With the arrival of 2018, many are formulating their new year’s resolutions. If previous years are any indication, “getting healthy” will likely be at the top of the list. But, financial resolutions will not be far behind!
It makes sense - according to an Op4G survey of 2000 American adults, 87% are concerned about their financial future.
35% worry about meeting their regular financial obligations, whether it’s a mortgage payment, a credit card payment etc. 30% (especially men) worry about having enough cash to “maintain a comfortable lifestyle” and 28% worry about an unexpected financial emergency, like a medical issue or car accident.
These financial fears are not unfounded. As of 2017, American debt remains disturbingly high. The average US credit card debt, for example, is about $5000 per household, while interest rates hover around 16.75%. Furthermore, the average mortgage debt is nearly $173,000 and the average auto loan exceeds $30,000. At the same time, Americans are ill-equipped to pay off this debt. More than half of Americans (57%) have less than $1000 in their savings accounts – and 39% have no savings at all!
So what financial resolutions might we expect for 2018? Recently, Op4G polled 1,905 American adults on their financial resolutions for the year ahead. Nearly a third (32.78%) resolved to save for retirement, which costs an average of $738,400). Almost as many 29.85% vowed to pay off their credit card debt. Finally, a minority of respondents said they would tackle their mortgage:11.64% would prepay while 8.97% would refinance.
Whatever the resolution, the challenge will be sticking to it (beyond a few months)! An Op4G survey found that in the past, approximately 27% of respondents achieved their resolution to save for retirement and 24% paid off credit card debt, but only 3% successfully prepaid their mortgage.
We hope these findings help you with your 2018 New Year's Resolutions. Interested in doing financial research with Op4G? We offer a dedicated team and are sure we can help exceed your research goals this New Year!