There are already signs of a more positive and affordable 2024. The year’s interest rate hikes have stopped, according to Wednesday’s announcement from the Federal Reserve. This news, together with news of possible rate cuts next year, promptly led to a stock market rally. While the end of rate increases is expected to contribute to a “soft landing” during next year. You may have noticed the phrase “soft landing”. Recently, some economic analysts are hoping that a soft landing — a recovery from inflation that doesn’t result in recession — will become reality, after Wednesday’s Federal Reserve meeting concluded.
Fed officials left interest rates unchanged in their final policy decision of 2023 and forecast three interest rate cuts in the coming year. This tells us that the central bank is moving to their next inflation-fighting phase, even though inflation figures are still above the Fed’s 2% target.
Even though inflation continues to wane, it conspired to make 2023 a year of failed financial goals because of higher retail and fuel prices. While three out of five participants in a recent survey claimed to have stuck to their budgetary guns, an equal number admitted some financial regrets for this year. Also, 75% of that group said that those regrets will lead to new resolutions in 2024. Many people want to save more money and pay down credit card debt. A top savings goal is to add to a rainy-day fund, while goals like funding retirement and saving for children’s education were close behind.
Whether you have financial regrets or not, let’s look at the main causes of money problems, what to expect in 2024, and how to get back on track if needed.
The biggest regret? Not saving more. Currently, inflation and other factors are reducing disposable income and savings. While 2024 may not be the year you’re able to hit your savings goals, it’s still an ideal time to set up new savings accounts with affordable monthly contributions. Reviewing your monthly budgets halfway through 2024 may help you free up more cash for savings.
Overspending was another major regret, with people admitting they went over budget on entertainment. Travel and events like weddings and parties also saw overspending. The cure is simple: plan a budget and stick to it.
Credit card debt takes third place. Some people felt they took on too much credit-related debt, even though inflation affected the prices of essentials. Others felt that they didn’t manage credit well by allowing potentially expensive account balances to grow. If making a payoff plan will squeeze your budget, consider looking into debt consolidation.
People connect financial health to their overall happiness. Start 2024 off right and let Core Bank help you be a part of your New Year’s resolutions from mortgage support to personal finance management tools.