Making a resolution to improve your finances puts you several steps closer along the road to a better financial security, based on Studies. Simply resolving to pay more attention to your finances improves the chances that your financial health will improve.
According to a recent study, 45 percent of individuals who reported making financial resolutions at the start of 2017 were more debt-free at the end, compared with 34 percent of individuals who didn’t make any financial resolutions within the past year.
In addition those individuals who made financial resolutions were more likely to report they felt financially secure compared to those who didn’t make resolutions (45 percent vs. 34 percent).
The study also found that the three most popular financial resolutions for 2018 were saving more (50%), paying off debts (28%), and cutting back on spending (16%). of those who went beyond making a resolution and actually followed through on them, 66% of them reported that they were “in a better financial situation.”
The potential for “unexpected expenses” can derail financial security, but consumer education can help. Of those individuals who said their resolutions fell short in 2017, almost three quarters said they were derailed by unforeseen expenses, so it makes sense to set aside an emergency fund to create a buffer.