2024 is ripe with possibilities yet Americans are a little apprehensive of what lies ahead financially. America’s biggest monetary goal in 2024 is to save more money. With an election year approaching, retirement concerns and a potential recession on the horizon, financial confidence has been hard to come by. Let’s explore some of the tried-and-true methods to create financial confidence as well as some of the up-and-coming trends in personal finance.
Save + Pay Debt
Let’s begin by addressing the highest priority: saving money. Finding ways to save and pay down debt may be one of the most effective ways to build financial confidence in 2024. According to a recent Bankers Life survey, 68% of participants[1] stated financial pressures are coming from grocery bills, while 60% indicated stress arising from utility bills. Given the essential nature of food and utilities, the fact that more than half of people are struggling with these issues is concerning.
At a broad level, paying off debt, getting serious about your budget and setting savings goals are all ways to ultimately save more money. Bankers Life has created multiple resources for how to do each of these in detail. Get all of the details here:
AI for Financial Concepts
Artificial intelligence (AI) is on the rise and permeating many industries as it settles into society as we know it. Since the launch of ChatGPT in 2022, AI has become more accessible to the general public offering new opportunities to grasp concepts and simplify tasks. This Forbes article suggests utilizing AI cautiously in the finance space.
One particular way to leverage ChatGPT and other AI tools is to increase your knowledge of financial concepts. With the ability to adjust the difficulty level of information, you can have complex financial concepts broken down to a very elementary level. Take advantage of these tools and master some financial concepts.
Boost Credit Without the Debt
Building credit can be an empowering way to foster financial confidence and it can also present some risks to your overall financial picture. One way to build a credit history without debt is to explore some alternative programs. Certain programs, like TomoCredit or Experian Boost, offer ways to build credit without carrying a balance. These programs report to credit bureaus to help you build credit without the threat of carrying debt and falling into an interest rate trap.
Evaluate Insurance Costs
Insurance is a key element in your full financial picture. It can play a pivotal role in defending and protecting the assets you have worked so hard to earn. A new year is a great time to evaluate your insurance coverage and determine if you have adequate coverage or are seeking some adjustments. Having the right insurance and the right time can make all the difference in your financial landscape.
Home In On Retirement
According to a recent CNBC survey, 56% of Americans said they are not on track to retire comfortably. Clearly defining retirement goals and taking actionable steps may be one of the most powerful tools for securing an excellent financial future. If you are concerned about your retirement progress, you are not alone. In a recent Bankers Life survey[2], almost 25% of participants recorded losing sleep over their retirement savings in the last year.
Winning at retirement doesn’t have to be complex. Basic tactics can often be the most effective, like consistently contributing to your retirement fund and avoiding early withdrawals. Simple compound interest works to your advantage by simply contributing and letting it grow. Automating these contributions can be helpful, and setting clear target goals can significantly influence investment success.
Time can be your asset here; use it to your advantage.
Have an Ally in a Financial Advisor
Last year, Bankers Life reported that 76%[3] of their participants were concerned about the rising cost of living expenses and how it would affect the enjoyment of their retirement. Given the uncertainties in the economy, an upcoming presidential election, and the lingering effects of COVID on the economy and supply chain, these concerns are not surprising.
Working with a financial advisor not only provides data-backed financial support but can also reduce stress around the topic in general. Achieving your financial goals naturally comes with its own set of hurdles; partnering with a financial advisor makes reaching financial goals for achievable. Feeling confident in your financial future is for everyone.
For even more readily available financial tips, follow our personal finance page.
Bankers Life is Here
Whether you are looking to achieve financial confidence, seeking financial growth strategies or simply keeping up with top financial trends, Bankers Life is here for you. Beside you every step of the way, our agents and representatives help guide you through life’s largest financial milestones. Start here to connect with our team and continue your successful financial journey.
[1] CNO Financial Group, Helping Consumers Navigate Economic Uncertainty, 2023, p. 4.
[2] CNO Financial Group, Helping Consumers Navigate Economic Uncertainty, 2023, p. 4.
[3] CNO Financial Group, Helping Consumers Navigate Economic Uncertainty, 2023, p. 5.
