Getting a financial strategy in order can be an important aspect of an American’s wider plan for their money this year. Confidence in budgeting may have a sizable number of people looking toward making purchases this year.
Close to one-third of those polled noted that they would like to remodel their home before the end of the year, which was slightly higher than 31 percent last year, according to a report from American Express. Nearly 10 percent of Americans felt they would purchase a new home this year, which is close to the same level last year.
A total of 24 percent said they would acquire a new or used vehicle this year, which is down marginally from 2013’s 26 percent, the report explained. However, the average spending level individuals projected is 7 percent less than in 2013.
“Smart spending is still the name of the game in 2014,” said David Rabkin, senior vice president of U.S. consumer lending products at American Express. “The lessons of the recession are top of mind for Americans, who say they will keep saving and setting financial goals. That said, across income groups, Americans are optimistic and ready to splurge a little this year, planning leisure trips, renovating their homes and opening their wallets for little things, like a night on the town or a new outfit.”
Many people value saving this year
The early part of the year is a time when many to look for ways to improve financial standing. This can be done in myriad ways, but there is a notable trend coming from the American public.
Approximately 54 percent noted that they would try to save more money this year, the report showed. This was significantly higher than the 33 percent recorded in 2013. It also was higher than any other resolution – financial or not – during 2014.
A total of 85 percent of individuals aim to reach some sort of financial goal during the year, with the majority focusing on savings and cutting debt, the report noted. The most common response from the public was that they would improve savings from primary income. Approximately 53 percent said this, slightly higher than the 51 percent one year earlier. Another 26 percent noted that they would save some money from their tax return, which was the same level as 2013.
Financial resolutions popular among Americans
Another survey showed further details that many people may be trying to repair and grow their personal finance situation.
Approximately 55 percent of Americans committed to a financial resolution this year, according to a report from Fidelity Investments. The level is notable due to improving finances becoming an important trend among individuals. More than one-quarter of Americans felt they are in a better situation financially now than at this point in 2013. At the beginning of last year, just 19 percent said the same when looking back to 2012.
“These findings suggest individuals are taking more control over financial matters, leading them to feel better about their personal situations, which is a great way to ring in the New Year,” said Ken Hevert, vice president of retirement products at Fidelity Investments. “Making financial resolutions, such as saving more and paying off debt, can have a tremendous impact on the financial and emotional well-being of a household, so it’s encouraging to see that so many Americans intend to build a stronger financial foundation in the year ahead.”
A total of 54 percent of Americans noted that they would like to save more money this year, the report added. Another 24 percent prioritized cutting down debt.