions for Americans are to save more money (41%), pay down debt (38%) and to spend less (30%). As per the data of Statista’s Consumer Insights survey, financial goal setting has leapfrogged all the other physical and mental health resolutions. In the same survey one in four Americans want cut their spendings on living expenses. According to Motley Fool Ascent’s 2023 Financial New Year’s Resolutions survey results, a significant 82% of millennials and 74% of Gen Zers intend to establish financial goals for the upcoming year. In contrast, only 69% of Gen Xers and a mere 49% of baby boomers expressed a similar intention.
Skeptical Questions of Americans 
Though many Americans like us want to have financial goals as priority still many of us some skeptical questions like
- Do I have enough knowledge and education to follow financial resolutions?
- Am I financially prepared for particular financial resolutions?
- Will I be comfortable in changing my spending habits for keeping resolutions
Inflation: The Spoiler 
The rise in the inflation in past year has been the prime reason the citizens were not able to attain their financial goals. Along with-it last year has been a challenging year economically for most Americans due to geo political disturbance, inflation, disrupted job market or due to ongoing impact of pandemic. Americans feel and fear that this year also skyrocketing inflation and increasing mortgage interest rate will be plunderer in attainment of financial goals. Despite this, quantitative goals in terms of financial numbers will inspire Americans in setting new financial goals. Lets delve into some financial resolutions which will not only help Americans to have better financial security but also prepare them to beat inflation.
Areas of Financial Deficiency and Remedial Measures
1.Create Budget
A effective budget is foundation of the financial resolution. Prepare a budget that can outline your income (including part time income, income from investment etc.), expenses and saving goals. If previous years budget is with you compare your new budget with it and check the deviations. You can prepare either weekly, fortnightly monthly or yearly as per your convenience and budget available. Budgeting will not help you mange you finances efficiently but it will also help you in decision making, allocation and management of resources.
Measures for Effective Budgeting
- To track financial expenses, you can take help of budgeting app Apps like Mint, YNAB (You Need a Budget) or the traditional spreadsheets available online or in market.
- Divide the expenses under various heads (such as Food, Clothing, Entertainment, School Expenses etc.) to detect which heads need immediate attention.
- Always set attainable goals, don’t prepare budget which are unrealistic to be followed.
- Keep track of your spending
2. Funds for Emergency
Emergency is an emergency, it does not take appointment before knocking the door, remaining prepared for it is proactiveness. It will help in dealing with unforeseen situations like medical emergency, job loss, mis happenings like floods, cyclones, or pandemics etc. Your emergency fund will depend upon family size, average age of family members, earning members, any past medical history, health expenditures etc. Emergency Planning is Your Shield Against Last-Minute Loans with High Interest Rates.
Measures for Emergency Planning
- While preparing budget ensure that you allocate specific funds for emergencies.
- Any change in income and expenses calls for reassessing and readjusting the emergency funds.
- Cut down on unnecessary expenditures and increase the fund allocation to emergency funds.
3. Debt Reductions
Now, why debt reduction should be your important resolution because as per Motley Fool Ascent survey American households carry a total of $17.29 trillion in debt as of the third quarter of 2023, and the average household debt is $103,358 as of the second quarter of 2023. Debt trap is a big trap making Americans hollow financially. Gradually, you should plan to reduce debt burden otherwise you will end up paying more interest.
Measures for Debt Reduction
- List out all the debts in form of credit cards, debt cards, auto loan and their interest rates.
- Consider paying off the high interest debts
- You can also consider taking help of credit counsellors, they will review the financial situation and customise your debt repayment accordingly.
4. Educate Yourself
The 2023 report on America’s Financial Literacy Crisis highlights the lasting consequences of inadequate personal finance education, impacting individuals long after their high school years. 75% of Americans are not confident about their knowledge about personal finance. The financial awareness will helps in better financial decisions and planning.
Measures for Financial Education
- To expand financial knowledge, you can read financial book of renowned authors, articles, financial blogs and YouTube channels.
- Seminars, Workshops, government or NGO financial literacy awareness programs will deepen you knowledge and understanding about the planning money, savings, and investing.
- Financial market keeps on changing, thus keep yourself glued to financial TV channels and newspapers to be informed about latest changes going around and plan your money strategies accordingly.
5. Improve the Credit Score
You must be all aware that any credit score above Exceptional credit score in USA in somewhere between 800-850, whereas score between 740-799 is considered very good and a good credit score helps in easy access to loans at discounted interest rate, easy renting of apartments and competitive price for car and homeowner insurances. Maintaining good financial score has some undue advantages and other financial benefits.
Measures for Credit Score Improvement
- If you have limited credit history, then consider taking a credit card to build your credit history.
- Regularly review your credit reports for any discrepancies, dispute against any disparity.
- Reduce your credit card limit and payment of high interest credit card should be prioritised.
As we approach 2024, the financial arena will be filled with challenges and opportunities yet driven by the desire for financial safety and security, Americans are all set to resolve for financial goals. Setting specific and achievable financial goals is paramount, backed by a commitment to implementing practical resolutions. Whether it’s creating a robust budget, fortifying emergency funds, gradually reducing debt, enriching financial literacy, or enhancing credit scores, these actions not only build resilience against economic uncertainties but also pave the way for a future of financial empowerment and success. The process may be gradual and setbacks can be part of journey but with armed financial knowledge and strategic plan will help individuals turn challenges into opportunities, paving a path towards prosperity in upcoming year.