This year’s record-high inflation paired with a looming recession is causing more and more Americans to switch their New Year’s resolutions from focusing on their bodies to targeting their money.
Roughly one in three people surveyed say they want to save more money, according to a New Year’s Financial Resolutions Survey conducted by Wallet Hub, blaming inflation and an impending recession.
“The time to get your house in order has never been better than it is right now,” said Stephen Patterson, a financial strategist at Key City Capital, a private equity firm based in Dallas, Texas.
There are several ways to stick to financial goals in the coming year. To save more, make it a priority, Patterson said.
“Save first. Before you pay your bills, before you do anything,” he said. “Take that 10 percent or 15 percent of your overall income and put it someplace where it will gain some level of interest, but where you can access it.”
To slash credit card debt and improve credit scores, make payments on time and don’t carry over balances each month, he said.
Something else: steer clear of buying big-ticket items in 2023.
“Interest rates have gone up significantly,” Patterson said. “Whether it’s buying a new car or a buying new home, right now is not the time. If you can avoid those large purchases, it will go a long way in closing the gap.”
And when the New Year’s resolution becomes overwhelming, don’t give up.
“Don’t get discouraged if you do stumble,” he said. “The struggles are part of creating the new habit. You did well in January, you struggled in February, pick it back up in March.”