What financial goals have you set for 2024? Or a better question, do you set financial goals for yourself at all? 

With inflation roller coasters, student loan debt forgiveness, and job retention uncertainties, prepping your budget and financial planning can be no easy feat. This year especially, financial wellness will remain a much-discussed topic.

So, what will this year’s financial ambitions look like?

Setting the Stage

The year 2024 will be a pivotal moment for financial planning and goal-setting among Americans. With our shifting economic paradigms and evolving societal norms, individuals across generations are redefining their priorities. 

Debt reduction will remain high on the priority list which then creates a ripple effect to financial independence, emergency savings and eventually stronger, more impactful investment priorities. 

The spectrum of financial goals reflects a nuanced understanding of personal finance and long-term wealth accumulation.

Key Financial Goals

1. Conquer Debt

Tackling debt remains a perennial priority for Americans across all age groups. Currently, federal debt per person is about $105,722. Most of this debt is in mortgages and student loans, but it is still debt nonetheless. Whether it’s student loans, credit card debt, or mortgage obligations, individuals are fervently committed to alleviating financial burdens. By devising strategic repayment plans and adopting prudent spending habits, Americans aim to liberate themselves from the shackles of debt, fostering financial freedom and peace of mind. However, this isn’t easy to do alone…

2.Achieve Financial Independence

The desire for financial autonomy stands as a paramount goal for many Americans in 2024. Amidst rising living costs and economic uncertainties, individuals strive to cultivate robust savings, diversified investment portfolios, and supplementary income streams. The pursuit of financial independence empowers individuals to navigate unforeseen challenges with resilience and confidence.

“You will know if you are financially independent if you have eliminated your debt, have a financial reserve that can sustain you for an extended period, and have reduced stress levels when managing your finances,” says Annette Harris, owner of Harris Financial Coaching in Jacksonville, Florida. “Financial independence is achieved if you are not dependent upon your employer, income from your business, or financial assistance from an outside source.”

3.Build Emergency Funds

In an era characterized by volatility and unpredictability, the significance of emergency funds cannot be overstated. Americans are prioritizing the establishment of robust safety nets, comprising three to six months’ worth of living expenses. The majority (56 percent) of U.S. adults wouldn’t pay for an emergency expense of $1,000 or more, such as an emergency room visit or unexpected car repair, from their savings account. The percentage of people who would pay from their savings has barely changed over the past three years…

With emergency funds in place, individuals safeguard themselves against unforeseen setbacks, ensuring financial stability amidst tumultuous times.

Why these goals?

The impetus behind Americans’ fervent pursuit of financial goals in 2024 stems from a confluence of factors. Heightened awareness of economic vulnerabilities, coupled with aspirations for long-term prosperity, propels individuals to take proactive steps towards financial empowerment. The last few years has served as a stark wake-up call, underscoring the indispensability of prudent financial planning and preparedness.

And to put it simply, when you feel “financially free” you spend less time worrying and more time on the activities that bring you joy. Money can provide so much fun and wellbeing, but it also brings the most amount of stress and constrictions of anything out there.

More support is needed

Employers play a pivotal role in fostering the financial well-being of their workforce. By offering comprehensive financial education programs, personalized financial planning resources, and employer-sponsored financial plans, companies can empower employees to make informed financial decisions and pursue their goals with confidence. 

Initiatives such as financial wellness voluntary benefits, flexible work arrangements, wellness stipends, and performance-based bonuses can alleviate financial stressors and enhance employee morale.

As we traverse the financial landscape of 2024, it’s evident that Americans are steadfastly committed to realizing their financial aspirations and truly their potential. By prioritizing financial independence, debt reduction, and emergency preparedness, individuals pave the way for sustained prosperity and resilience. 

Employers have a pivotal role to play in supporting employee financial wellness, thereby fostering a culture of empowerment, security, and growth in the workplace. Learn more about how you can empower your employees’ financial wellbeing with TrueConnect’s Financial Wellness Platform.