Why you should make financial New Year’s resolutions
New year, same old finances.
Only about one in four Americans (27 percent) say they will make a financial resolution this year — an all-time low and down from the 43 percent who vowed to do so in 2014, according to data released Monday from financial company Fidelity.
“While the market has reached all-time highs this year, financial new year’s resolutions have slipped to an all-time low,” said Ken Hevert, senior vice president of retirement at Fidelity. “Part of the reason these resolutions are on the decline is because so many people are feeling better about their personal financial situation and are optimistic about what 2018 will bring.”
This comes at a time when more of us than ever may need financial resolutions: Credit card debt hit a record high in 2017, with more than $1 trillion being owed, according to the Federal Reserve. Student loan debt has jumped 150 percent over the span of just a decade. And we’re not saving much either. About 1 in 4 Americans don’t have a single dollar saved for an emergency.
Plus, resolutions are an effective way to combat financial troubles. Fully 58 percent of those who made financial resolutions in 2017 say they’re in a better financial situation now than previously and 53 percent say they’re in less debt, according to Fidelity.
In other words, America, almost all of you should be making financial New Year’s resolutions. Here are some of our favorite apps that can help you spend less and save more, two of the more popular resolutions.
If you want to save money, without having to think about it too much
When you make a purchase, Qapital lets rounds off your spare change to the nearest dollar and then puts that money into your savings. Digit figures out how much you should set aside for savings each day and then automatically saves it for you, plus gives you 1 percent cash back annual on your savings.
If you want to finally stick to a budget
The old standby Mint works well, dividing your spending into categories and figuring out how much money you can reasonably spend; plus it now offers you a free credit score. Other options include You Need a Budget (YNAB) and Wally.