Saving money reported as the most common goal for consumers in 2021

In 2020, the coronavirus pandemic saw a significant increase in budgeting and other financial concerns. And, following this, a survey has shown that saving money is the most popular New Year’s resolution among consumers in the US. 

In the survey, which was carried out by MoneyRates, improving personal finances was the highest ranked goal for 2021 – higher than losing weight and quitting smoking. 

Budgeting concerns in the pandemic

The three biggest priorities for the consumers surveyed were saving more money, cutting back on spending, and reducing personal debt. This isn’t surprising, as it comes at a time when many households are facing job losses and a reduction in income. 

Over 60% of the respondents said they wanted to improve their budget in the coming year, with those most motivated being the over 55’s. 

Some specific goals mentioned included creating a monthly or weekly budget and saving a st amount of money each month using automated deposits. Additionally, a substantial number of people wanted to reduce expenses, and especially reduce credit card debt and repayments. 

Reducing debt is essential

Over 55% of consumers surveyed said they wanted to reduce their debt in the coming year. This is very important when creating a budget, as high-interest debts like credit cards, store cards, or payday loans can end up costing a lot. 

In some cases, consumers should consider switching to a balance transfer card. It’s also recommended that they make a debt repayment plan to reduce their debts. 

For consumers wanting to improve their personal finances, it’s important to set clear financial goals, have a clear budget and stick to it, and find ways to reduce expenses and boost income. 

Financial goals should always be realistic. But, they should also be challenging enough to stay motivated. By determining some key goals and creating a solid plan of action, it’s very much possible to boost your budget and improve your financial situation in 2021.