Neglected Financial Resolutions for Long-Term Stability and Wealth Management

Person using laptop savings account application

Americans are gearing up to tackle their finances in 2025, with nearly half making better financial planning a New Year’s resolution.

At a Glance

48% of Americans plan to make and keep a financial planning resolution in 2025
Top resolutions include paying down credit card debt and creating an emergency fund
40% of Americans feel more financially stressed compared to 34% in 2023
Rising interest rates, inflation, and debt payments contribute to financial concerns
Long-term financial stability requires planning to mitigate rising living costs

Americans Prioritize Financial Planning Amid Economic Challenges

As we enter 2025, a growing number of Americans are recognizing the importance of sound financial planning. According to recent data, 48% of Americans are making better financial planning a New Year’s resolution for 2025, marking the highest percentage in three years. This surge in financial awareness comes as many face increased economic pressures and uncertainties.

The top financial resolutions for 2025 include paying down credit card debt, creating an emergency fund, and increasing retirement savings. These goals reflect a growing understanding of the importance of financial stability and long-term wealth management. However, achieving these objectives may prove challenging for many Americans, given the current economic landscape.

Rising Financial Stress and Economic Pressures

The past year has seen a significant increase in financial stress among Americans. A staggering 40% report feeling more stressed about their finances at the end of 2024, compared to 34% in 2023. This uptick in financial anxiety can be attributed to several factors, including rising interest rates, persistent inflation, and the resumption of student loan repayments.

“For long-term financial stability, Americans need to have a plan to mitigate the effects of rising cost of living,” said Kelly LaVigne, vice president of consumer insights at Allianz Life Insurance. “While inflation has slowed from recent highs, inflation isn’t going away. You need to protect yourself from inflation risk long-term.”

The impact of inflation remains a significant concern, with 69% of Americans worried about its effect on their retirement savings. This widespread apprehension underscores the need for comprehensive financial planning that accounts for long-term economic trends and potential risks.

Strategies for Financial Stability and Wealth Management

To address these challenges and work towards long-term financial stability, Americans are adopting various strategies. Many have already taken steps to improve their financial habits in 2024, including reducing spending, exploring additional income sources, and increasing meal planning to cut costs.

“In an article released by Yahoo! Finance, according to the Federal Reserve, nearly 37% of Americans would struggle to cover an unexpected $400 expense.” – Voyage

Creating an emergency fund is a critical step towards financial stability. Automating savings can help build this fund while also contributing to long-term financial goals. Additionally, developing and sticking to a monthly budget is essential for controlling spending, reducing debt, and saving effectively.

Investing in Financial Education and Future Planning

As Americans navigate these financial challenges, investing in financial education becomes increasingly important. By improving financial literacy, individuals can make more informed decisions about their money and secure their financial future. This includes understanding the value of time in financial planning and assessing whether one’s skills are being fairly compensated in the job market.

“The average American spends $219 per month on subscription services, according to a study by C&R Research.” – Voyage

Reducing unnecessary expenses, such as subscription services, can lead to significant savings over time. Additionally, reviewing insurance coverage and maintaining property can prevent large future expenses and potentially lower premiums. These often-overlooked aspects of financial planning can contribute significantly to long-term stability and wealth management.

As Americans face ongoing economic challenges, the importance of comprehensive financial planning cannot be overstated. By setting clear financial resolutions, investing in financial education, and adopting sound money management practices, individuals can work towards greater financial stability and security in the years to come.