[ad_1] kate_sept2004 / iStock.com January 1st brings a once-a-year opportunity to reset, regroup and reevaluate your financial course — and the events of 2023 caused people to rethink their priorities in the coming year. GOBankingRates conducted a year-in-review survey of more than 1,000 people that asked about their most pressing financial priorities heading into 2024. The differences and similarities between this year’s answers and those the study’s respondents gave last year reveal that plenty has changed since the end of 2022 — but much has also stayed the same. See: 8 Things Poor People Waste Money on That Middle Class and Rich People Do NotFind: 3 Things You Must Do When Your Savings Reach $50,000 Here’s a look at the money goals people will prioritize in 2024 compared to those they pursued this time last year, and what happened in between to alter their course. Sponsored: The Results Are In: Is your bank one of the best of the year? Saving More Money This year, same as last, people have money on their minds. At the end of 2022, about 28% of people said saving more money was their biggest priority heading into the new year. This year, it was slightly less, about one in four, but the end result is the same — no other money goal weighs heavier on people’s minds. Jennifer Kropf, a certified financial education instructor and founder of Wealthy Woman Finance, has seen her clients adopt the same priority, and in the post-pandemic era of high interest rates and high inflation it’s not hard to understand why. “Saving more takes on new importance as a buffer during unstable times,” she said. The good news is that today’s elevated interest rates offer one of the 21st century’s best opportunities to grow your deposits. But high rates are a double-edged sword that has gotten many borrowers in trouble, which leads to the next goal. More: 11 Uncommon Investments That Can Actually Make You a Lot of Money Getting Out of Debt Heading into 2024, people care nearly as much about reducing their debt as they do about saving their money. About 23% cite paying off lenders as their chief priority. Last year, a nearly identical share said the same. Story continues “Paying off expensive debt is always a big priority,” said Kropf. “High-interest debt like credit cards really eats away at your resources, so tackling that provides peace of mind.” With loans more expensive than they’ve been in 20 years, all debt is now high-interest debt, which makes eliminating it an even more urgent priority. Making More Money Coming in third are the 18% who are focused on making more money in 2024. Last year, when the economy was in the throes of inflation that peaked at over 9%, 23% concentrated on increasing their income to cope with rapidly rising prices. It makes sense that more people were scrambling to pad their incomes last year when inflation was at a 40-year high, but prices aren’t falling or even holding steady going into 2024. They’re just not rising as quickly — and people still have plenty of cause for concern. “Naturally, with costs rising, the drive to make more money is strong,” said Kropf. Planning for Retirement This year, roughly 10% said their chief goal is to build a nest egg so they can retire comfortably — that’s double from last year when only 5% said the same. The renewed interest in retirement planning might come from the stock market’s impressive rebound from an ugly 2022 and new opportunities that the Fed’s anti-inflation measures provided investors this year. “As interest rates have risen, most companies have paused issuing debt,” said Christopher Sargent, portfolio manager and research analyst at Bradley, Foster & Sargent, a Barron’s Top 100 Registered Investment Advisors firm. “In 2024, I think we’re likely to see quality companies issuing high-paying bonds. These can be a good compliment to government bonds in a portfolio.” Sticking to a Budget About 8% are most concerned with spending and saving according to a detailed budget in 2024, slightly less than the 11% who had the same priority last year. Kropf would like to see this goal at the top of more people’s lists. “Above all, sticking to a carefully planned budget has become crucial,” she said. “When money is tight, meticulous budgeting is the best way people have found to prevent overspending and feel back in control of their finances.” Developing a Passive Income Stream An identical 8% said their chief priority was generating a secondary source of income. The survey didn’t include that question last year, but Kropf bets that if it had, we’d see a heightened sense of urgency to get money coming in from more than one place in 2024. “There is definitely increased interest in developing passive income streams through things like real estate or investing,” she said. “Having alternative streams that provide money without active work helps create a safety net.” Investing More in Stocks About 4%, the smallest share of all, wants to put more money in the stock market next year above all else. A similar percentage said the same at this time in 2022, which was the worst year for the stock market since 2008. Now however, the S&P 500, Dow and Nasdaq are all approaching record highs once again. It’s likely that investors with cash on hand hear opportunity knocking. “For long-term gains, high-quality mega-cap stocks that have great credit ratings and pay a dividend are generally a good strategy,” said Sargent. “While there can always be bumps in the short-term, consider which companies are likely to be performing better two to three years out than they are now. Look for major trends such as AI and onshoring that give industries like tech and manufacturing a strong outlook. If a company has a particularly high barrier to entry or an asset that can’t easily be replicated by a competitor, that lowers its risk profile. For example, if rail freight has a difficult year, a competitor isn’t likely to build a new railroad anytime soon, so you can count on a degree of stability.” Goals Vary From Year to Year but Hopes and Dreams Never Change Despite some variations across the board, the money goals people want to achieve in 2024 are similar to those they hoped would come to fruition in 2023 — a good income, comfortable savings, growing investments, a secure future, a debt-free existence and a life without the suffocating burden of money stress. “Overall, 2024 goals reflect peoples’ increased motivation to secure their financial well-being through both short and long-term strategies in light of current economic uncertainties,” said Kropf. More From GOBankingRates This article originally appeared on GOBankingRates.com: Saving, Investing and More: How People’s 2024 Money Goals Compare to 2023 [ad_2] Source link Post navigation 26% Of Working Women Are Leaving Free Money On The Table That Could Set Back Their Retirement Musk told Twitter investors they wouldn’t lose money